Today, everyone from Millenials to financial institutions is trying to learn as much as they can about the capabilities of cryptocurrencies and their underlying blockchain technology. Most importantly, many people want to know how they can safely cash in on the craze, which means carefully choosing a cryptocurrency marketplace.
As the adoption and use of cryptocurrency increases, you probably wonder which platform you should use to securely buy and sell crypto-related assets. Check out this list of the evaluations to make when choosing a cryptocurrency marketplace.
First and foremost, you must perform your due research to ensure you are choosing a legitimate cryptocurrency marketplace. The hackings of some crypto exchanges serve as cautions to prospective cryptocurrency investors to examine their marketplace’s security protocol before trading. A marketplace is responsible for preventing fraud, but choosing a secure one is upon you. No matter the marketplace you choose, keeping a substantial part of your digital assets offline is advisable to minimize the risks.
The type of trading platform
There are three main types of cryptocurrency marketplaces that you should know before choosing one. Trading exchanges are the most common, and they are marketplaces where crypto users can buy and sell cryptocurrencies—for instance, binance and coin base. Every user interacts with the platform, and there is a fee for every transaction.
Another one is a p2p exchange that links buyers and sellers to interact directly, and it eliminates network congestions and facilitates a trustless and secure platform for trading cryptocurrencies. Lastly, we have cryptocurrency brokers who set prices allowing buyers to trade via their platforms, which alleviates the problems associated with traditional cryptocurrency exchanges.
User interface and experience
Another critical aspect to examine is the platform’s user interface and experience. An intuitive user interface makes it relatively easy to trade, whether a beginner or a seasoned crypto investor, making the whole process efficient. The value of a crypto marketplace is largely tied to its user interface.
According to research, crypto platforms with the best user interface will experience more growth in transaction value in the coming years. However, a user interface is subjective and different people may enjoy different user interfaces. Just ensure the platform you choose aligns with your needs.
Transaction fees vary across different cryptocurrency marketplaces. So you must take into account the transactional fees when choosing a marketplace. Some crypto marketplaces provide discounted fees, especially when using their own token to complete the transaction. Others offer purchases for free, only charging transaction fees on sales.
Supported tokens and method of purchase
There is a wide variation in cryptocurrency marketplaces regarding the tokens they support. You must choose a marketplace that supports the tokens you wish to transact with.
The method of purchase also varies across different platforms. While some require deposits through bank transfer, others support PayPal, while others prefer credit and master cards. Some use cryptos only. Ensure the marketplace you pick supports a wide range of purchasing methods for convenience.
It is best to weigh all the necessary factors when picking a cryptocurrency marketplace. Keep in mind security, user regulation, user experience, and transaction fees.