Cryptocurrency is a kind of digital currency, and it fulfills the same purpose as other country currency. However, this does not have physical existence since this is only in digital form. The first digital cryptocurrency is Bitcoin, and later numerous currencies started running into circulation. All those other currencies are known as Altcoin. The value of Bitcoin is increasing like a surprise for anyone as it was almost Zero dollars (US$0.0008), but today, it is valued at USD 60141, and it keeps on changing day by day. There are so many factors that determine the price fluctuation in Bitcoin and due to high fluctuation in Bitcoin, it attracts traders worldwide despite decentralization. So, traders have to choose any platform to execute the trades.
Bitcoin Trading Platform
Bitcoin trading platform is nothing but the software where you can log in and place your orders; however, some compliances need to be fulfilled by users. As you know that this is online trading, so you must choose such a trading workstation (TWS) that is well equipped with massive security and cannot be hacked. Moreover, the software should have the facility to trade with other Altcoin like Ethereum, Unicoin. Bitcoin Trading platform is connected with live buyers and sellers on a real-time basis where any traders can see prices, position, and time. There are facilities for squaring off the position, withdrawal of Bitcoin amount, and can trade with other cryptocurrencies or fiat currency. Such offers depend on the Cryptocurrency Exchange to Cryptocurrency Exchange. There might be a tab of Take Profit (TP) orders and Stop Loss (SL) orders, but we need to keep some more things while choosing such a platform, which is given below.
Things to Keep in Mind
1. Legal Aspects
This is one of the aspects which traders used to confirm before choosing a Bitcoin trading platform if the service provider is legally established with a physical office or not. As it gives an overall ultimate security to the customers, you may ask the detail about company registration and affiliation. Fraud can be done online very easily, and it has been reposted many times in the last decade. Therefore, you should enquire about the authenticity of a company that is providing such a trading platform. You can check licenses, any court cases, or financial scams against them.
2. Security Aspects
You can check if they are having a cold and hot wallet as coins need to be bought using a hot wallet but in case of no trading, you need to keep your assets in a cold wallet. Wallet must be completely secured to safeguard the asset of users and additionally, you can ask if they have two way of verification system for any kind of fund transfer, withdrawal, or deposit. Two ways of verification make the system more protected. A tiny mistake may lead your fund to risk.
This is a major common aspect that you need to find out because sometimes, you may feel cheated due to unknown or hidden costs while trading. You can look for the background of their board members, cost details of services, payout and pay in policy, defaulter policy, and disclaimers. You can dig the information through their web pages or you may call them to know genuine information. There should be all information and incur of transaction fees and should be well known to users.
4. Liquidity Availability
High Liquidity is the principal reason why customers come to trade into Bitcoin, and you must get this. Therefore, you can check if they are offering liquidity all the time or not. There should be a facility for buying/selling Bitcoin anytime without delay. However, a certain time is required for transactions and market holidays. It is usually time to convert fiat to BTC or BTC to fiat so it is not a worrying part. There are few minutes to be taken for processing the transaction which varies from Exchange to Exchange.
5. Additional Cost
Apart from transaction cost, they may be some hidden cost which you need to know, like holding cost of Bitcoin in their wallet or system, conversion cost from fiat to cryptocurrency and cryptocurrency to fiat. Sometimes, a few exchanges may charge you fees for Know Your Customer (KYC), Know Your Transaction (KYT), Software Cost, Annual Maintenance, Mobile Apps cost, and profile updating. You can ask these answers in an email to be a sound record for you in case of any discrepancy.
You have to consider the above-mentioned factors on what you should keep in mind while choosing a Bitcoin trading platform. Most of these points are verified before we proceed. However, it would help if you did your analysis before choosing the appropriate platform for you because it might be something additional from user to the user which may not be included above or might come later such concern.