The Complete Guide to Choosing Bitcoin Trading Platforms for Beginners
It’s impossible to ignore the buzz about cryptocurrency.
But if you’ve not dabbled in this investment before, some methods and terminology can sound a little confusing. And there are nearly 20,000 different platforms to choose from, so you’re probably wondering where to start!
Here is a short guide to help you. Here, we’ll explain the most important factors to consider when choosing Bitcoin trading platforms for your investments.
Research Fee Charges
When trading with Bitcoin on a platform, you’ll incur a transaction fee. A few platforms will also charge an additional fee when withdrawing your money. These fees add up, so always do your research before selecting a platform.
When comparing platform fees, look at whether they offer flat prices or a percentage of a transaction. That will help you determine the cheapest option depending on the size of the money you want to trade.
A flat fee will be better if you want to invest thousands of dollars. But if you only plan on trading tens or hundreds of dollars, a small percentage fee will probably be cheaper for you.
Unfortunately, as with most aspects of the internet, when money is involved, there are scams out there you’ll need to avoid. So checking out a platform’s reputation is essential before you hand over your money.
Take a close look at their business model and find out the names and backgrounds of those on the management team. Read reviews on places like Trustpilot and other reliable sources.
Some of the biggest platforms will often get featured on trusted news websites like Forbes or the BBC, so check those places to obtain background information before investing.
To fulfill the maxim, around which Crypto works i.e. the democratization of the cryptocurrency, one must ensure that the blockchain or the currency is raised above the individual. For this purpose, investing crypto in a trust is the most sought-after option.
Ease of Use
Cryptocurrencies are a complex subject to grasp when you are starting. But trading platforms can make that easier using video tutorials and a user-friendly dashboard.
There are two ways to figure out if the platform is user-friendly. First, read through customer reviews for feedback. Secondly, test the platform for a few weeks with a small trade before making a long-term decision.
One simple, beginner-friendly option you might want to consider is a Bitcoin ATM, such as Bite Federal. Their machines work similarly to regular ATMs. They will be familiar to most novice investors.
You’ll want to know your money is safe in a secure Bitcoin trading platform!
So you should look for a platform offering the most cutting-edge security protocols. That should include platform-wide security to protect money as it moves from system to system.
It should also cover your account security to protect you from security threats such as hacking and phishing. Most modern platforms offer multi-factor authentication.
Platform Insurance Funds
Some cryptocurrency platforms offer customers insurance when investing.
These insurance funds won’t protect you from ordinary losses that anyone experiences when putting their money at risk via investments, but it covers “unforeseen circumstances.”
Having an insurance fund provides peace of mind if you are new to investing. You’ll receive that extra reassurance that you won’t put your money into a platform that later collapses.
Choosing Bitcoin Trading Platforms You Can Trust
The cryptomarket is fluid and volatile. Though there is the potential for high rewards, you should always do your research when choosing bitcoin trading platforms to ensure you don’t put your money at risk.
Our business section has more financial advice to help you get up to speed with crypto – why not check it out now?
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