Since cryptocurrencies were introduced, the digital economy has experienced quite a dynamic shift. A lot of people are gradually learning about cryptocurrencies. With more people interested in the digital economy, there was a need for trading platforms where investors could exchange their cryptocurrencies for others. There are several platforms that have since sprung up, helping a lot of investors in the process.
However, despite all the trading platforms coming up, it is important that you find one or a few that are reputable and reliable. At Coincheckup we believe that a good trading platform should make you feel confident about your investment. For many investors, making the right choice is not usually an easy task given all the trading platforms available. The developers behind these platforms are careful enough to make sure they design amazing user interfaces to ensure that you can get easy access to the platform.
Every investor has unique needs and requirements that must be met in any trading platform. One thing you will realize if you sample a few of the trading platforms is that all of them cannot meet all your needs at the same time. It is, therefore, important that you find one platform that meets your most important needs. To do that, you have to look at the features inherent to each platform and compare it with what you hope to get from a reliable investment platform.
Features of Quality Investment Platforms
With all the alternatives available for trading cryptocurrency, there is so much you need to look at before you settle on the best platform for your investment. Below are some of the most important features you should consider:
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Safety and Security
You must treat this as you would any other investment, especially in the traditional money market. All the precautions that you take when investing your money in the forex market or trading in shares at the stock exchange will also apply when looking for a reliable trading platform for cryptocurrency.
The good thing with most of the exchanges today is that they shored up their security so you do not have much to worry about. A secure trading platform will have an SSL certificate. When you visit their platform, the website URL should have an HTTPS. For someone who is not tech-savvy, this is to protect your personal data from hackers.
There are many unscrupulous individuals online who prey on unsuspecting users and trading platforms that might not have the best security features so far. Other than the security measures that the trading platforms put in place, you should also be careful about your user information. You must make sure you only log into your accounts from trusted computers, and sign out of your account when you are done with the session.
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2-step Authentication
Any serious organization that holds user accounts today will have 2-step authentication to protect user accounts. The benefit of 2-step authentication is that even if someone has access to your access credentials, they must go one step further and have your mobile phone too, because each time you sign in, you receive a message on your phone as an additional layer of protection.
All of the major companies like Google and Dropbox are using 2-step authentication today, so it is more of an industry-standard in account security. Therefore, this is one of the features you must look for before you invest your cryptocurrency in any platform.
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User Reviews
User reviews tell a different tale from what the company might want you to believe. Remember that these companies are businesses and they try to market their services accordingly. The best way to know more about a trading platform is from the perspective of users who have invested with the company too.
There is a lot of information you can deduce from the user reviews. First, you will know about the overall trading experience that each user had. This tells you whether your investment is safe here or not. How long do they take to process your funds?
Another important lesson you will realize from the reviews is whether the platform has been hacked before. Platforms that have suffered more than one hack are not worth your investment. However, there is a lot you can learn about the hacks too. How did the company respond to the hack? What did they do to prevent similar cases in the past? The fact is that the majority of the trading platforms have been targeted for attack in the past, some successful, and others unsuccessful. According to the GDPR regulations, organizations that have been victims of a hack are required to inform their users as soon as possible.
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Coin Liquidity
If there is one thing you need to look for in a reliable trading platform, it is the coin liquidity. You need a platform that handles a high volume of trades. This also means that they have high asset liquidity. A platform that has a high liquidity is a good place for your investment. This is because they have sufficient assets being traded on their platform.
At the same time, look at the trading pairs that are available for investors. In this case, a lot of people focus on the major trading pairs, like ETH/LTC, BTC/USD, or BTC/ETH. This is okay, since these are the main trades that many investors perform. However, a good platform should go beyond the ordinary. Do they also support rare currencies? Make sure you confirm whether the trading platform handles the trading pairs that you are interested in.
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Payments and Commissions
How much commission are you paying the platform? This is one of the features that you should think about when looking at trading platforms. As a rule of thumb, try and look for low commissions. This way, you save more on each trade. However, it is also important that you understand the terms and conditions applicable to the fees and commissions.
What payment options are available? This is an important consideration because you need payment options that are relevant to your region. Traditionally, many trading platforms support wire transfers, credit and debit cards. However, you can also benefit from those who include PayPal, Skrill and other digital payment options.
