How to choose a trading platform?2022-06-28
The increase of investors in this sector has led to the creation of many crypto platforms that offer all kinds of services so that users can make their investments in different types of cryptocurrencies. In addition to cryptocurrencies, you can also invest in Forex, Commodities, or any other asset on trading platforms. Hence it is essential to know that not all trading platforms are reliable.
In this post, we will talk about the factors that must be considered when choosing a trading platform, whether for cryptocurrencies, Forex, commodities, or other assets. So you can choose only the crypto trading platforms that offer the best-in-class services.
What factors influence when choosing a trading platform to invest in?
Before investing and trading in any platform, it is mandatory to make sure it’s safe and legit to trade with. Many cryptocurrency platforms have taken advantage of the existing trend and ended up being fraudulent. Therefore, it is important not to get carried away by offers with low fees, but to give importance to the security of the platform and the authenticity of the company.
It is indispensable to know if the investments you are going to make are safe. Many platforms have policies in place whereby money is safe from external attacks, a crucial aspect to keep in mind as cyber-attacks are on the rise in any digital environment.
On the other hand, in the field of security, identity authentication and SSL technologies that guarantee authentication, encryption and decryption of data must be foreseen when accessing these platforms. An effective feature that most trading platforms are implementing double authentication (2FA) to ensure account security and prevent any unauthorised access to user’s account. Another valuable features to keep in eye on are:
- Cold storage of digital assets with Multisignature technology
- Full risk check after every order placement and execution
- Encrypted SSL (https) to encrypt and secure our website’s traffic.
- Fingerprint and face recognition login
- All passwords are cryptographically hashed (using bcrypt with a cost factor of 12) while all other sensitive data is encrypted.
- Cloudflare to mitigate potential distributed denial-of-service (“DDoS”) attacks.
- Regular tests and check-ups by our technical team.
- On-going and IT security assessments are executed to keep up to date with new potential vulnerabilities.
- Utilize GDPR guidelines to protect investor data
Doubtless, the strategy that different trading platforms use to attract investors is the offer of low fees. Although it is an important aspect to take heed of, care must be taken with fraud, as we discussed in the previous section. You should look for a trading or exchange platform in which the fees are not excessively high nor are they too low.
These fees may depend on the different assets that the company has, or it may also be due to the regulations and transactions that are carried out. At this point we recommend carefully reading the conditions each company offers before conducting any investment activity. It is at this point where some companies take advantage to benefit from users.
3. International access and wide range of trading instruments
It is fundamental to look for a trading platform that provides international access. This with the aim of giving clients more options for investments that can be accessed worldwide from every country. For example, SolidusX crypto trading is available globally to all countries such as Australia, New Zealand, Scandinavia and the UK.
SolidusX is convinced that the more variety, the better the choice for Trading Online. That is the reason why its trading platform includes the most trading instruments possible, including forex, crypto, commodities, stock indices, and more. Alongside the variety of instruments comes the brokers’ ability to respond to market demand by listing new assets for trading such as: Biannce, BITO, Solana, Polkadot, Cardano, Dogecoin, and more.
4. Market volatility protection
It is beneficial to find a trading platform that ensures clients get the full amount transacted from exchanges regardless of market volatility. While clients don’t get possible gains from Bitcoin moving up while funding the account, finding a safe trading platform that does protect clients against possible price drop while moving money into their trading accounts is of the utmost importance.
Leverage It is always better and recomedale to find a broker that can bring you a more reasonable leverage through liquidity providers in a way that offers both safety and clarity while trading this hyper-volatile asset class. Many firms in the crypto market can offer unrealistic and dangerous leverage for the crypto assets.
6. Different methods of deposit and withdrawal
Different purchase methods in order to better adapt to the user’s needs are necessary. Normally wire transfer, Paypal, debit and credit cards are in use. However, for faster and safer transfers, it is highly recommended to find platforms that use crypto wallets and leading crypto exchanges such as: Binance, Gemini, Bitstamp and others.
Thus it is important the time that passes from when the money is sent until it is available as on the platform. Many times it is better if you can find a broker that could offer your fast deposits and withdrawals with crypto within minutes or hours during the office working hours instead of wire withdrawals that are processed within 48 hours business hours, and maybe even more
7. Interface and user experience
When trading online, it is essential that the user experience is positive and intuitive in order to facilitate web browsing. Making this an easy task is important, so that the user does not see the action of making an investment as a tedious action. Trading platforms that include automated features such as pending orders, stop loss and take profit greatly enhance this experience. Additionally, it must include a multi-channel platform accessibility.
8. Client support
Here you have a feature that not many trading platforms offer. With the trend of cryptocurrencies, there are many users that want to take part of this and do not understand the methodology when investing. The little experience most users have usually leads them to make hasty actions to lose money. Some platforms such as SolidusX have chosen to provide technical support so that the user makes investments like a professional, thus helping beginners who have not been in the sector for a long time to make a profit.
To sum up, choosing a trading platform is not a simple task, but you can get it easier if you learn to determine and prioritize the important features that we have developed in the points above. Doesn’t matter if you are a beginner or a professional trader, you only need an advanced trading platform that operates with a wide variety of products, security for every transaction, 24/6 client support that could support all your needs and give you the support and guidance that you need from every part of the world.