You’ve decided to invest in cryptocurrency, looking to make decent profits. The statistics inspire you, as they predict crypto’s tremendous growth in the future. One of the predictions puts the valuation of the cryptocurrency market at almost 5 billion USD by 2030.
But before you can buy, sell or invest in crypto, you need a platform that makes transactions possible.
Crypto exchanges let you deal in cryptocurrency. Once you Go to website, you can trade one coin for another, use crypto to purchase digital assets or convert them into fiat money, and carry out various transactions.
Different types of exchanges exist in the market, making it a little complicated to choose one, particularly if you’re new to this kind of investment. What are the features it should have and do they make trading straightforward and hassle-free?
How many cryptocurrencies does it support?
You would be trading with several cryptocurrencies as an investor. It would be highly inconvenient to find a new exchange because your existing one doesn’t support particular crypto.
Select an exchange that provides you with plenty of options to buy, sell, and trade cryptocurrencies to avoid such inconvenience. You will find some that support more than 320 currencies, and those are the ones you go for.
Can you trade in the fiat currency of your country?
Although most crypto exchanges let you deposit and withdraw fiat currencies, the problem arises when they don’t include your country’s fiat. For example, if you are trading in Australia, you should have the option of dealing in AUD.
You might also consider checking the withdrawal processing time and what payment services they accept. Some platforms don’t charge any fees for the fiat of the country they operate in, so that’s something you must check beforehand.
Does it provide efficient portfolio tracking?
An efficient crypto exchange allows you to instantly check the profit and loss of your asset holdings on the same screen, maybe with a side panel. Switching between tabs or screens every time you must check something is inconvenient.
What about automation of investment?
Automation of investment is crucial for a quick and efficient trading process. For instance, some platforms have a system for recurring deposits where you can deposit a fixed amount every month.
Some platforms automatically divide the deposits across various cryptos.
Is there an advanced security system?
While trading in cryptocurrency, safety and security should be your priority. Hackers can detect the slightest security breach and steal your crypto if you operate with weak security.
The two best ways of securing your account are two-factor authentication (2FA) and biometric login. Two-factor authentication is effective because it involves two login steps, while biometrics contain biological data that are impossible to change.
Can it generate a tax report?
Some crypto is not taxable, while others are. For example, if you’re trading in Australia, you must have records of all cryptocurrency transactions. Even if you don’t hold any Crypto Tax Calculator Australia assets, you should have the documents for at least five years.
The exchange should allow you to generate and download complete tax reports in an uncomplicated way while giving you access to them whenever you have to.
Will you receive price alerts?
You must be quick while dealing with crypto since its prices constantly fluctuate, regardless of the crypto you use. It becomes necessary to receive price alerts when your crypto hits a certain point, helping you make a decision quickly.
What is the minimum buying amount?
It’s okay to be cautious when you’re new to crypto trading. Select those exchanges which don’t demand a high minimum buying amount. You will find some that let you enter the crypto market with even 1 AUD, and you should go with those.
These are some things you could look for in a cryptocurrency exchange before trading. You must always check the features because those play a significant role in your crypto trading experience.