Important things Crypto Investors should look for
Cryptocurrency platforms tend to mirror the traditional foreign exchange platforms but with a different twist to the intermediary services. One difference is the fact that you can access multiple digital assets, like coins and tokens, that debut in the cryptocurrency landscape.
Don’t let the cryptocurrency hype or FOMO (fear of missing out) mislead you to overlook vital information when looking for a cryptocurrency platform. A simple crypto market price action or movement can drain your account in seconds. In essence, cryptocurrency platform services must be transparent and provide necessary training to investors, similar to the services at SWYFTX.
Additionally, this article will also highlight eight main things to look for in a cryptocurrency platform.
- Wide Selection Of Cryptocurrencies
There are thousands of cryptocurrencies already circulating in the market, and the exchange platforms know best not to disregard any of them. Hence, it’s important that the platform will allow you to choose whichever digital instrument fits your risk appetite. Therefore, cryptocurrency platforms must provide a list or menu showing a selection of digital assets you can access.
With a wide array of cryptocurrencies to choose from, it can help you select the best one to add to your portfolio, giving you more chances of making money.
- Portfolio Security
Your portfolio security covers a wide area when investing in cryptocurrency, probably because of the decentralized nature of digital assets. You risk losing your investment by using unsafe crypto exchange platforms.
Look for specific features, like two-factor authentication or encryption, placed on trading accounts. You can back-test the security configurations to verify that it works. Otherwise, phishers (cybercriminals) can penetrate your account’s security and transfer your portfolio unidentified.
- Platform Fees And Commissions
Like brokers in the forex markets, cryptocurrency platforms charge fees and commissions on all trading transactions. And since there’s no regulation on cryptocurrency, you might want to look for the lowest service fee available in the market.
Platform fees can include charges for deposits and withdrawals from the exchange, and the exchange can decide to collect it from your trading capital. Before signing up for any cryptocurrency platform, get reviews from users and learn if there are hidden fees.
By now, most cryptocurrency platforms offer all-in-one intermediary services through digital wallets. Digital wallets give you control of your private keys for accessing cryptocurrencies in your portfolio and storage for your digital assets.
It’s crucial to know if the cryptocurrency platform allows you to manage your portfolio. It helps to determine which wallet can pair with your cryptocurrency volumes. For instance, hot wallets are best for handling small amounts of crypto, and cold wallets can hold a larger batch of digital assets.
- Payment Options
Unlike the cumbersome procedures in the forex market, funding your trading accounts and buying crypto should be less stressful. Look for cryptocurrency platforms with various payment options, like crypto-to-crypto trade-offs or debit and credit card settlements. You want to enjoy faster funds transfer, whether depositing or withdrawing. Also, you can capitalize on the trading opportunities caused by crypto market volatility.
- Automation Option
Though not a vital feature in most cryptocurrency platforms, trading bots are fast becoming popular in the crypto markets. This is probably because analyzing the crypto market beforehand and babysitting your trades is time-consuming.
A few cryptocurrency platforms might be allowing autopilot trading but at a cost. Ask the support team about the automation option to learn more and decide if the cryptocurrency platform is your ideal trading partner.
- Platform Accessibility
It’s an uphill task to find a reliable cryptocurrency platform that matches your trading needs. Perhaps due to in-house rules or country regulations still warming up to the crypto trading market.
Whichever case, your cryptocurrency platform choice should revolve around availability and user-friendliness. If you can’t access the cryptocurrency platform in your region, look for alternatives that provide intermediary services to traders.
- Education And Support
Considering the constant supply of digital assets in the crypto world, cryptocurrency platforms must first understand the underlying details, like the crypto whitepaper, to offer investor education services. It helps enlighten you as you learn the tricks of approaching the crypto markets using new releases.
In addition, support must constantly respond to your queries, especially regarding the services and the cryptos on their list. It’s one way of boosting investor confidence, and it shows professionalism and expertise in the crypto field.
It’s challenging to exhaust prominent features to look for in a cryptocurrency platform. The infant market is probably still trying to settle in the exchange arena. However, investing in cryptocurrency should follow simple principles, like researching beforehand and making sure that your portfolio is safe and secure. Leave no stone unturned as you comb through various exchange services because your trading needs and success depend on your platforms.