If you’re venturing into the world of cryptocurrency, there are a few essential things you need: a wallet to store your crypto, some basic knowledge of the market, and a trading platform. Picking the latter is possibly one of the hardest choices.
To find out which crypto exchange suits you best, you have to determine your needs. Think about your end goal and how a certain platform will help you reach it. For instance, if your goal is long-term investment in crypto, you should pick the most reliable and secure platform to store your assets. Maybe you want to start trading daily. Then you should look for an exchange with low trading fees. Before we proceed to the criteria of the best trading platform, however, let’s define what one is.
What Is a Crypto Platform?
In its simplest terms, a trading platform is a place where you can buy, sell, or trade cryptocurrencies. Trading platforms accept various coins and tokens. They all come with different fees, features, and benefits.
The first trading platform was proposed by a user called “dwdollar” on the Bitcointalk forum in January 2010. The platform was called Bitcoinmarket.com. Its users could trade Bitcoin for fiat using PayPal. However, the oldest platform that still exists is Kraken. Established in July 2011, Kraken provides its service in 190 countries and has a list of over 50 available cryptos for trading.
The concept of trading hasn’t changed. Except now, most crypto platforms provide trading services within their ecosystems, on a larger scale, and to a broader audience.
What Criteria Are Used to Rank Crypto Platforms?
There are a few essential things you need to consider when choosing your trading platform.
Crypto and Fiat Support
Check whether a trading platform supports a cryptocurrency you want to trade, as well as your local fiat currency. For example, if you want to buy Ripple, you need to find a cryptocurrency trading platform that supports it.
Exchanges charge fees that can sometimes be excessive. To avoid eye-watering transaction fees of 10%, check out the fee structure of each platform. For instance, Coinbase has a transaction fee of 2.49%. Binance charges its users from 0.02% to 0.10% for trading and purchasing crypto within the platform. Crypto exchange Currency.com, on the other hand, charges from 0% to 0.075% trading fees, depending on the crypto.
Some trading platforms don’t charge fees on your initial purchase, but do on withdrawals. Make sure that the service’s policy is displayed transparently.
Most trading platforms require identity verification. This procedure usually consists of several stages: submitting your personal info, uploading your ID document, and the review process. Sometimes, you have to undergo facial verification as well.
The review process can last from half an hour to seven days. Platforms that care about their customers won’t make you wait long and will inform you in case of any issue.
Features, Functionality, and Benefits
There are trading platforms that only allow you to buy one currency, such as Ethereum or Bitcoin. Most offer margin, futures, and peer-to-peer trading. Some also have interest (yield) or staking options. The more cryptocurrencies and trading options available, the better.
If you are a newbie, look for platforms that offer training modes with demo accounts and fake money, such as BitMart. You should make use of this to familiarize yourself with how everything works.
Lastly, some exchanges, such as Coinbase, have come up with free crypto in return for completing short quizzes. These benefits are exclusive to a specific platform and can help you grow your portfolio without spending a penny.
You can use a browser to access most trading platforms. However, some also offer desktop apps for a more comfortable experience.
With a desktop app, you don’t need to log in to your account each time. You can use a shortcut or scan a QR code (if you prefer a more secure option). You also don’t need a browser. Hence, you eliminate all browser-related threats. Before you download any desktop application, though, ensure it’s from the provider’s official website.
In essence, web terminals are marketplaces where you can buy, sell, and monitor the price of a particular token. The most distinctive feature of a web terminal is live price charts, which enable traders to check the coin’s price fluctuation over a certain period. Users can also see green and red candles on the chart. A red candle means that a coin is losing its value. If more people invest in it and its price rises, the candle turns green.
Web terminals are equipped with useful tools meant to simplify your trading. You can trade multiple assets at a time, enable trading signals (Stop Loss and Take Profit) that help you lower risks and automate the process, analyze the market, customize the interface, and much more.
Popular Trading Platforms
There are four crypto trading platforms you need to be aware of in 2023.
With the support of over 2,000 tokenized assets, Currency.com is one of the fastest-growing crypto platforms on the web. It welcomes clients from over 180 countries and can be accessed from pretty much anywhere in the world. Currency.com is a secure KYC and AML compliant crypto platform that is transparent and easy to use.
The crypto exchange offers detailed charts, instant price alerts, 75 technical indicators, negative balance protection, and a demo account.
You can easily access Currency.com from a browser on your PC or mobile device. The crypto platform also has its own apps for iOS and Android users that have got many positive reviews from traders worldwide. If you sign up, you have the opportunity to claim a 50 USD.cx Welcome Bonus.
Coinbase and Coinbase Pro
Coinbase has become home to many retail investors. It offers a wide selection of cryptocurrencies, as well as free crypto for taking quizzes. It’s also easy to navigate. Coinbase has desktop and mobile apps with a free wallet.
Experienced users of Coinbase should consider Coinbase Pro. The Pro version offers extra functionality, such as limit order and stop order, unlimited trading volume, lower fees (0% to 0.50% per transaction), and advanced charts.
Binance is compatible with various operating systems and supports more than 55 assets. You can trade your crypto for a wide range of local currencies. It also scores highly among users, with an average 9.9/10 rating, according to CoinMarketCap.
Until recently, Binance was considered the undisputed king of crypto exchanges, but it has consistently failed with regulators, leading to it being banned in the UK and the US.
Huobi operates in pretty much the same way as Binance. It supports 20 fiat currencies and has a huge range of cryptos to trade. Unlike Binance, Huobi has managed not to attract negative regulatory attention and operates freely in most countries worldwide.
No crypto trading platform is perfect, and there is no single platform that is ideal for every investor. As you get accustomed to the crypto world, you will learn that your preferences are likely to differ from other traders. It is crucial to think about your goals and then pick the platform that most closely matches them.