How to Select the Best Cryptocurrency Trading Platform?
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.
10 STEPS TO FINDING A PERFECT TRADING PLATFORM
- Check Deposit Methods, Fees and Minimum Deposit
- Look for Demo account and Education
- Check the Reputation and the Rating
- See what Customer Support availability they offer
- Regulation and Verification for crypto trading
- Security, AML and KYC
- Trading Fees and Spreads – Advanced trading
- Liquidity in the cryptocurrency market – Advanced trading
- Cryptocurrency trading app – Advanced trading
- Trading features – Advanced trading
1. Check Deposit Methods, Fees & Minimum Deposit
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 instead of credit card deposit. 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. However, make sure the platform offers your deposit method if you’re limited to a certain deposit method.
2. Look for A Demo Account & Cryptocurrency Trading Education
If you’re unsure or a complete beginner we recommend to start with a demo account and go for the platforms that offer free education such as eToro, Avatrade or Markets. Demo accounts and education are very important for beginners. With demo accounts you can click around and test the different trading instruments and trading tools so you’re comfortable with the platform once you deposit money into a real account. For new traders this is highly recommended.
3. Check the Reputation and the Ratings of the crypto 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.
4. 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 Poloniex for some time.
5. Regulation and Verification
Regulation and verification go hand in hand since regulated trading platforms have harder policies for AML and KYC. Therefore, more regulated trading platforms almost always require ID verification already upon start trading. Some platforms request ID verification before withdrawal but not for trading.
6. Trading Fees and Spreads
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.
7. Cryptocurrency trading app
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.
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.
9. Security, AML and KYC
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.
10. Trading features
There are many different cryptocurrency trading features to select among. You must understand what trading features you think is most important: leverage, margin, demo accounts, free education, free signals, stop loss, negative balance protection. Read our review to compare the trading features.
Conclusion - How to Select the Best Cryptocurrency 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.