Cryptocurrency Trading Platforms- Tips To Get You Started

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The interest and investment in cryptocurrencies have posed major problems in respects to the security of trading platforms and exchanges. A cryptocurrency trading platform refers to a business that allows investors to trade cryptocurrencies for other assets, such as conventional fiat money. Cryptocurrency trading platforms can be market markers that typically takes the bid-ask trades as a transaction commission for its service or, as a matching platform.

What is a cryptocurrency trading platform?

Cryptocurrency trading platforms are online platforms where traders exchange, buy or sell cryptocurrencies for other traditional currency like US dollars or Euro. For those traders that want to trade professionally and have access to excellent trading tools, they will require a platform that needs them to verify their ID and open an account. At the same time, those who want to make simple and occasional trades can choose from a variety of platforms.

Types of trading platform

Cryptocurrency Trading PlatformsTrading Platforms are online platforms that connect sellers and buyers and take a fee from each for the service they provide.

Direct Trading can be done with platforms that offer direct peer to peer trading where traders from different nations can exchange currency. However, direct trading platforms do not have a fixed exchange rate. Instead, each seller sets his/her exchange rate.

Brokers are financial service providers that allow traders o register and buy/sell cryptocurrencies at a set price. These brokers are similar to FX brokers by providing services like crypto as CFDs or direct crypto to crypto.

What to look out for before joining a cryptocurrency trading platform?

It is crucial to research before you choose a trading platform and below use these guidelines to identify if they can accommodate your needs.

Payment Methods

Before investing find out the payment methods available on the platform. As a trader, you need to know whether the platform uses credit or debit card, wire transfer or PayPal. In the same way, if the platform has limited payment methods, then it may not be suitable for you.

As a trader remember that buying cryptocurrencies with a credit card will always require identity verification and charge a premium price with higher transaction fees as there is a considerable risk of fraud. Therefore, buying cryptocurrency through wire transfer will take longer as it takes time for banks to process the transaction.

Reputation

Cryptocurrency Trading PlatformsAn excellent way to find out about a cryptocurrency trading platform is to search through reviews from well-known industry websites and regular individual users. Before you start trading, you can consult first on platforms such as Reddit or BitcoinTalk.

Fees

Most cryptocurrency platforms charge a fee for the information on their websites. Therefore, before joining any platform make sure you know the transaction, withdrawal and deposit fees. Fees differ substantially depending on the cryptocurrency trading platform you decide to use.

Verification Requirements

The majority of the cryptocurrency trading platforms requires some ID verification to make deposits and withdrawals. However, some platforms will allow traders to remain anonymous. Although verification takes up to a few days, it might seem like a pain though it protects the trading platform against scams and money laundering.

Geographical Restrictions

Some specific user functions offered by trading platforms are only accessible from specified countries. With this in mind, make sure the platform you want to join gives you full access to all platform functions and tools in the country you currently live.

Exchange Rate

Different platforms have different charges and you will be surprised how much you can save if you consult around before trading.

Examples of cryptocurrency trading platforms

There are plenty of cryptocurrency trading platforms to choose from, but not all the platforms are the same. Below are a few trading platforms based on their criteria such as accessibility, fees, security, and user-friendliness.

Coinbase

Cryptocurrency Trading PlatformsCoinbase is one of the primary cryptocurrency trading platforms and contains well-known brokers in the world. The platform permit users to trade the crypto at a set price that focuses on the market value. The market value permits users to buy their cryptocurrencies faster than other exchanges. Moreover, it is supported by its trusted investors and used by millions of traders internationally. The Coinbase platform makes it easy for users to use, store, buy and trade digital currency securely.

Users can purchase bitcoin, ethereum on the platform and the fees are lower than other crypto platforms that operate in the same business model. Above all, it is one of the cryptocurrency platforms that accept credit cards and bank transfers.

Kraken

Cryptocurrency Trading PlatformsIt is one of the biggest cryptocurrency trading platform currently operating. The platform possesses a good reputation as being a secure destination for traders interested in trading cryptocurrencies. Kraken provides efficient trading opportunities in various fiat currencies. It is also the leading cryptocurrency trading platform for BTC/EUR in terms of daily trading volume.

The platform is very popular around the globe and is available to users in Canada, Japan, the US, and many European countries. Kraken dominates due to its dealing in multiple fiat currencies such as the Canadian dollar, the Euro, the Japanese Yen, the US dollar and the British pound. Above all, the platform enjoys a favorable reputation because it has been resilient to significant hackers. For professional users, Kraken offers margin trading and many other trading features.

Cex.io

Cryptocurrency Trading PlatformsThe trading platform provides a wide range of services for using bitcoin and other cryptocurrencies. The trading platform solely operates as a cryptocurrency exchange. It allows users to sell and buy Ethereum, Zcash, Dash, and Bitcoin with debit cards instantly. Furthermore, the Cex.io platform offers cross-platform trading through mobile apps, WebSockets, Rest API, and websites. One of the reasons for Cex.io popularity is that its site provides users with easy to use interface, making it favorable for beginners.

It also provides a multi-level account system that is suitable and personalized for both institutional trades and bitcoin beginners. Therefore for traders looking to trade bitcoins professionally, Cex.io offers user-friendly and customizable dashboard and margin trading. The platform also provides a brokerage service for novice traders simple ways to buy bitcoin at prices that are in tandem with the market rate.

Conclusion

It doesn’t matter how trustworthy these exchanges are but as a trader, you need to know who is in control. Also, make sure to keep your private keys safe as they are the only means to recover your cryptos.

The best thing to do with your cryptocurrency investment is avoiding getting stuck in a single exchange.