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As a newbie trader just coming aboard the cryptocurrency board, you may feel lost in the universe of crypto assets trading. The number of crypto trading platforms online may seem like the number of star collections across the universe; they are just too many!
Yes, the cryptocurrency market is typically volatile and dynamic, but if you compound that with a lousy trading platform. The odds will quickly stack up against you. That is how investors burn their fingers and swear off crypto assets investing.
What makes a Good Trading Platform
If you search online for bitcoin or crypto trading platforms, your search results will bring up hundreds of hits. Top on my side includes Binance.US, bitcoin era, Kraken, Crypto.com, Bitcodemethod.org, Gemini, Coinbase, and FTX.US.
However, just a handful of those is worth your time and money. Most are empty promises that will leave a sour taste in your mouth and an empty wallet. Below, we have summarized what it takes to make a good bitcoin trading platform. Yes, we mentioned bitcoin because it is the leading cryptocurrency in the market by valuation, history, and investors’ confidence. Nonetheless, virtually all bitcoin trading platforms also trade other alternative coins.
Alt Coins Availability
Our last point above makes for the first critical feature that you should observe in a crypto trading platform. The platform should provide a variety of crypto assets for trade, not just the famous two; Bitcoin and Ethereum. That is a critical feature since the popular cryptos are somewhat saturated, and you might need a high initial investment for significant gains. There are newer coins in the market that may require a lower initial investment, but you end up with a bigger profit margin.
Reliability and Security
This is a no-brainer! In everything we do concerning our hard-earned money, time, or health, integrity is a prerequisite, not a luxury. When it comes to online trading platforms, or even any online platforms involving your identity and money, it must be reliable and secure. Not forgetting there are hackers interested in crypto-heist. The platform you are engaging in must employ the latest cybersecurity standards available.
Robust Trading Algorithm
Even if you are an active day trader, it helps to have some pre-programmed bots automating some of the tasks. However, most investors coming aboard the bitcoin trading ship are doing it as a side gig. Not their main forte. They are putting their money into the trading platform as one would in a hedge fund.
It is upon hedge fund managers (in this case, trading algorithms) to seek the best trading strategy and deals for their clients. The more sophisticated, accurate, fast, robust, and clever the algorithm, the better yield on clients’ ROI. As a client, you need to be on the lookout for referrals and client reviews, to see how high and often the platform leaves its clients happy.
Autonomous Market Trend Evaluation
As mentioned earlier, the crypto assets market is highly volatile and dynamic. Within a second, changes might happen, translating to millions – if not billions – of either losses or profit. Most times, it is not humanly possible to catch these changes. The trading platforms need to automate these market trend changes and issue alerts or make the necessary changes automatically.
The trade should be happening “lightning fast,” or at least come to that speed as humanly and technologically possible. With the highly volatile and dynamic cryptocurrency market, investors should be able to make their transactions very fast. A second could mean huge losses or profit. Investors should not miss out because the platform was slow to react to their instructions.
A lot goes into making a good trading platform. The list above is by no means exhaustive but enough to steer you clear of platforms that will bring you losses. Other top considerations include:
|24/7 Customer Support||Live Market Reports|
|Live Trading||Inclusive of the major Coins for trade|
|Robust Trading Strategy||Customization options|
If a bitcoin trading platform ticks on all the above checkboxes, then it is on the right track to becoming a good crypto trading platform for you. Remember to trade with just the money you are willing to lose. The crypto market, as mentioned severally in the article, is quite volatile and dynamic. That is in addition to the fact that it is unregulated.
For a more detailed guide for newbie investors in the crypto assets market, check out our earlier coverage on innov8tiv.