Top Points to Look out for Before Joining a Digital Currency Trading Platform
Are you eagerly waiting to start the cryptocurrency trade? Not sure which crypto trading platform to join? This article will put light on some of the important things to know before trading digital currencies.
What is the Digital Currency Trading Platform?
Digital Currency Trading Platform is a portal where you can exchange, buy or sell cryptocurrencies for traditional currency or digital currency. For those who want to trade cryptocurrencies, you will need to use exchanges or trading platforms which require you to open an account and verify ID. For occasional cryptocurrencies traders, there are a few platforms that can be used without opening an account.
Types of Trading Platforms
- Direct Trading: These are the platforms offering direct person to person trading; individuals from different places can exchanges currencies on the go. Direct trading portals don’t have any fixed price, seller sets own exchange rate.
- Trading Platforms: These are the portals or websites connecting buyers and sellers. Trading platforms charge a fee for each crypto transaction.
- Brokers: These are those portals that anyone can visit to trade cryptocurrencies at a rate set by the broker. These cryptocurrency brokers are quite similar to any foreign exchange brokers.
What to check before joining a crypto trading platform?
It’s always important to do detailed research before you start the crypto trading. Here are some of the important things to check before your first digital currency trade.
- Reputation- The best way of finding a crypto exchange is to search through online reviews from previous customers and well-known industry portals. There are several forums such as Reddit, where you can ask any questions related to crypto trading platforms.
- Payment Methods- What payment methods are supported on the cryptocurrency trading platforms? Wire transfer? PayPal? Credit & Debit card? It’s not recommended to use the crypto trading platform with limited payment options. Also, remember that buying a digital currency with a credit card require ID verification and attracts premium charges because of the higher risk of scam and frauds. Moreover, a trader needs to pay higher processing and transaction fees with credit card transactions. Buying digital currency through wire transfer may take a longer time, depending on the bank.
- Fees- All exchanges charge a trading fee for both Buy and Sell Digital Currency, information related to which can be easily found on its portals. Before joining the site, make sure you understand transaction, withdrawal and deposit fees clearly. Fees differ from exchange to exchange depending on the features and their geographical location, hence compare all aspects properly.
- Security- Always check the security features of the crypto trading platform carefully. It’s always important to select exchanges by considering today’s security standards. The best exchanges follow advanced security features to protect traders from all scams or frauds. Try knowing all the security features of the exchange thoroughly before joining.
- Verification Process- Most of the reputed cryptocurrency trading platforms require some sort of Identity verification process to make crypto withdrawals and deposits. Few exchanges will help you to remain anonymous. In some cases, the verification process can take up to a few days, but it protects the crypto exchange against all kinds of frauds, money laundering, and scams.
- Exchange Rate- Different digital currency platforms have different exchange rates. Crypto traders will be surprised to know, that they can save more if they will selectthe right exchange.However it’s not uncommon for the crypto rates to fluctuate, so check the best rate before trading.
- Geographical Restrictions- Check for the geographical restrictions with the trading platform before joining. Some user functions offered by the crypto exchange are limited from certain countries, make sure you join exchange that will allow full access to all functions and tools in the country you’re presently living.
Picking the right digital currency trading platform for your specific requirements may be time-consuming and difficult. However, always pay attention to the reputation, fees, security, verification processes, exchange rate and geographical restrictions a crypto exchange platform has to offer. Always remember that you are not restricted to use only one digital currency platform. Hopefully, the information shared will help you select the right crypto exchange platform for regular use. For any queries, you can feel free to ask here. Happy Trading!