4 Things to Consider When Choosing a Cryptocurrency Trading Platform

Entering the vast cryptocurrency market is as successful as the trading platform you choose to join with. With over 9,000 cryptocurrencies available in the market as of January 2024, choosing a platform that offers a list of the most rewarding cryptos can be challenging. A good platform provides more than an extensive list of rewarding cryptos; it gives you flexibility, security, and liquidity, among other benefits.

That’s why you must learn the top factors to consider when choosing your new cryptocurrency platform. Here are four major ones you should consider when making this crucial investment decision.

Security

Most trading platforms today have experienced security issues over the past few years, exposing investors to high-value losses. This is why you should keep security on top of your mind when picking your next platform. For instance, when you buy Bitcoin on Kraken, you’re almost assured of intensive security, as this platform has never recorded a security breach.

This is despite being available in over 190 countries, offering trading access to over 200 cryptocurrencies. One way to know if your target platform is secure is to check the information it provides about its security practices. Check for reviews and ratings from online and offline clients and users.

Jurisdiction

It’s important to research if the trading platform you’re eyeing serves users in your state or region. Different countries have different rules and regulations around the operation of crypto platforms. If you’ve checked and a platform you’re interested in contradicts any set rules, you’ll have to let it pass and go for another option.

You can also check if the exchange platform has specific addresses for countries or regions on their website URL. For instance, a platform ending with .us or .au means they’re available for residents in those countries.

Liquidity

Sufficient liquidity means you’ll easily exchange your cash into coins and vice versa without delays or paying for a big markup. This is important because of the volatile nature of many cryptocurrencies that push prices high and low within a short time frame. When this happens, you’ll want to buy or sell your readily available coins for maximum returns.

A good way to determine if your platform of choice has high liquidity is to check if it has a high volume of orders flowing through its order books at any point in time. The more the orders, the more liquid it is. For a platform to get to these high volumes of transactions, it has to harbor a high volume of users.

Transaction Fees

Trading platforms charge you up to 5% per trade anytime you deposit, withdraw, or trade on the platform. The fees you’re charged at the end of the month are ranked into fee tiers that are typically based on your total trading volume over the 30-day trading period. Your fee percentage generally falls as the value of your transactions increases.

For instance, you could pay less for transacting $30,000 at a go in a month than if you transacted $1,500 for 20 times in the same month. The point is to understand how the crypto exchange works in relation to the fees they charge and settle with a platform that offers a more flexible transaction chargesheet.

Finding a platform that offers everything you need for a seamless transaction in one plate is challenging. However, it’s possible to get one that meets more than 75% of your needs efficiently. Always list irreducible minimums you want to be met and go for a platform that checks all those and additional non-critical ones.