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Crypto Trading

How to Choose A Crypto Trading Platform

Last Update: 2021-12-17

How to Choose A Crypto Trading Platform?

Where are you right now in your crypto trading journey? Still, wondering how to buy bitcoin or trade altcoins and how to choose a crypto trading platform that suits your needs best? Or have you already earned quite a sum from your trades and are now exploring the best crypto trading platforms available to grow your portfolio?

Wherever you are in this normally complex yet fun world of altcoin and bitcoin buy and sell, you have to choose the best crypto trading platform that responds well to your needs, goals, preferences, and strategies as a trader. 

How to choose a Crypto Trading Exchange?

  • Choose a trusted crypto trading exchange
  • Choose based on fund security and data
  • Choose based on the fees that you have to pay
  • Choose a crypto platform that has all the required features
  • Choose a trading platform that has high definition and interactive charts
  • Choose an automated crypto trading platform

What are Cryptocurrency Trading Platforms?

Cryptocurrency trading platforms are digital places, applications, or software where you can participate in buying and selling bitcoin or altcoins. These platforms use modern technology to provide you with the means to trade cryptocurrency with other people from your country and even from different places across the globe. Through these crypto trading platforms, you get to have a venue where you can easily connect with other crypto enthusiasts who want to profit from the buy and sell of digital currencies. 

See also: Should you Buy Bitcoin Now

Where to Find the Best Bitcoin Trading Platforms?

Google is your best friend when it comes to knowing the best of the best. But could it be your sole source of information? Definitely not. A lot of online communities harbor warm communication among crypto enthusiasts. You will find Telegram, Reddit, and Discord as some of the most helpful online networks when it comes to discussions about cryptocurrency trading tips, relevant crypto news, and random crypto information. 

Types of Exchanges

Not all crypto trading platforms are the same. Despite being all venues for crypto trading, they give you unique experiences, serve different purposes, and open you to a wide range of opportunities. 

Here are just some of the most common types of crypto trading platforms that you might encounter: 

1. Centralized Cryptocurrency Exchanges 

Do you know that some of the most popular cryptocurrency exchanges right now fall under the centralized cryptocurrency exchange category? Binance, Bittrex, BitMEX, and Kraken are centralized cryptocurrency exchanges that are used by millions of traders worldwide. They have a centralized operator that is responsible for their security and development. Centralized exchanges have done much for the promotion of cryptocurrency trading among the masses and have the biggest liquidity and trading volumes. 

2. Decentralized Cryptocurrency Exchanges

Decentralized cryptocurrency exchanges are not controlled by a single entity. In these platforms, traders take full control of their digital assets and transactions. The entire process of coin trading that happens in a decentralized crypto exchange is dependent solely upon a set of smart contracts which permit the trustless exchange of digital tokens. Examples of decentralized crypto exchanges are Binance DEX and EtherDelta. 

3. Crypto Broker Exchanges

Crypto broker exchanges are those that are fully compliant to the regulations and policies of the state and locality where they operate. Coinbase is an example of a crypto broker exchange (although it can also be categorized as a centralized crypto exchange) because it is completely regulated by US laws. Broker exchanges are deemed secure because they have the eyes of the government monitoring them. 

4. Instant Crypto Exchanges

As the name suggests, these platforms offer you an easy and fast way of exchanging your digital currency for another crypto asset. Among the platforms under this category are Changelly and Shapeshift. They merely provide a coin exchange service where you can instantly exchange one token into another coin --- they are not the right venues for trading coins against other traders. Note also that instant crypto exchanges get higher fees than the other trading platforms. 

5. Hybrid Crypto Exchanges

Hybrid crypto exchanges combine the beautiful features of both centralized and decentralized cryptocurrency exchanges. These trading platforms focus on intensive security where funds are stored in cold storage and effective systems are in place to protect the assets of users. Among the hybrid, crypto exchanges are CEX and Bitstamp. 

See also: Buy Ethereum

6. Multi-Exchange Crypto Trading Platform

Multi-exchange crypto trading platforms are technological innovations in the crypto trading industry. They provide a seamless trading experience by offering a platform where traders can conveniently trade from many exchanges using only a single application. These multi-exchange cryptocurrency trading software also offer portfolio management solutions and other trading tools. Examples of multi-exchange crypto trading apps are Altrady, Coinigy, and Bitsgap. To use these platforms, you need to have an account with your trusted exchange first. 

What to consider when choosing a cryptocurrency exchange in 2021?

There is an abundance of cryptocurrency trading platforms in the internet sphere. How do you choose which is the right one for you? Here are some questions that you might want to answer in the process: 

1. Can I trust the crypto trading platform? 

The reputation of a cryptocurrency trading platform is one of the most important factors that you need to take into account. Once a platform has been involved in a hack or a questionable scheme, then you also better brace yourself for future woes. 

To check the reputation of a crypto trading platform, you can research its founders such as who are the leaders of the exchange company, what are their backgrounds and contributions to the industry, and much more. 

Another trick to see whether or not a particular crypto trading platform can be trusted or not is by letting Google do the work. Use Google’s search box and type the word ‘scam’ right beside the name of the trading app. Check the results of the search engine and use careful judgment while reading reviews. 

2. How secure are my funds and personal data? 

We all trade with the goal of growing our funds. But it is also because of this desire to increase our assets that we often fall trap to false promises and scams. 

To assess the security of your funds and personal data on a prospective cryptocurrency exchange, you can check the presence of sophisticated security features and the promise of insurance protection. Among the security features to look out for are two-factor authentication, account encryption, privacy policy, coin storage, information storage, server security and surveillance, and more. 

3. How much are the fees that I need to pay? 

When you trade on an exchange or use the products of crypto trading software, you definitely have to pay a certain fee. These fees are used to support the innovation of the people behind the crypto trading app and sustain the development of useful tools. 

Know, however, that fees differ on each crypto exchange and trading software. Most cryptocurrency exchanges have a tiered schedule for their trading fees which usually go lower when you increase your trading volume. Although there are free crypto trading apps in the market, it is still advisable to subscribe to their premium plans for you to enjoy the full features. 

4. What features can help me succeed as a crypto trader? 

Crypto exchanges and trading applications were developed by different minds and for varying purposes. Some platforms are heavily focused on trading efficiency while some provide you with tools to better manage your digital assets. Here are just some of the features that you can look out for in a crypto trading platform:

5. Real-Time Crypto Alerts

You may have repeatedly heard this before, but let us restate the fact yet again: cryptocurrency markets are fast-moving. Because of this extremely fast nature of price fluctuations, you need to have the necessary tools that can let you make the right decisions at the fastest possible time. Delays in crypto alerts can cause you to miss profitable opportunities and even compromise your entire crypto fortune. 

6. Smartly Designed Trading Terminal 

Your trading terminal would be your companion for most of the time. The best crypto trading platform should have a trading terminal that is smartly designed for the best experience of its users. Relevant information should be easily visible and trading functionalities should be highly accessible. 

7. Trading Analytics 

Information becomes a powerful tool when it is generated accurately and distributed meaningfully. Know that cryptocurrency trading involves a lot of data from millions of transactions in a day. The ability to make sense of such complex information is essential to your success. 

8. High-Definition and Interactive Charts

Your chosen crypto trading platform should display high-definition cryptocurrency charts for better market monitoring and analysis. Drawing tools, camera snapshot capabilities, technical indicators, and other charting features are also good additions to a high-definition chart. And if your platform would enable a multiple chart layout, then that could help you boost your trading performance even more! 

9. Automatic and Comprehensive Crypto Portfolio Manager 

Spreadsheets and manual record-keeping may do the job, but they are never 100% error-free nor extremely reliable. A good crypto trading platform can give you an automatic overview of your digital assets and provide you with detailed information about your portfolios. 

Altrady is a reputable cryptocurrency trading platform that offers innovative solutions for easy management of digital assets and convenient trading across multiple crypto exchanges. If you have an account on Binance, Binance Futures, Binance US, Bittrex, BitMEX, Coinbase Pro, Huobi, HitBTC, KuCoin, Kraken, OKEx, or Poloniex, then you could take advantage of Altrady’s technology for a simple and convenient crypto trading journey! ‍

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