If you’re about to buy your first bitcoins or other cryptocurrencies, you will have to choose the best trading platform for crypto right from the start. In the first step, you should differentiate between crypto exchanges and crypto brokers.
Regardless of whether it’s a crypto exchange or a crypto broker, both are trading platforms for cryptocurrencies. However, as an investor, you should consider one significant difference.
With a CFD broker, you only trade certificates on cryptocurrencies. In contrast, you can trade real coins and tokens on exchanges. Which of these trading platforms is right for you depends on your personal preferences and strategies. Today, we would like to show you the best crypto platform for day trading. Let’s get started!
Best Trading Platform for All Crypto Currency: How to Find the Best One?
For several years, cryptocurrencies, especially Bitcoin, were considered digital play money with no real value. However, cryptocurrencies are in demand by institutional investors and are establishing themselves as a profitable investment asset.
Bitcoin is currently the most valuable cryptocurrency and is particularly popular. It has a well-developed trading infrastructure and is therefore easy to trade. The subject may seem complex and unclear at first glance for newbies, but as with any financial product, it takes a while for the first trade to work. However, investors must find the best trading platform for all crypto currency long before the first trade.
So, which platform is better for crypto trading? In particular, the increasing number of compatible trading platforms can make the entire topic complex and confusing. In addition, investors have to choose between CFD brokers and crypto exchanges. The latter can be used to buy real coins. To do this, however, users also have to deal a little more intensively with the underlying technology. Newbies, on the other hand, can rely on CFD brokers.
Which Platform is Better for Crypto Trading: Top 5 Criteria
With these 5 criteria, you can choose the best crypto trading platform for US. Let’s get started!
#1 Focus on Security
Security plays a particularly important role in capital investments. If you want to buy bitcoins or other cryptocurrencies, you should pay attention to the security of your data and investment.
That’s why SSL encryption is the minimum that every provider should meet. A 2-factor authentication in the registration process is even better. This is a great way to ensure that it’s really you.
#2 Fair Fees
In addition to security, fees also play a major role when choosing the best platform for crypto day trading. After all, high fees can have a drastic impact on personal performance. You should check provider’s conditions — especially with credit cards and alternative payment services like PayPal — to avoid unpleasant cost problems.
#3 Tradable Cryptocurrencies
Even if you only plan to buy a certain cryptocurrency, you should still think long-term. As a rule, crypto trading platforms are very specialized, so that an exchange or a diversified broker are more interested in a long-term offer.
#4 Liquidity in Trading
Investors often underestimate the relevance of liquidity. Everything is quite simple — I buy my assets there, so I can sell them again. Basically, this assumption is understandable. However, this requires sufficient liquidity. If there are too few users, the price falls sharply. However, fewer users also mean that there are fewer transactions and thus larger spreads.
#5 Minimum Deposit
Newbies only count on a small investment at the beginning. In these cases, it’s annoying when some crypto exchanges require minimum deposits of more than 1,000 US dollars.
With CFD brokers, deposits of $100 are also possible. Accordingly, these offers are also suitable for small investors.
Platform for Algorithmic Crypto Trading: Cryptocurrency Exchanges
If you’re still looking for the best trading platform for crypto, there is another way to invest in cryptocurrencies — via crypto exchanges. These are specialized exchanges that allow trading of crypto assets. Accordingly, you buy real bitcoins, altcoins, and tokens here.
This also means that you don’t acquire certificates here, but real cryptos that you can transfer directly to your wallet. To protect your own investment, we recommend that you refrain from storing it on the integrated wallet of your exchange. Use a secure hardware wallet instead. Here we can recommend high-quality Nano Ledger devices that can store multiple cryptocurrencies. A particular advantage of buying real coins is the fact that you really become the owner of a crypto.
If you’re about to find a platform for algorithmic crypto trading you should think about AlgoTrader. It’s the world’s first professional algorithmic trading solution to support automated Bitcoin trading.
If you plan to buy altcoins or tokens, you should know that most platforms don’t have a fiat gateway. Accordingly, you need to transfer your BTC to an altcoin exchange like Binance. You can then continue to act there. And you’re done!
Leave a Reply