Interest in cryptocurrencies has spread around the world. As more and more people want to participate and invest in digital currencies, the demand for good cryptocurrency trading platforms is increasing.
The number of exchanges and brokers is growing and it can be difficult to decide which one to choose when you start buying and selling cryptocurrencies. When it comes to choosing, there are certain characteristics that distinguish an exchange.
Compare crypto brokers Whether you’re buying a new car, looking for a hotel, or investing in cryptocurrencies, comparing different options is always a good idea. Popular exchanges offer a variety of payment methods, crypto, spreads, and more.
When comparing crypto platforms like Kraken vs Coinbase, you can consider these features to help you make your decision.
1. Selection of cryptocurrencies First, your choice of exchange may depend on the currencies you want to buy. Crypto selections vary between different exchanges, with some providing thousands of digital currencies, including altcoins. Some platforms only offer a dozen different currencies, so it all depends on what you are looking for. If this is your first time trading, you may want to stick with Bitcoin and maybe some other popular currencies. A platform with a large number of different cryptocurrencies could be confusing.
It may be more beneficial to choose one with more limited options. As you get more experience, you can look for a platform with lesser known coins that are new to the market.
2. Competitive rates Another important consideration is the cost of trading on a particular platform. Fees may include trading fees, commission fees, and withdrawal and deposit fees.
3. Clear user interface The trading platform should be user friendly, visually appealing, and straightforward without too much clutter, especially if you are new to crypto trading. You want the website or app to be easy to navigate and have a clear view of your funds, withdrawals and deposits, order history, and other statistics. Also, consider things like educational resources available on the platform.
4. Requesting your cell phone If you prefer to use a mobile device such as your cell phone or tablet, the broker should have an easy-to-use application available for download.
5. High security Your cryptocurrency is stored in a digital wallet for which you have a private key made up of random letters and numbers. Make sure to keep your cryptocurrency and private key safe. Some brokers offer both a cold wallet and a hot wallet, and the cold wallet acts as a backup because it is offline and therefore protected against theft and hacking. Most of the major platforms offer their merchants high security with two-factor authentication and encryption.
6. Customer service Finally, it is worth noting the importance of good customer service. Not all crypto brokers offer high-quality customer support with quick response and problem resolution. Read the notes for available help. If there are any issues with your account, you should be able to quickly contact someone to help you resolve your issue.