Are you choosing the right bitcoin trading platform? Think again
If you wish to kick-start a trading career in Bitcoins, you need a strong, powerful, yet a safe Bitcoin trading platform. The platform you choose can be rapidly growing, but, at the same time must be highly secure for investors, well because, the safety of assets comes first.
But security isn’t the only factor that demands attention. Your bitcoin trading platform should be a place where you can easily buy and sell bitcoin, algorithms are backed up with unique trading mechanisms, blessed with strategies like scalping, high-frequency trading, and order book liquidity.
All in all, you must examine and evaluate various trading platforms like the Bitcoin Revolution before you settle with one. Because, no matter how rewarding Bitcoin is, you are never too far from a big fall. Exactly why, I have rounded up a list of factors, or decided upon a checklist that must comply with your selected trading platform.
Start listing various trading platforms, here is a list to begin with.
Conduct detailed research about the trading platform
Like every other operation, research tops the to-do list for this also. Find out the basic details, like managerial personnel, the number of years of operation, and reputation in the industry.
Most importantly, find the location of the trading platform. Bitcoins do not have a standardized set of rules in all countries. In fact, there are many countries where it is not yet regulated as a currency. Although things are improving, my concern is, the way you would trade in cryptocurrency and bitcoin will vary and depend on the country the platform is located. It might suit you, it might not. Thus it’s always wise to list out the pros and cons beforehand.
My recommendation is to pick a country that has friendly and cooperative policies and has a minimum probability of problems in the future. Lastly, don’t forget to find out reliable information about its reputation in the market. The founder’s image will give you a fair idea about it.
Analyze its complexity of usage
If you are in confusion and dilemma while trading in your platform, it is a big red flag. If certain things are hidden or filtered which is giving you a tough time to understand it’s operations, it’s better to stay away from the same.
An ideal trading platform should be open to you, in fact, simplicity is the key when it comes to determining legitimacy. Whether you are an amateur or an expert trader with years of experience, the right platform will serve both your requirements easily.
The interface should be simple and very intuitive. As simple as downloading an app from your play store – a few clicks and you are there. Your click must be directed to the desired page, and not anywhere else that demands another thorough read that is nowhere related to your primary transaction.
Your consideration list must notice the response rates and availability of apps of iOS or Android, because, let’s be honest, who doesn’t love a fast loading bitcoin trading platform.
Consider the liquidity of trading pairs
Once you are aware of trading pairs that are offered by the Bitcoin trading platform, find out its liquidity. Generally, a high-volume trading pair shows high liquidity. In most cases, many people are involved in the trading of the same, so this eliminates the problems.
Also, if you wish to sell such currency, you can do so, without being affected by unusual price changes.
But, how will you measure the liquidity of the platform? Well, there are websites dedicated specially for this purpose. Research about them. Make it a point that you don’t fall for paperwork, and platforms don’t take advantage of your amateur behaviour. Understand that if you are not getting what you are looking for about trading platforms on reputable sites, it’s not the right pick.
Ask about the trading fee
Well, trading platforms will certainly not provide you their services free of cost. They are business entities and survive on the demanded trading fee.
When deciding upon a trading platform, it is important to understand when the fee applies, where it applies and how it applies. Or else, it is quite easy to fall for scams, and as I said, people will take advantage of your inexperience.
They usually charge on a percentage basis of your trade. The value is mostly less than a percentage of your trade, say, 0.3% of the total exchange value. However, it can greatly vary with trading platforms, their terms of exchange and your transaction details.
Check the reliability of customer support
I haven’t yet asked you to conduct any tests, but this is one department where you can consider taking them.
Customer support is one of the most important determinants on my list. A legitimate trading platform will have good support and technical experts behind the system that will ensure hassle-free transactions. On the other hand, illegitimate ones, will not have any experts, let alone providing good support.
We all know the life of an investor is not a bed full of roses; it is tough, especially for bitcoin traders. Every now and then, you will find yourself in troubled waters, seeing no escape; this is when getting prompt support becomes all the more important.
If you are an amateur or a newbie just starting your endeavor in this ever-changing trade, you will find the need for customer support at your beck and call. They will not only guide you with the complex procedures but also helps you in learning the ropes of the trade.
However, it doesn’t necessarily imply that reliable customer support will always lead you to the better. To err is human but having good support does make a difference.
Double-check security protocols
You might be well aware of how hackers have been attacking bitcoin trading platforms. This time, your safety is not only in your hands but also on the security measures of your trading platform.
The first thing is the safety of your funds. Check the security put up by the trading platform because well it’s a matter of your hard-earned money.
If you are still not convinced to keep all your funds in one place. My recommendation is to transfer the rest in your private wallet. No matter how reliable the platform is, precaution is always better than cure.
Now when you are totally aware of all the determinants, get on the ground and start working. Look out for real-time user experience for final analysis. Visit Bitcoin forums or seek reviews about the trading platform you intend to pick. Lastly, trust your instincts, it often reveals what facts cannot.