7 Factors To Consider When Choosing A Crypto Trading Platform
Cryptocurrency trading has become increasingly popular in recent years, especially during the huge run-up in crypto prices in 2020, as more individuals look to capitalize on the growing crypto markets.
As a result, numerous crypto trading platforms have emerged in recent years. With so many options available, choosing the right crypto trading platform may seem like a daunting task.
How To Choose a Crypto Trading Platform
As a crypto trader, choosing the right crypto trading platform is vital in your crypto journey. As the primary gateway for traders to buy and sell crypto, the right platform can enhance your trading capabilities, potentially improve your profitability, and consequently offer more confidence in navigating the crypto markets.
To help traders make an informed decision, we have listed down the top 7 factors (ranked in no particular order) to look out for when choosing a crypto trading platform.
Trading Fees
One significant but often overlooked aspect of crypto trading is the trading fees. As compared to a buy-and-hold investor, the trading fees for active traders can quickly add up.
High trading fees can chip away at your profits and worsen your losses and can impact the long-term performance of your portfolio.
Look out for a crypto trading platform that offers low trading fees, or better yet, zero trading fees.
Trade Execution
Trade execution is the speed and accuracy with which the crypto trading platform is able to carry out your buy and sell orders at your desired price.
Choosing a crypto trading platform with poor trade execution could result in price slippage – your order being executed at a different price than intended. This can potentially eat into profits, increase losses, or lead to missed opportunities if the price of the crypto changes rapidly while your trade is being executed.
Interface
New traders can seek a crypto trading platform offering a user-friendly interface that allows easy navigation, and streamlined trading features and processes.
Choosing a crypto trading platform that offers a simple and intuitive interface can make your overall trading experience a breeze.
Reliability
For active traders who buy and sell cryptocurrencies frequently, it is important to choose a reliable crypto trading platform with consistent performance, one that does not crash or freeze frequently, especially during times of high market volatility when prompt order execution is critical to profit from price movements, or to cut losses.
Safety And Security
The popularity and explosive growth of the crypto industry have attracted the attention of cybercriminals like hackers. No crypto exchange is immune to cyber-attacks and security breaches. With that said, it is all the more important for traders to do their due diligence before depositing their crypto assets on a crypto trading platform.
A safe crypto trading platform will enforce strict KYC procedures and comply with regulations as a sign of their commitment to user security.
Customer Service
Quality customer service can ensure a seamless trading experience.
In fast-moving crypto markets, responsive and efficient customer service that provides users with a quick resolution to account issues, technical problems, and offers trading guidance, is essential. Without good customer service, users may encounter long wait times, unhelpful responses, and potentially even lose funds in the case of technical problems.
Rewards
Crypto trading platforms offer rewards in various forms, such as deposit bonuses, referral bonuses, or exclusive access to certain features or events, to attract and retain traders by providing additional benefits.
Some crypto exchanges hold bonus events that reward users when they fulfill certain criteria. Analyze and compare rewards to have a good comparison to make a more informed decision.
How To Choose The Right Crypto Trading Platform
Choosing a suitable crypto trading platform can have an impact on your trading experience and potential profitability in the crypto markets. In order to find the crypto trading platform that meets your needs, it is important to consider a variety of factors such as trading fees, trade execution, reliability, safety and security, and more.
The Flipster app is a crypto trading platform that you can consider. With over 200+ tokens for you to trade, thick liquidity, and frequent bonus events, the Flipster app has the features you need to get started in your crypto journey. Download the Flipster app and experience these features today.
Disclaimer: Any opinion shared in this article is strictly the views and opinions of the author and should not be construed as financial advice. Flipster makes no judgment on the projects or the content uploaded.