Are you looking for a platform where you can trade bitcoin safely and make a lot of money? If yes, you will find a lot of options on the internet. New brokers are emerging every day on the internet to provide bitcoin trading on their trading platforms. However, just because they claim to be the best does not mean they are. You have to use due diligence and proper research to your advantage to recognize the best platform for trading cryptocurrencies or just bitcoin. Keep in mind at this point that you cannot name just one platform for trading this digital currency.
Different people have different preferences when they choose to trade bitcoin, and that’s why they choose different platforms. What you can do, however, is to outline the many features a bitcoin trading platform must have to be called the best. That’s what you are going to read about as you continue reading. You will know about all the aspects, elements, and ingredients that will help you identify the best trading platform for Bitcoin trading. So, what is the best platform for Bitcoin trading? Here is how you identify one
Identifying the Best Platform for Trading Bitcoin
· Consider Broker Regulation
Now, when you think of trading bitcoin, the best places to do that are online brokers. You can buy bitcoin on online exchanges as well, but that’s not what you would call trading. You are not trading on exchanges. They are just places where you convert the currency you have into the currency you want to trade for financial gains. That’s about it. They do not offer you any trading facilities, leverages, margin requirements, etc. to help you make money from trading. Yes, they do provide you a platform here you can keep your digital currency safe. With online brokers, you do not even have to own the digital coin to trade it.
Now, when it comes to choosing an online broker, you have to consider regulation as the first point of identifying the best one. Regulation is when a broker is being frequently audited and monitored for its financial operations. What it means is that you have a very small chance of losing your money with a regulated broker because the financial regulating authority is taking care of your interests. On the other hand, an unregulated broker does not offer you any guaranty of keeping your money safe.
· Think about Security
Your security should be a more serious concern for your broker than it is for you. Of course, you already take care of your information and money as you can. However, when you start trading with an online broker, you have to put your money in the trading account that you open with the broker. So, is the broker going to keep your money safe? Well, that’s only possible if your chosen broker promises to keep your money in segregated bank accounts. That’s a requirement that any online broker has to fulfill. If you do not see this happening, you should not put your money in the trading account with this broker at all.
Secondly, you have to pay attention to the security of your information. Is your information that you have provided to the broker on the website safe? If you do not consider this, you could end up losing your identity in the hands of an online hacker. You might not understand the magnitude of harm that a hacker can do to you once he/she gets a hold of your personal and banking information. Again, your broker has to guarantee the safety of your information.
· See Deposit Options
One of the things you will notice online is that many exchanges are taking advantage of new traders in many ways. For example, they have identified the increasing popularity of bitcoin trading. They know that a lot of traders from around the world are looking to trade bitcoin and need to convert either fiat currencies to bitcoin or bitcoin to fiat currencies. In either case, they have to use an exchange to convert the currency. That’s where the exchange charges them unfair spreads i.e. takes a huge cut in the name of conversion fees. If you have a digital coin that is not so popular, you will first have to convert it to fiat currency, and then into bitcoin for trading.
Now, if you have bitcoins, you would want to trade them on the trader’s platform as is. You would not want to convert them first because converting them will make you lose a lot of money in conversion rates and exchange fees. Unfortunately, many online brokers still miss this particular feature. They make you deposit money in your account in the form of some famous fiat currency. Why can’t you transfer bitcoin directly to your account without the involvement of an exchange? The good news is that there are some brokers that have introduced this particular option. If you have bitcoins, you can transfer them directly from your wallet to the trading account you have with the online broker.
· Look for Proper Training Material
Online brokers fully realize the potential of the cryptocurrency trading and its attraction for traders from around the world. For that reason, they are also providing traders with proper tutorials and courses on bitcoin trading. However, some brokers have proven to be deceptive in this area. They promise you that you will learn a lot about cryptocurrency trading as soon as you deposit funds in your account. What happens next is that you deposit funds in your account and land on a training material page that has nothing but generic information about trading. In other cases, you get access to a detailed training page but all of the training is related to other forms of trading.
In other words, these brokers are already offering other types of trading and their training material is geared towards that type of training. They do not update their training material and promise traders that they will learn cryptocurrency trading. You want to make sure that the broker you pick provides you with proper training material. In simple words, you should have access to videos, webinars, ebooks, etc. that are specifically designed for bitcoin trading.
· Pick a Practical Trading Platform
If your broker does not offer you a practical trading platform, you must find other options of trading. What does it mean by a practical trading platform? Well, a practical trading platform meets the needs of modern traders. Rather than forcing the traders to adapt to the platform, the platform adapts according to the needs of the traders. For example, it should be available on all the devices that you use for trading. Whether you are on your computer or traveling with your smartphone or tablet, your trading platform should be available for you on all of these devices.
In addition to that, the broker should also attempt to make the trading experience uniform across all devices. You don’t want to have your trading platform on all the differences devices in all the different shapes and forms. Uniformity in trading is extremely important to keep you focused on making your trades profitable. If you have to learn the trading platform every time you switch your device, you are not on the best trading platform in the first place. Last but not least, all the tools that you need to help you with profitable trades should also be there on your trading platform. You should also receive trading signals to help you enter your trades with confidence.
· Choose an Account That Fits Your Needs
If the broker you are looking at is greedy, you can see many signs that tell you about this issue. For example, the broker will keep asking you to sign up with one of the accounts without ever talking about the benefits of signing up with that account for you. Why would you sign up with an account that does not benefit you in any way? Are you getting a welcome bonus when you sign up? Will you be offered any leverages on your trades? Are the margin requirements acceptable? Is the broker charging you a lot of money in the name of trading fees and spreads?
These are all the important things that you have to consider before you pick an account. You will be surprised to know that the offerings stated in the previous passage do change from account to account. The most important thing is the first deposit requirement. The best broker will keep the initial deposit requirement as low as $250 so any trader can open an account easily and trade with confidence.
So, you should know that there is no specific platform that can be stated as the best one for you to trade bitcoin. You have hundreds of online brokers to choose from. You just have to make sure that the broker you choose has the features and qualities that have been mentioned above. In short, your broker should be more focused on letting you make money rather than focusing solely on making money from you to run their business.