Functions every trader should look for in exchange platforms
The cryptocurrency market is valued at over $113 billion by CoinMarketCap. And the continuous growth of the cryptocurrency industry has given birth to various crypto-exchange platforms. These platforms are gateways to trade digital currencies.
Here is a beginner’s guide to choosing a great cryptocurrency exchange platform:
This will make up most of the exchange platform’s reputation. Always verify if the platform is licensed by the authorities or governing bodies. Cryptocurrency exchange platforms that have low-security measures are prone to cyber-attacks that may result in huge losses. There are established platforms that are certified and regulated, and which comply with applicable laws all over the world, so be sure to check certain security standards before investing chunks of your hard-earned money.
A cryptocurrency exchange platform is bound to ask for KYCs. Not only do these documents ensure that all traders are legitimate but they also safeguard the platform from any fraudulent transactions. Any fraudulent activity may harm the performance and system of a platform that may result in investment losses.
Since the competition is starting to get tough in the fintech sector because of the media attention it has gained with the booming value of cryptocurrencies, these cryptocurrency exchange platforms are competing to give the lowest possible fees while providing the best user experience.
Processing of Transactions
Generally, cryptocurrency exchange platforms offer a processing period of 1 or 2 days to verify your transactions but there are some instant cryptocurrency exchange platforms which validate your transactions real-time.
With regard to crypto or fiat currency, it is best to have multiple pairing options to optimize convenience – this is one way to identify a quality crypto exchange platform. A good platform should have digital currency pairings that include: USD, EUR, JPY, PHP, ETC, LTC, ETH, Bitcoin Cash, Bitcoin Gold, and XRP. If more pairings are offered, then it’s a good deal!
It may not be necessary for beginners or long-time users, but having the most out of what you’ve availed yourself is like a buy-one-take-one deal. Margin trading allows users to leverage their capital for a higher buying capability. This is a good option for short-term traders which are targeting a return of investment by the minute.
Traders who target a particular cryptocurrency or a specific function of a cryptocurrency exchange platform should be responsible enough to study and analyze the pros and cons of each platform and cryptocurrency. Whatever it is, the volatile market of the crypto world is not an overnight get-rich scheme.