How to Choose a Bitcoin Trading Platform: A Comprehensive Guide
- Written by NewsServices.com
Bitcoin trading platforms have been in the news a lot recently. The cryptocurrency’s volatility and sky-high prices have attracted many new investors, many of whom are actively looking for the best bitcoin trading platform to meet their needs. Unfortunately, because there is no “standard” bitcoin trading platform, making comparisons between different exchanges can be difficult.
This article will look at what you should consider when choosing a bitcoin exchange or online marketplace.
Let's take a look at these factors.
KYC on Crypto Exchanges
Know your customer (KYC) is an anti-money laundering (AML) regulation requiring a cryptocurrency exchange to know their customers. While most of the world embraces cryptos, the United States still forbids anonymous crypto trading.
They require traders to give up their name/address/social security information to be regulated and taxed by the IRS. Bitcoin Code is among the leading exchange platforms you must choose for trading bitcoin.
Currency and Mode of Payment Accepted on Crypto Exchange
Bitcoin is an online currency and payment system introduced in 2009, and it has since then increased in value exponentially. According to investment bank Goldman Sachs, the price of bitcoin could rise as high as $3,900.
While this new form of digital cash is becoming more popular daily, some are looking for international companies to accept traditional forms of payment for their products or services.
Trading Features on Bitcoin Exchange
When it comes to trading features and what you can do with your bitcoins in various functions such as placing stop-loss or taking profit orders. Most traditional bitcoin exchanges such as Coinbase will not offer advanced trading options such as margin trading, leveraging one's balance for increased profits.
This can be confusing for new investors who might want to start small and buy and sell their coins without having to worry about getting the best bang for their buck when it comes to services and fees. If an exchange offers advanced trading options such as margin trading, this indicates that the company is more experienced and might even be regulated.
Financial Services Offered by Crypto Exchanges
One of the reasons cryptocurrencies became so popular is because they allow for quick and anonymous (or as close as you can get to it as part of a decentralized system) transactions. Most exchanges provide trade services, which means that you do not directly own the coins you're trading; instead, they are stored by the exchange itself on your behalf.
Bear this in mind before depositing large sums into exchanges - if the exchange gets hacked, you'll most likely lose all of that money.
The Bottom Line
You should always be aware of your primary concerns before selecting a bitcoin trading platform. If you're mainly concerned with security, go with a long-standing and reputable company that uses cold storage and doesn't use an offsite hot wallet.
If mobile access is more important to you, make sure the platform offers it. Also, consider things like customer service availability and if there's enough liquidity to suit your needs.
Daily Bulletin
