How to choose a good crypto platform?

Success in the cryptocurrency world can depend on a number of parameters. Among the factors that can help you succeed in cryptocurrency trading, some of the most important are: studying the fundamentals of financial markets, mastering trading tools, following financial news, timing or even luck.

A parameter that is sometimes underestimated by investors is the fact of using a powerful trading platform. In the world of cryptocurrencies, this is something that is even more important than in traditional finance.

The world of cryptocurrencies is a much less regulated industry than the traditional stock market and is an area that attracts many new investors, often young or inexperienced. A number of internet players try to take advantage of new traders’ lack of technical knowledge. The internet is full of scams of all kinds and unscrupulous or poor quality platforms. Selecting a quality cryptocurrency trading platform will greatly increase your chances of success. What should you look for first in order to choose a good crypto platform?

A platform must be 100% secure.

cryptographic security

Among the criteria to look at when choosing a crypto platform, the most important is undoubtedly security. You should first make sure that the platform you are going to use is a recognized platform with a large user base and, ideally, has been around for several years. If you are using a platform that is little known, has few members or was recently created, it is much more likely that it is a scam, although this is not always the case. There are of course innovative platforms being created every day that can delight investors, but you already need to have some market experience to know how to spot interesting projects or offers off the beaten path.

There are also platforms that are perfectly fine legally but charge you huge fees or offer you low quality service. You must inform yourself about the services offered by the platform you will use.

Offered services

secure cryptocurrency

Before you start trading, you need to think about your strategy. Some platforms are excellent for investors who like to take risks, for example by investing in futures or futures. This type of investment can bring a lot of money but it is also very risky. Remember that in the cryptocurrency world as in traditional finance, high upside potential is often synonymous with high risk.

Some platforms specialize in this type of investment and can be great for experienced investors or day traders but they won’t be right for you if you just want to learn the world of cryptocurrencies little by little. In this specific case, a platform like eToro could be a good option for you since it is a social platform, with a very large audience, where you can trade with other traders, get inspired and even copy their strategy using CopyTrading. eToro is also a platform that offers assets other than cryptocurrencies, however, the platform offers a variety of digital assets and limited functionality compared to other platforms. For example, if you want to invest in liquidity pools or Decentralized Finance (DeFi) strategies, you will probably prefer to use a platform that specializes only in cryptocurrencies, such as Immediate Edge.

Look at the laws of the country of the platform

Before choosing a platform, you should also ask yourself which country it is based in. It is by no means the same thing as using a platform based in the United States, which in many cases will collect data about you and have a legal obligation to disclose it to the United States government when necessary, if to use a platform based in the British Virgin Islands. or a decentralized trading platform (DEX). Decentralized exchanges are blockchain-based and no one will charge you a fee for using them. You will only have to pay the gas taxes of the blockchain on which the DEX is based. However, you won’t have access to a customer support team like in a centralized exchange.

There are some regulations in the blockchain world and depending on the country where the platform you are using is located, you will be able to access different services.

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