Despite the market volatility and restriction on its regulation, the price of Bitcoin and other Cryptocurrency is constantly on the rise. With Bitcoin’s price constantly being close to >$50,000, Cryptocurrency makes quite an appealing investment.
A digital exchange platform is the only gateway to get access to digital currencies. Crypto trading platforms play a significant role in keeping your investment safe and secure.
But, with hundreds of exchange platforms popping up every day, choosing a suitable trading platform to make your investment can be a daunting task.
However, asking the following questions ensures you get hold of a trading platform that compliments your news.
Question To Ask Before Using A Crypto Trading Platform
Choosing the right exchange platform is one of the most vital steps. It helps you invest smartly in Cryptocurrencies, and the right security protocols keep your Crypto assets safe and secure.
Here are the questions that you need to ask.
Q1. What Payment Method Can Be Used?
First thing first, what payment methods you can use to buy Cryptocurrency. While some platforms have a PayPal gateway, some solely depend on bank transfers. Therefore, you must carefully filter out the platform that caters to the right payment gateway.
If you are comfortable using a bank account to make payments, almost every trading platform will do it for you. However, if you are looking for more discrete solutions like PayPal and Venmo, you need to look for relevant trading platforms carefully.
Q2. What Currencies Do The Platform Include?
Do you already know which digital currency you are interested in? There are more than 6000 Cryptocurrencies as of date. A single platform cannot accommodate all the currencies. Hence, it is important to do proper research to find which Cryptocurrency the respective platform offers.
Although there are thousands of trading platforms, only a few of them will serve you with the services. With that being said, if you want to invest in Bitcoin or Cryptocurrency, bitcoin evolution might be a great choice.
Q3. What Fees Do They Charge?
It is important that you are the commission charge of the trading platform. The last thing you would like to experience is paying all your Crypto profits in commission fees.
Before you start trading, go through all the paperwork to see their charges and whether their charges vary depending on the market.
Q4. How Effective Their Customer Support System Is?
The only downside of working with technologies is that you will encounter problems, especially when working with new technologies. Not being able to get issues sorted out effectively is one of the major concerns of the Cryptocurrency trading platform.
You just ensure that the trading platform you are working with has an active customer support system with a reputation for solving traders’ problems as soon as possible.
Q5. What Are The Transaction Limits?
Are you planning to move a lot of money into Cryptocurrency investment? If that is the case, first understand the transactional limit. Some platforms come with a transactional limit which restricts the trader from moving large money with a single transaction.
Whether you want to invest in Bitcoin or Ethereum, you need to find the right platform that matches your needs. For instance, if you are using Bitstamp, once you cross the threshold of $10,000, you will be asked for all your details for every transaction.
Final Question: How Easily Can You Sell Your Assets?
This question is crucial. It defines the true value of your asset. There is one word you need to emphasize: Liquidity. The best exchange platform will have enough traders who will continuously take part in buying and selling action. The higher the frequency of the trade, the higher the liquidity rate of the platform.
The liquidity of any platform indicates the ease of buying and selling any Crypto asset. Therefore, look for a platform that caters to a large pool of traders and investors to maintain a healthy ratio of buyers and sellers.