The world has drastically changed during the last two years, and a lot of changes had to do with the pandemic of coronavirus. People had to adjust and change a whole set of habits they had before, including the way they spend their money. Even though many are struggling with their finance, those who took the opportunity to invest in bitcoin a couple of years ago, ended up pretty rich with its price climbing above 60,000 USD.
With it, the value of many other crypto coins started rising, influencing the start of a new digital era. Soon after, companies saw the direction the world is going to, and more and more started introducing crypto as a means of payment. This influenced the start of yet another crypto fever. Digital currencies became the number one investment interest. Everyone was talking and thinking about investing and trading. No doubt, it is a smart thing to do, giving the circumstances we’re faced with.
Therefore, if you are a potential investor wanting to do some bitcoin trading, then you should think hard about which platform to use. Because if you end up choosing randomly, you might be caught in a situation where you have invested too much effort, time, and money, but the results did not satisfy you.
With tons of trading platforms available, you need to find a suitable one. And for that, you just need a couple of advice. So, we’ve assembled a list of things you need to keep in mind if you want to make the most out of your trading activity.
1. Check its legality
Choosing bitcoin as your primary currency for trading is already a good choice. Bitcoin as a currency offers a lot more legality than other coins. Lots of platforms, like Bitcoin Rush, offer a great source of info and tools for beginners and those who have been in the game for a while. But when choosing any other platform, your primary concern should its legality. Mostly because countries have been introducing laws concerning this issue, and to become a serious trader, one needs to understand them.
Moreover, the platform of your choice has to work within legal boundaries. Although it seems like obvious advice, you’d be surprised how many traders forget this or take it for granted, then end up disappointed.
2. Check its Reputation
Just as is the case with any other business, when you want to take part in it, you’re most concerned about its reputation. In the case of a trading platform you want to know whether their offers and requests are true, so you can decide whether you should trade using their services or not. If the reputation is bad, it’s a signal you shouldn’t be working with them. Choose reputable platforms with positive dealer ratings.
Don’t make the mistake of investing in a trading platform before you determine its reputation. It might cost you too much.
Although we’re writing about the most famous digital currency today, it is rather young and this type of trade is still new. Unfortunately, many people don’t understand this and end up being used by scammers.
So, how do you check if the reputation is good or not?
There are several ways to check the reputation of a trading platform. The first is to ask people who are experienced in trading. You probably already have some in your circle of friends and acquaintances. Use your network to help you determine the reputation of different platforms. The second method is reading reviews online. Check out their social media sites and learn more about the experiences of previous clients. Reading the terms and conditions can also help you set expectations.
3. Asset prices and fees
Probably the most important factor when choosing a trading platform, which influences your profit. In most cases, they are charged based on a percentage of the trade. Because traders now often buy and sell, costs can be high. Some platforms will even charge a withdrawal fee.
Asset prices and deviations will help you identify trading platforms that are prone to low liquidity and volume loss. Most Bitcoin trading ones charge a small fee for their trades. However, these fees are not standardized and you must choose a platform that will not charge you too much.
If you have a hunch, or if your research showed certain platforms cannot guarantee the security of your assets, avoid them at all cost. How can you choose a safe one then? A good way to choose is to find those that offer two-factor authentication.
At the moment, it is the most reliable level of security. After a certain period, you may need to re-evaluate if the platform has enough security features.
Doing this from to time will protect your assets, so make it a habit.
You’ll recognize a good platform by multiple protocols on safety and trade. A good one should have multiple.
5. Transaction time
If you have listened to our advice and have read users’ experiences of a certain platform, then you must know if the transaction time is slow or not. Determine how long it takes to process transactions on the platform. Platforms with short transaction periods are obviously better than those with long and complex terms. On some platforms, you can wait weeks until transactions are processed. Doing business with them is a waste of time, and time is money when it comes to trading bitcoin. Prices go up and down in no time.
6. Fiat exchange
When trading, you want to be able to convert your earnings from Bitcoin into the local currency. At this point, you’re interested in the Fiat currency. All bitcoin traders need to exchange fiat compatible at some point. It allows the exchange rate to be converted into a traditional currency. Fiat’s exchange processes are important when you need to get in or out of the world of crypto trading.
Following these 6 guidelines should cover the most important factors you need to consider when choosing a platform to trade. Implement them, and you’ll be on the right path of ensuring your assets are safely kept in your wallet.