The Smart Way to Choose a Cryptocurrency Platform
How to choose a platform to invest in cryptocurrency?
Summary
1.Several supports allow you to invest in cryptocurrency
2.4 criteria to consider before opening a crypto account
3.You are ready to select a platform to invest in crypto
4.Frequently Asked Questions
That’s it, you’re determined. After carefully studying the projects that interest you, you will start investing in crypto assets. How can this investment be made a reality? This is what I will explain to you in this guide. Find my tips to choose where to buy your cryptos in 2023.
Several supports allow you to invest in cryptocurrency
Buying cryptos takes less than a minute. Just a few years ago, this was not so simple for a novice investor.
There is a range of possibilities for Investing in cryptos. Surely you have heard of well-known exchanges like Binance or Coinbase. There are dozens of others — which offer more or less the same service — spread around the world.
100% crypto platforms
A crypto platform (also called an “exchange”) essentially allows:
. exchanges of one crypto for another crypto;
. the exchange of dollars (or other state currency) for cryptos;
. exchanging cryptos for currency;
. leveraged trading;
For the beginner investor, it can be complicated to understand the differences between web marketplaces. Some offer advanced features, making them less intuitive to use.
Good to know
Leverage refers to the use of debt to increase investment capacity, in order to maximize potential benefits. Conversely, it can also increase losses.
These are 5 most frequently used exchanges. I specialize myself more in the collection of crypto data lists and rates exchanges based on 5 main factors: web traffic, liquidity, transaction volume, trust in the transparency of the data transmitted and fees.
Many platforms based outside the US accepts USD, and process all transactions in dollars, or local currency. We recommend choosing an exchange that allows you to sell and buy cryptocurrencies in USD.
In general, buying crypto goes like this:
. classic registration (identity, email, phone, etc.);
. verification of identity document and certification of the account;
. Login with your US bank account;
. purchase of crypto by credit card or bank transfer;
. Keeping cryptos on the platform, or transferring cryptos to an external wallet.
With advanced trading features and attractive rates, these exchanges are generally recommended to investors already educated about cryptocurrency exchanges.
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4 criteria to consider before opening a crypto account
1. Security
Learn as much as possible about security guarantees on the platform of your choice. The security of your funds (dollars or crypto) is the priority. History is important: the exchange must be completely transparent about its security measures, accreditations, and any vulnerabilities that have existed in the past.
In general, the more demanding the registration process, the more credible the platform. Before making a deposit, be sure that you are on the official website of the platform. Always enable two-factor authentication (2FA) to log in.
Many examples of platforms offering the purchase and sale of crypto have gone bankrupt, taking with them sometimes astronomical sums stolen from investors.
2. Transaction fees and listed cryptos
Have you found a safe platform to buy cryptocurrencies? It’s time to compare fees. Each exchange has its own rates. Most will calculate the commissions to be charged based on the volume traded and your level of activity. Some platforms offer sliding scale fees: the more you invest, the less fees you pay proportionally.
You must therefore anticipate this factor by considering your objectives and your investment plan. Are you going to be an active investor who buys and sells cryptos several times a week? If this is the case, the cost of running each transaction will be decisive. The ability to access a premium account can also be an interesting option.
The diversity of crypto tokens offered on the exchange is another factor to consider. You will have no trouble buy Bitcoinor Ether, as well as The promising cryptos of the moment since all platforms offer them. But if you’re looking for more confidential and “risky” assets, you may need to do more research.
Good to know
it is possible to invest in cryptocurrency without buying any, especially thanks to crypto ETFs. Other means exist such as investing in crypto mining. However, it is rather reserved for people with a good knowledge of how crypto-asset networks work.
3. Who are the founders?
Trusting the creators of a business is paramount before sending your money to their platform.
Start a search on the internet by typing the name of the exchange in a search engine to obtain information. If you don’t find anything clear, or the information is opaque, beware.
The websites of these exchange platforms must leave access to the company’s legal notices. Most often, links to the information pages of these companies are located in the footer of the site. Check the legal existence of the company mentioned if you doubt the information provided.
It is also possible to consult a page presenting the founders and the management team of the company that manages the exchange. This can be reassuring.
4. User experience
Some exchanges are more suitable than others for beginners.
Take a tour of the different pages of the site and observe how the different services offered are organized (trading, staking, selling, etc.). You will quickly notice if the exchange is intuitive enough for you, or if it is rather suitable for experienced investors. The documentation also provides a good understanding of the platform’s features, and contains information about cryptocurrencies to help you Choose an asset in which to invest.
To get started with crypto investing, you don’t need fancy tools. We recommend that you start with simple actions, always with wealth that you are willing to risk.
You are ready to select a platform to invest in crypto
You are now informed about the criteria to consider before opening an account on a crypto platform. In summary, a good platform meets the following criteria:
- Its users have not suffered losses as a result of hacking
- It presents the information of the management company and the management team in a transparent manner
- His name is not on a blacklist
- Sufficient liquidity and number of active users to execute your trades quickly
- The user interface is secure, ergonomic and understandable
Frequently Asked Questions
How to secure your cryptocurrencies?
It is recommended to remove from the platforms cryptos that you intend to hold for the long term. You can use an external electronic wallet that has the shape of a USB stick (like Ledger for example). This device allows you to withdraw your cryptocurrencies by making them inaccessible via the internet. They will be stored virtually on this wallet that will generate a secret code when you place an order to sell your cryptos.
Disclosure: Some external links in the post are affiliate links.
