Bitcoin exchanges are growing in the minds of investors all across the world. From the U.S. to the Congo, investing in cryptocurrencies, including Bitcoin (BTC), is gaining traction as an opportunity for virtually anyone to generate wealth for themselves and their families. Cryptocurrency trading is a modern incarnation of commodities investing, and yet the principles that drive the marketplace remain constant.
One space in which a Bitcoin investor must look first is in the cryptocurrency exchange. While there are thousands of different cryptocurrencies in circulation today, you can’t access them without the assistance of a brokerage account in the form of a crypto exchange. There are many great options out there including Binance, Coinbase, eToro, and Gemini, but selecting the best one can be hard if you don’t know your purpose in the investment space, to begin with. Read on to discover how to find the best crypto trading space for your needs.
Crypto traders begin with research products in order to gain the most out of each movement.
In any marketplace, the time spent researching investment products is often the most important part of the whole equation. This is certainly true for crypto investments, and so the best Bitcoin exchange for your unique needs is often the one that provides you with crucial information that you can leverage to make good buying and selling decisions when it comes time to hit the open market. Most trading platforms these days are built with beginners’ needs in mind, and the cryptocurrency space is no different. Today, trading crypto assets is marked by a large spectrum of additional research products that are designed to educate the crypto user while helping them to lock in an understanding of the asset class’s price action patterns.
Research has always been at the center of great trading strategies, so selecting a crypto exchange that gives you access to research materials and learning opportunities that work for your trading needs is a great way to quickly start expanding upon your successes.
Consider fees for the greatest level of transparency.
All cryptocurrency traders incur fees. There’s no getting around this fact, but not all crypto exchanges charge fees in the same way. Fees are a mandatory component of executing any trade within the cryptocurrency world, and the calculation of these reductions is an important component for traders who are looking to understand their nuanced profit and loss balance. Far too many crypto enthusiasts fail to realize that any calculation of earnings is incomplete without factoring in the reductions that come from paying trading fees.
While Coinbase, Kraken, Gemini, Binance, and others will each provide different fee regulations for their crypto traders, the benefits that each platform provides can be weighed against these prices in a variety of different ways. By balancing the amount that you’ll pay for each trade against the added benefits that any particular cryptocurrency platform might provide while engaging with these digital currencies, you can make an informed decision that best represents your understanding and needs within the marketplace.
For instance, many traders approach any commodity with a long hold strategy. These traders aren’t going to be making many trades, so the price paid per executed buy or sell matters a lot less than the added products and plugins that are offered. On the other hand, an aggressive day trader who will take up dozens if not hundreds of positions on a daily basis will want to consider minimizing fees paid as a result of a higher daily trading volume.
With these features in mind, selecting the best cryptocurrency exchange becomes a matter of personal need and preference.