(ThyBlackMan.com) The craze of Cryptocurrency is on the rise, and it doesn’t seem to stop. This explains why these currencies are getting more valuable by the second. If you want to try your luck with these coins, you better search for a reliable trading platform first.
Following, we will suggest the important qualities you should look for in a cryptocurrency platform to avoid being scammed.
Method of Purchase
This differs from one platform to another. You can buy crypto with credit card, debit card, via bank transfer, or even with PayPal. There are a few examples where the platform only accepts cryptocurrency as a form of payment.
Therefore, if you don’t have any digital currency before you join the exchange, then you better choose a podium that takes fiat currency and allows you to enter the market. But before you do, notice how the platform handles purchase.
Some platforms make the transaction instantly while others need days or even weeks.
What is it?
There are three types of exchanges that work with cryptocurrency. These are:
P2P Exchange: This is a platform which connects buyers and sellers to interact directly, and agree on the transaction. This mitigates the network congestion while giving a better sense of security.
Trading Platform: These are more common. This is a marketplace where users buy, sell or even place their order for the cryptocurrency. Users only interact with the platform, and they are charged a fee for each transaction.
Broker: These are no different than Forex Brokers. They are responsible for setting prices, and the buyer can easily purchase via the platform.
Security
This is another important element you should mind. Do your research and ensure you trade via a legitimate and well-secured platform. There are numerous cases of hackings, take them seriously and search for the highly secured platform. Look into their security protocols and compare the best.
Thanks to ever-rising pump and dump schemes, the hacks are at their peak. Therefore, it is the responsibility of the exchange to place measures which will fight off these frauds or hacks. So don’t be too quick to trust.
Supported Currency
You should know Bitcoin isn’t the only cryptocurrency available today. It’s just the tip of the iceberg and widely popular currency. There are other valuable examples like Litecoin, Altcoin, etc. Therefore when you look for best bitcoin trading platform, you need to find what currencies it support
Many platforms only trade in one cryptocurrency while others support almost every out there.
Like we said before, find out whether the exchange deals in fiat currency as well or not. This can be important for many people, especially who are trying their luck with crypto for the first time.
User Experience
User experience and functionality is another important quality you should look. Consider most users are first time traders, it is important that the company employs an easy to understand and use interface that helps the user to make well-informed decisions.
The only way an exchange can boost its number of users is through great user experience. So be on the lookout.
Staff Writer; Steve Baker
