6 Important Tips for Choosing the Best Cryptocurrency Trading Company
Cryptocurrency trading has become one of the most popular investment options because it’s enthralling and exciting for those who love taking risks and also those who love to explore new options. Crypto trading is also lucrative since if you do it correctly, you can earn a huge wealth. All this is possible if you find a right crypto trading company. Here are a few useful tips to find one.
1. Safety, the Most Important Point to Consider
The first and foremost thing to do is to check what security protocol the company is offering. It’s obvious that you should choose a secure and legitimate platform like Moefel. This is the best Bitcoin trading company which is a licensed in Australia having a trading volume of around $6.8B per month. It’s regulated by the FFMS (Federal Financial Markets Service) and you can check their registration number and license. So, you don’t have to have any doubt. This kind of transparency should be present when you decide to deal through a crypto trading company.
2. Method of Purchase
This varies from platform to platform. Some platforms need to you do deposits through bank transfer, while others want you to use PayPal, some others accept debit and credit cards and still others use cryptocurrency for purchases.
If, before joining a trading company, you don’t have any cryptocurrency, you should choose a company that accepts fiat currency and that will enable you to enter the market. Don’t forget to understand how long it takes to complete purchases. Some companies process transactions almost instantly while some others can take days or even weeks.
3. Supported Currencies
Most crypto trading companies support Bitcoin and Ethereum. But these two currencies are only the tip of the iceberg of crypto trading. The number of supported crypto currencies also varies from company to company, as some companies support a long list of currencies while some support only selected 3-4 currencies.
“Stable coins” is a great way to further balance your bets. These are usually used by traders to evade the volatility typical to crypto markets.
Irrespective of your risk appetite, be sure to choose a company or companies that support almost all of the cryptocurrencies that you want to trade in. Metrics, including market cap and 24-hour volume, have an influence on exchange rates and you should monitor them.
4. Trading Platform, Broker or P2P Exchange
While investing online, it’s important to choose among the types of cryptocurrency exchanges, which are three:
- Trading Platforms: These are the most common and are marketplaces where you can place buy and sell orders for cryptocurrency. Every user interacts with the platform. Each transaction is done for a fee.
- Broker: Cryptocurrency brokers operate the same way forex brokers do. They set prices and you can buy cryptocurrencies via the platform.
- P2P Exchange: This connects buyers and sellers so that both can directly interact and agree to any given transaction. P2P exchanges help reduce network crowding and maintain a trustless, secure system for the exchange of cryptocurrencies.
5. Fee Structure
Fee structures and transaction fees vary across different exchanges, which is crucial while selecting a crypto exchange. Discounts are offered by some exchanges typically when their own token is used to complete transactions. It may depend on the number of tokens held. Others charge only a transaction fee on sales, allowing purchases without a fee.
6. User Experience
For an average cryptocurrency investor, user interface as well as functionalities are some of the most important aspects to consider. Whether you are a beginner trader or a pro, an instinctive interface and pleasant user experience make your actions on the exchange to be more efficient and informed.
User experience is personal and various people will find different interfaces pleasant. However, trading companies like Moefel with the best user experience typically see the fastest growth in transaction volume.
Thus, various considerations are important while selecting a crypto trading company. Just try to gain maximum knowledge and choose a company that will be profitable to you in the long run.