A Guide to Choosing a Suitable Trading Platform!

Trading platform

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The profit opportunities are being introduced to a broader audience by crypto exchanges. With the buzz that cryptocurrency is getting, it’s easy to become involved in cryptocurrency trading. If you want a piece of the action but don’t understand how the market works or what trading platform provides the best results, this guide will help you.

All you have to do is the eagerness to start bitcoin trading and to use a trusted platform by registering on the website.

Choosing the right trading platform is difficult for first-time traders, as many things need to be considered before making your choice. The information below will help you decide which crypto exchange platform is best for your needs instead of making hasty decisions without understanding what’s happening behind the scenes and giving up later on due to a lack of experience. 

Security of Deals

The website’s security and credibility is the primary thing to focus on when choosing a cryptocurrency exchange platform. The trading platform should be secure, and hackers should have no loopholes to break through.

 The site must have a good reputation too. You need to ensure that you are going all out to secure users’ funds, not just protecting them in name only to do with as they please in reality. Once satisfied with how safe your virtual cash will be while enjoying the platform’s features, it’s time to look at other aspects of the deal.

Location of the exchange

Where is the exchange company registered? When choosing a cryptocurrency exchange platform, you must register with a company headquartered in a location of your choice. It makes sense because the country’s legislation significantly affects how your funds are handled. 

If you choose an online trading platform based in a country that does not offer you enough legal protection, your funds may be subject to international laws. For example, if the platform receives money from clients under financial regulations in one nation but then transfers it to another location or country without permission or reporting to the authorities, it could face severe penalties and fines by the regulators.

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The procedure of KYC

On a typical day, over 600 million trades are made in cryptocurrency markets. As a result, it is not uncommon for exchanges to need KYC information from customers who wish to trade. The procedure of KYC (know your customer or identification) may seem an unlikely topic for beginners in cryptocurrency, but this is an essential part of any company that offers trading services to the public. 

The aim of KYC is simple: it allows companies to verify that clients are who they say they are and that their accounts contain no illegal activity. It can also help focus criminals on particular industries instead of simply gambling away their ill-gotten funds.

Transaction and exchange fees

Trading is a serious business, and you need to be sure that the exchange platform you are choosing offers the most competitive turn-around times and the lowest transaction fees. If a company provides its services for free, then there is always a chance that people could withhold these incentives to entice new customers to use the service.

It would mean that you get less than you bargained for and would eventually pay more in the long run because of how many people made other transactions at better rates.

Liquidity of the business

It is essential to consider having a trustworthy crypto exchange company that can handle the volume of transactions it makes. Furthermore, it is vital if you are new to the market, as it may be challenging to remember which exchanges offer the most liquidity when buying coins.

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As a result, you may end up getting into a lot of bad deals and wasting your funds by not being able to immediately cash out at a better rate.

Diversity of the cryptocurrencies on exchange

If you are new to cryptocurrency, you must choose an exchange that allows you to trade in various virtual coins. Unfortunately, there are so many cryptocurrencies that each exchange may only include a few exclusive ones on its platform. 

For example, some exchanges may only list specific types of coins it sees as their most valuable and profitable. It is called the ‘strong hands’ approach and helps generate more profit for the exchange because other investors cannot respond to these coins by droves when they become available on the market.

Supports every trading feature

Plenty of platforms offer essential support, but they could be missing out on some of your favorite features you might not be aware of. For example, some platforms provide only basic trading without the option to buy and sell coins.

It can be a disadvantage if a significant market crash occurs and many traders lose their money because they could not liquidate their holdings quickly enough. In addition, other exchanges may not offer alterable transaction fees for coins that can change regularly on the market or have a short shelf life after being listed as investments.

Trading platform article and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on September 17, 2022.

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