You may be a crypto newbie just dipping your toe into the water or a seasoned pro eager to find the platform that best meets your needs. It’s important to look for certain features in every crypto trading platform.
After all, cryptocurrencies are on the rise, and traders are taking advantage of this growing trend. If you’re serious about trading cryptocurrencies, you’ll need to choose a platform that helps you track trends and manage trades with ease. You should also be able to enjoy lower fees while getting access to more advanced tools.
The good news is that today’s crypto trading platforms differ on many variables. Some have a design specific to beginners, while others cater to more advanced traders. There is an option out there that suits your needs and experience level. You check the numerous exchanges like OKX (brand) to shortlist one that is in sync with your objectives. So, where do you start?
Before committing to a cryptocurrency exchange, it is important to consider the trading costs.
Trading fees – Every time you make a trade (buy or sell crypto), the platform will charge you for the service. Traders should look for options that don’t overcharge for this service. Some platforms might charge a flat rate per trade. Some might charge based on a percentage of the amount getting traded, and others might use some combination of both approaches.
Deposit/withdrawal fees – Sometimes, platforms will charge fees when you deposit or withdraw money from your account (or from your wallet). You can ensure that these fees are reasonable and won’t eat into your profits too much.
There isn’t necessarily any reason why different accounts should get charged different rates. However, some platforms implement tiered pricing models, in which accounts that conduct higher volumes get charged lower rates than those with smaller trading volumes.
When you’re choosing a crypto trading platform, it’s important to consider the variety of coins available for trading and the variety of coins that can get traded.
Although your decision will depend on which cryptocurrencies you’re looking for. And what kinds of trades you want to make with them.
Credit cards – They are the fastest, safest, and most popular payment method. The majority of traders prefer credit cards as they can instantly deposit funds into the account.
Bank transfers – Some trading platforms offer this option, but it may take up to several days until the money appears on your crypto trading account.
E-wallets like PayPal – Some crypto exchanges accept them, but not all. They don’t want to deal with scam/fraud complaints from irate customers who have got scammed by a cunning seller. In reality, e-wallets are perfectly safe if you use them properly and don’t send money to shady sellers or shady websites.
Crypto wallet transfers – It is a convenient way of making deposits for those who possess cryptocurrency. However, it’s not so great for those who want to trade using fiat currency and have no access to digital assets.
Cash payments – Though rarely offered by crypto exchanges, they may be available at peer-to-peer Bitcoin marketplaces like LocalBitcoins or Wall of Coins. But there is a big downside – cash payments are only suitable for small transactions as it would be risky for both parties.
When it comes to crypto trading, mobile apps are essential. There’s no way around it since an ordinary computer is not powerful enough to handle massive trades. The best way to stay safe from cyber attacks is by going with a reputable app.
When using an app, you can ensure to check out its mobile trading section because you will find certain features that could help you in your crypto-trading career in a big way.
Most exchange platforms will offer the ability to execute several different types of orders. Some of these include:
Market Orders – This type of order gets placed to buy or sell at the best available price in the market. When this order gets filled, it is usually instantaneous, with no delay between the time you place your order and when it gets filled. Sell orders also get executed this way, allowing buyers and sellers to interact directly through the platform.
Limit Orders – A limit order lets you specify a maximum price (when buying) or minimum price (when selling) at which your crypto can get traded. The trade will only get completed if it meets that limit.
Stop-Loss Orders- This type of order sells your crypto once it falls below a specified price point that you set ahead of time. It runs on stop triggers, meaning that it does not become active until its trigger is available. These types of orders can help manage risk by locking in profits after an asset’s value has risen above a certain point.
In addition to market and limit orders and other special types like them, some exchanges will also offer other features such as margin trading and margin lending.
Leverage lets you increase the size of your trades and therefore increase your potential gains.
However, be careful! If the price fell by 1%, it would mean a loss of 10%. Use leverage carefully and only as part of a wider trading strategy.
Liquidity and Withdrawal Limits
You will be able to see how much money is available to buy and sell a cryptocurrency on the order book. The more liquidity on an exchange, the faster you can execute your order.
You can also withdraw funds from exchanges when you sell your cryptocurrencies. Make sure an exchange has a high withdrawal limit so you can withdraw all your coins at once if needed.
The Key Takeaways
You can check the platform’s reputation. A solid trading platform is like a good restaurant, so it is one that you can count on. If the service has a bad track record, look elsewhere.
You can check fees and commissions. Many trading platforms put their spin on the cost of trading, so it pays to know exactly how much they’ll cost you before opening an account.
You can keep an eye out for coins supported by your preferred exchange so that you don’t miss out on a great deal. You can look at payment methods available on each trading platform so that you don’t have to wait days for fiat funds to be made available or have your account frozen because it has not yet received the verification.