There are a lot of options when it comes to crypto trading. So much choice can be confusing, especially when trading can seem pretty complex. Wondering what the best trading platform is? Well, look no further!
The Different Types of Platforms
Not all platforms are born equal. The right one for you will not only depend on your needs, but also on factors like experience.
Centralized or Decentralized?
A key consideration is whether you prefer a centralized or decentralized exchange.
Centralized — This type is one of the most popular. It is run by companies who make a profit by charging a commission. Generally, you need to register your identity.
It could be argued that this goes against what cryptocurrency is all about — namely, decentralized currencies and anonymity.
Decentralized — These are in line with how a lot of cryptocurrencies work, notably Bitcoin. There is no private company or other central means of control.
However, these exchanges make it possible for criminals to hide certain activities, and they are entirely unregulated.
Types of Assets
There are two main types of asset exchanges:
- Cryptocurrency-to-Cryptocurrency — It’s exactly what it sounds like: swapping crypto for other crypto currencies.
- Fiat-to-Cryptocurrency — Again, it’s self-explanatory: this exchanges fiat currency for crypto currency.
Custodial or Non-Custodial Asset Management
- Custodial — These are wallets for crypto currencies provided by the exchange or a private company. They are regulated and centralized.
- Non-Custodial — These are the exact opposite; the user holds his or her own private keys.
Crypto Exchange: What to Consider
After you have worked out the type of control, asset exchange, and management method you prefer or need, the below factors are what you should be thinking about:
- Ease of use. Some platforms are prohibitively complex. They are designed for experts and have not invested in developing an intuitive user interface.
- Privacy. Many exchanges are not anonymous. If privacy is one of the reasons you are using cryptocurrency in the first place, then this will be a deciding factor.
- Speed. The time it takes to complete exchanges for different pairings varies widely. Most exchanges are clear about their average exchange times, so keep an eye out for this.
- Fees. Transaction fees can be high, and there can be other costs. It is important to make a decision that is economical, as well as taking in other factors.
- Reputation. If a platform is very new or unknown, then it is best to be cautious. The best measure of reliability is reputation.
- Limits. If you are looking to exchange larger amounts, then limits will come into play. You should check these before you commit.
We have kept this in mind when analyzing our top exchange platforms.
Top Three Exchange Platforms
Finding the right service is daunting, particularly when there are more than a few horror stories circulating about scams. We have analyzed multiple platforms so you don’t have to.
Below are the pros and cons of some of our favorites.
Godex became popular due to its speed and a great variety of coins. It is perfect for beginners, and it does not take an investor much time to start exchanging.
- Servers are protected both physically and with modern protocols
- More than 200 coins to exchange (e.g., 1 DASH to BTC)
- Anonymity guaranteed
- Fast transactions
- No fiat currency
Coinbase is a widely recognized exchange in the US. This platform not only has advantages but also a bunch of disadvantages, which makes an investor wonder if it’s worth it.
- Pretty basic interface
- Reasonably high limits
- High liquidity
- Comparatively expensive
- Not anonymous
- Not many altcoin options
This exchange is known for allowing for a wide range of altcoin options. Also, it is well suited for professionals, but not for novice investors. Therefore, you need to start with simpler systems if you are a beginner.
- Comparatively low fees
- Good reporting
- Range of currencies
- Not for beginners
- Not supported in 13 US states
Cryptocurrency trading takes a little while to get used to. As currencies have become more widely used and understood, more and more exchange platforms have emerged. All have their weak points and strong points.
Compared to the pros and cons of different platforms, Godex provides the most benefits and is very easy to begin with. But whatever platform you choose, remember to do your research and make sure you are opting for the right one for your needs.
The post The Best Crypto Trading Platforms to Consider in 2021 first appeared on Mind My Business.