Whether you’re starting as a trader or are already an expert, profitable investing calls for the usage of a brokerage that aligns with your learning needs, investment style and objective. All these parameters do not make choosing the right trading tool an easy feat.
Selecting the right crypto trader requires a careful evaluation of different online traders based on certain critical factors that every good tool needs to have. Below are five things to look out for in a Bitcoin trading platform:
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Availability
Every investor joins a market to satisfy their needs. For example, PrimeXBT users may typically be looking to gain access to crypto markets, stock indices, forex, and commodities. To cater to these diverse needs, a trading tool should be available to anyone regardless of where they are, something that PrimeXBT has done through offering a single secured trading account for cryptos, forex, commodities, and indices, with high liquidity and order execution capabilities backed with data from more than 12 industry-leading exchanges and feed providers.
Good trading platforms will allow you to perform multiple tasks while fitting into your lifestyle, however hectic it may be. Therefore, a trading tool should not just be available to you at all times but it should also be convenient to use. For instance, ensure that you can access it via a mobile app. Examples here include the PrimeXBT, Etoro, or SimpleFX apps which offer mobile access to its asset markets. The apps are available on Google Play Store and Apple Store and traders can seamlessly set up real-time alerts, view charts, execute trading, and create wishlists.
Security
Online trading sometimes exposes sensitive investor information to hackers and internet burglars, thus the need for top-notch security. When shopping for a crypto trading tool, security should be among your top priorities to ensure that the safety of your information is guaranteed.
Take note of a platform’s type of data encryption service to give you a fair understanding of how your personal information will be transmitted within the platform. As a standard practice, a secure trader should feature application and server firewalls. Separate servers should also be in place to guarantee data recovery and backup.
But security isn’t just about your personal information. Having worked hard for your money, you certainly don’t plan on handing it over to someone simply because they claim to be legit. Make sure that you screen a brokerage against its relevant regulatory body – if it is US-based, check it against the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC), Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) for UK-based or Investment Information Regulatory Organization of Canada (IIROC) for Canadian trading tools.
Before trusting a platform with the security of your investment, make sure they are registered by a relevant body.
Transaction fees
Most trading platforms will publish their transaction fees making it easier for you to gauge which one works best for you. Whether you’re trading Bitcoin or other virtual currencies, expect to incur transaction costs every time you enter a trade or withdraw funds. For example, a tool may require you to pay for a spread or commission when entering a trade, so it is only prudent to find the most affordable rates in the market.
However, be careful not to settle for a low transaction fee brokerage while compromising on reliability and security. Draft a list of irreducible minimums in a trading platform including security, reliability, and fees and make a comparison of multiple platforms to identify one that comes closest to your checklist. At the very least, ensure you strike a perfect balance between affordability and security.
Trading platform
In the trading world – from cryptocurrencies to fiat currencies to stocks, most of the trades take place online. You want to make sure that your platform of choice is easy to use and stable.
Additionally, look out for things such as margin trading, easy deposit and withdrawal modes, and trading tools such as stop-loss.
Also, check whether it offers news feed plus any other important information needed for proper trading.
Customer support
There is no single perfect trading tool out there and at some point, you may want to contact the support team to sort out a problem. You want to work with a platform such as PrimeXBT that knows its way around technical and administrative issues, with 24/7 support.
The support team should ensure that issues are ironed out within the shortest time possible. Search online for credible reviews to catch a glimpse of what users are saying about the platform. While the feedback will never be 100% perfect, the positives should by far outweigh the negatives.
Final thoughts
Your success as a Bitcoin trader is hugely determined by the trading tool you choose. You need to invest a considerable amount of time towards researching to ensure that you get it right from the start. Understand that what works for someone else may not necessarily resonate with you. However, once you know what you want out of a trading tool, making the right choice will come easy.
What other must-haves do successful Bitcoin traders look out for in a platform? Share with us!
