Knowing when to invest in cryptocurrency could yield significant results For instance, Ripple rose as much as 5 times in a matter of few days last December. Bitcoin followed a similar trend and so did other popular crypto coins like Ehterium and Litecoin. If you had invested in any of them when the markets were low, you could have made significant gains.
Cryptocurrency gains are huge, and even in the Forex work, we see that a large number of Forex and CFD traders are beginning to rely on the power of blockchain to improve their returns.
Online brokers are ready to add cryptocurrency assets to their list of services. The only thing holding them back is the inability to find a trustworthy cryptocurrency trading platform.
The question though is, how do you know what is the right cryptocurrency trading platform for you?
With a large number of exchange platforms available, it could get difficult for brokers to select one. The chance of getting into business with a fraudulent platform also discourages brokers. If you are worried, don’t – we will walk you through what you need to choose the right cryptocurrency platform.
The 7 Things You Need to Think About When Choosing the Right Crypto-Currency Platform
There are a number of parameters one can judge a cryptocurrency trading platforms by. Whether you are a broker or a client, keep the following seven factors in mind when you are choosing a platform:
Ease of payment:
A good cryptocurrency trading platform must have provisions for smooth financial transactions. Since cryptocurrencies do not function like traditional money systems, you need to be careful about what you are offering to your clients. You have to depend on third-party wallet services which can often be problematic. Users do not have the time to enter complicated addresses along with their keys for one single transaction. Moreover, the majority of them do not have the technical skill to work with these systems.
You must choose a platform which offers an automated wallet payment tool that can be integrated with your services. The cryptocurrency payments will then be in a closed circle, and there will be no delays. As a broker, you will find that a fully integrated payment system will lead to better conversion rates.
Do not settle:
Brokers know that customers always want steady assurance that their orders will be fulfilled no matter what. Cryptocurrency prices are volatile and can change any second. However, it is difficult to be objective when it is your money at stake. You need a risk-free service with assured returns.
Liquidity is a major factor that you have to consider. Brokers need to choose the best cryptocurrency exchanges and integrate them so you can get assured liquidity. Having multiple liquidity providers can help in fast order execution so that you are never left frustrated. Unless a trading platform meets the demand of your clients, business will be a failure.
One of the major advantages of cryptocurrency is that it can be tracked, unlike fiat bank transfers. The latter will not allow you to know where and why a payment is stuck, but digital currencies do. Their advanced auditing and tracking system works with the help of a decentralised ledger which can record ownership data. All transfers can be easily viewed on the ledger at any point. You can be aware of the location of the funds at all times. This system also allows you to know how long a transaction will take to complete. Finding a platform with a high degree of transparency will turn out better for you in the future.
When you are engaging in cryptocurrency exchange, you must look out for your own security. Unless you know that your money is safe from third-party hackers, you will not feel at peace. You should try to find out if the exchange platform you like has ever been hacked before. Look for a platform that updates its security provisions regularly, so you do not end making any bad choices.
Ideally, you should choose an exchange platform that uses an authentication process when someone tries to log in. If the system can identify you every time you log in, that adds an extra layer of protection.
Check for technological advancement:
No trader is willing to get margin called because they failed to close an order due to login problems. The important thing to remember about the cryptocurrency market is that it is always in motion. Prices are going up and down all the time irrespective of geographic time zones. You should have full-time access to the market if you want to make the best of sudden opportunities.
A stable cryptocurrency platform will make sure that you never have to worry about open trades again. Whether you are a broker or a user, you must be receptive to emerging technology and go with a platform that constantly updates itself.
Whenever you hear the word cryptocurrency, you think of Bitcoin. But the truth is that there are many other digital currencies emerging as well. If you want more profit and investment opportunities, you should be aware of all of them.
Usually, most platforms offer exchanges involving Bitcoin and Ethereum. When you are choosing a platform, make sure that it offers a wider variety of coins. If you really want to be successful in trade, you must diversify. The blockchain is growing at an incredible rate, and you should take advantage of it in as many ways as possible.
Margin trading became a popular concept with the rise in forex and CFD contracts. Since the cryptocurrency market is volatile, there is always a chance to increase potential returns with the help of leveraged trading. A good exchange platform will provide everything you need for your risk appetite. Unless you take the occasional big risk, you will fall behind. Look for a platform that comes with margin trading features so you can be flexible when trading.
If you remember checking for the above-mentioned pointers, you will end up with the perfect cryptocurrency trading platform for yourself. Do not take the final call without doing thorough background research.