How to select cryptocurrency trading platform

Guide: How to Find the Best Crypto Trading Platform

In this article you will learn how to determine what is the best Bitcoin trading platform for you.

There are a few things you need to consider before you select your cryptocurrency trading platform. Go through all these attributes and mark what you believe is most important to you. 

After this, go through our reviews and check what platforms fulfill your requirements. If you do this carefully you’ll save a lot of time. 

However, there’s nothing wrong with changing your trading platform if you find out you weren’t satisfied with your selection.

In this guide we will tell you what to look after when you are about to choose a Bitcoin trading platform for yourself. But, if you rather prefer a list with trading platform reviews you should go to our page with the top Bitcoin trading sites.

Guide: 10 steps to determine what is the best Bitcoin trading platform?

 

  1. Fiat Deposit Methods and Fees
  2. What countries and regions are allowed to sign up?
  3. Reputation of a Bitcoin Trading Platform
  4. Customer Support on Bitcoin Trading Platforms
  5. Verification Pros and Account Security for Crypto Trading
  6. Crypto Exchange and Trading Fees
  7. Bitcoin Trading Apps
  8. Trading Volume, Liquidity and Spreads
  9. Regulations, Licenses, Insurances
  10. Trading features

1. Fiat Deposit Methods and Fees

One of the most important things for a crypto trading platform is that you are able to deposit fiat currencies that you can exchange for cryptocurrency when you want to start trading.

If you already hold cryptocurrencies on another platform this is obviously not important to check.

Check that the deposit method you want to use is available for the trading platform. You can always save a few percent here if you can use bank wire or SEPA instead of credit card deposit

While credit card deposits usually are associated with fees around 2-4%, there are often FREE alternatives with bank wire deposits and SEPA deposits.

However, bank wire takes a few extra days compare to credit card. This is a onetime fee and is not considered as a very important parameter. 

Also, make sure the platform offers your deposit method if you’re limited to a certain deposit method.

Common Fiat Deposit Methods on Crypto Trading Platforms

Most common fiat deposit methods and fees

  • SEPA (Bank transfer in EU) Fee: Free
  • Wire Transfer (SWIFT). International bank transfers. Fee: 0-$35
  • Credit/Debit Card. Worldwide. Fee: 2-4%

2. What countries and regions are allowed to sign up?

Many crypto trading platforms are regulated and licensed in specific jurisdictions. For example, US customers are not allowed to sign up with ByBit and Binance while Coinbase and Kraken are US based and regulated in the US. 

Also, some crypto trading platforms doesn’t have any official list what citizens are allowed to sign up. Examples are Kucoin and Binance.

At the same time some crypto trading platforms are very specific about what countries they allow

For example

ByBit states

Bybit does not offer services or products to Users in a few excluded jurisdictions including the United States, mainland China, Singapore, Quebec (Canada), North Korea, Cuba, Iran, Crimea, Sevastopol, Sudan, Syria or any other jurisdictions in which we may determine from time to time to terminate the services at our sole discretion.”

Also, Kraken is very specific about what countries are eligble to sign up with the crypto exchange and trading platform.

3. Reputation of a Bitcoin Trading Platform

Reputation and rating woulds be considered as one of the most important parameters to look at. It’s preferable to see what users like and dislike with the platform. Also, make sure that the rating is relevant to your criteria. 

For example, if the reviewer experienced that the mobile platform was too slim and had to few trading features it might not apply to you if you ‘won’t use the mobile platform for your trading.

Some examples are:

4. Bitcoin Trading Platforms - Customer Support

Hopefully, you won’t have to interact with the customer support. However, if there are any problems it’s always nice to have 24/7 support with telephone, email and chat. Via chat they usually solve your issue immediately. 

This isn’t very important but make sure there aren’t several traders that have been waiting several weeks for support as was the case with Coinbase for some time.

The support can be hard to try before you sign up since it can only be reached when you are signed in. However, if you have any questions that you can’t find in the FAQ or on a review site like this, you should sign up with an email and try to reach the support before you commit time to do KYC and deposit funds.

The most common alternatives for customer support are bot chat, live chat and submit a request. Email support is not very common anymore.

5. Verification Process and Account Security

The personal verification process and features to secure the account are important features.

All the large trading platforms will ask for a verification procedure nowadays. Here, you will find different requirements for different daily withdrawal limits.

Verification Process

For the personal verification process, be prepared to show documents such as

  • Phone number
  • Government Issued ID (Passport or Driver license)
  • Proof of Residence (utility bill, credit card statement, lease agreement or mortgage statement)

Account Security

For the personal account security you have a personal responsibility but you should also request technical features to help you out

Some features you might want to check are

  • Two-Factor Authentication (2FA) for login
  • Two-Factor Authentication (2FA) for withdrawal
  • Whitelisted IP
  • White listed withdrawal addresses

6. Crypto Exchange and Trading Fees

Trading fees and spread are very important in the long run. Especially if you’re a high frequent trader with large amounts of trading capital. This can be the difference between a winning trader and a losing trader.

If you’re a long-term investor with a few trades per month and a small amount invested you don’t need to consider this at all. We have an article about crypto trading fees where we have identified the crypto trading platforms with the lowest fees.

Exchange fees are probably more important than deposit fees since you will do more exchanges than deposits.

There are also a lot of different trading fees you should be aware of. There are maker and taker fees, spot trading fees, margin trading fees, margin borrowing interest rates, futures trading fees.

In addition, there are different fees dependent on what your trading volume was the last 30 days. You can read more about different fees in our article about Binance fees.

7. Bitcoin Trading Apps

If the cryptocurrency trading platform offers their features in a mobile app, this can be very important. You should consider if this needs to be updated and have the availability to trade or at least check the status of your trades from a mobile app.

Also, you need to compare the different mobile trading platforms and what features and functionality they offer. Sometimes the mobile version is stripped. Binance have create two interfaces for the Binance Android and IOS app. Here, you can easily switch between the Binance Lite version and the Pro version.

8. Spreads, Trading Volume and Liquidity

Liquidity is very important since it will reduce the bid/ask spread. This is also very important for high frequency traders with large amounts of trading capital. You want high liquidity since this will reduce the spread and increase your profit. 

However, if you do long- term trading with low frequency this isn’t very important to consider. Just make sure there’s some liquidity in the market, otherwise you probably will pay unnecessary high price for your trade.

Where to see crypto trading spreads?

You can check crypto trading spreads per trading pair on Coingecko.

  • Go to Coingecko
  • Search for you cryptocurrency and click on it
  • Click on the markets tab
  • Here, you will find a column with “spread”

Where to see crypto trading volumes?

You can check crypto trading volumes in different ways. Here, are two alternatives

Check the trading volume for a specific trading pair

  • Go to Coingecko
  • Search for you cryptocurrency and click on it
  • Click on the markets tab
  • Here, you will find a column with “24h trading volume”

Alternative 2 is to check the trading volume per exchange. 

  • Go to Coingecko
  • Click on the exchanges tab
  • Go to “Spot”
  • Click on the markets tab
  • Here, you will find a column with “24h trading volume”

Where to see crypto trading liquidity?

You can check crypto trading volumes in different ways. Here, are two alternatives

Check the trading volume for a specific trading pair

  • Go to Coingecko
  • Search for you cryptocurrency and click on it
  • Click on the markets tab
  • Here, you will find two columns “+2% Depth” and “-2% Depth”

These two columns tells you how much capital is needed to move the price of the specific cryptocurrency 2%. If the number is large, there is good liquidity. If the number is low, there is low liquidity.

Liquidity can be very important to check if you are about to invest medium or large amounts into a small coin.

9. Regulation, Licenses, Insurance, Custody and AML

Security, anti-money laundering and know-your-customer will be more common in the cryptocurrrency trading space. All platforms seem to move towards to integrate this for the platform and the governments also increase the demand for this.

Read more about this topic in safe crypto trading platforms.

10. Bitcoin Trading Platform Features

There are many different cryptocurrency trading features to select among. You must understand what trading features you think is most important. We list some popular crypto trading features here

  • Margin Trading (leverage trading)
  • Futures trading
  • Beginner-Friendly
  • Many cryptomarkets
  • Staking possibilities

Summary Guide: How to find the best crypto trading platform?

In this article we explained the 10 most important parameters to consider when you select your trading platform. It’s impossible to weigh in all parameters for yourself. You need to decide what 3-5 factors are most important among those 10 and then go ahead and find your trading platform. It’s an important work so take your time. However, it is very easy to change platform and test several platforms before you find the best for your trading demands. 

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