What Turns Crucial While Choosing a Crypto Platform?

Author : Marketing Team | Published On : 14 May 2021

As per Nigel Green, CEO, deVere Group, one of the leading independent financial advisory firms, “Investing in cryptocurrencies remains highly speculative, and it is not for everyone, but one of the keys to success would be selecting the right crypto exchange.”

Amidst escalating digital assets requirements, leading corporates are entering the crypto market and are considering using crypto as a viable payment option. Crypto has turned mainstream and is almost on the verge of mass adoption by both institutional and retail investors.

To fully leverage the benefits of crypto, an investor should understand the crypto sector’s various aspects. The first step in trading cryptocurrencies is finalizing a crypto platform from the existing options.

The crypto platforms that are currently available in the market comprise of several lucrative features. Finalizing an exchange that fits an investor best may be a huge task. But it is an unavoidable step and can yield great results as choosing the wrong platform can be disastrous and may not result in the expected profits.

Here are a few of the vital factors to consider while deciding on a suitable crypto platform.

Accepted Cryptocurrencies

The cryptocurrencies accepted on the respective crypto platform is of prime importance as a deciding factor. If high income is anticipated, platforms that are susceptible to higher market cap cryptocurrencies would be the best option. If security is the main criteria, a platform where stable coins are accepted would be ideal. Also, some platforms give you several crypto options. Such crypto platforms are best for a general trader who wants to try a hand in the crypto market.

Legitimacy

A crypto platform needs to be authentic. For this, an investor should verify the following details: suspicious letters in URL, ease of finding information about the parenting firm, the practicability of the given promises, accuracy, and clarity of more information provided on the platform.

Security aspects

Security is of prime significance for a crypto platform. According to modern standards, the two-factor authentication or the 2FA factor needs to be verified. 2FA is an extra security layer for an individual password. If a platform lacks a 2FA, it is always advisable to look for other platforms.

A crypto investor needs to avoid exchanges that give comparatively cheaper trading services or costs. This applies to platforms that belong to places with a proven record of weak investor security.

The Fees

A few of the crypto platforms hide the costs, while many others provide details on the expenditure in advance. A crypto exchange that is transparent about costs involved in trading cryptocurrencies on its platform should always be the priority.

The fees on a crypto platform are often calculated as a certain percentage for every trade basis. Also, some crypto platforms require a trader to pay withdrawal fees.

Reputation

As crypto is comparatively new, it is crucial to take a look at the reputation of the concerned platform. The crypto industry has faced several scams in the past, and investors have either wholly or partially lost their hard-earned money.

The internet is a highly reliable tool for checking the reputation of the crypto platform. Reviews, social media, etc. can be sources of reliable information.