Cryptocurrency is a growing segment of the investment marketplace. More and more investors are utilizing these digital currency options in their trading, and for a very good set of reasons. Cryptocurrency can be spent like regular, fiat currencies at retailers and with online merchants. This makes Bitcoin (BTC), Ethereum (ETH), and others a viable purchasing option for those with robust trading portfolios.
Likewise, with the increased interest in the digital currency space, more and more tokens, forks, and coins have emerged, driving up the price point of the best-performing assets in the marketplace by a huge growth factor. Ethereum, Ripple, Litecoin, and Bitcoin (along with many other crypto opportunities) have developed into fantastic growth assets or day-trading commodities for an investor to leverage for a massive profit opportunity.
But utilizing cryptocurrency requires you to interact with the market through one of many cryptocurrency exchanges. Selecting one to use among the top crypto exchanges can be a daunting task for those who are new to the space. The best crypto exchanges act just like brokerage accounts for the stock market, so anyone coming from the world of index funds and company stock ownership will quickly feel at home in the crypto-trading space. However, there are some unique features here that don’t exist in other marketplaces. With this guide, understanding the different crypto exchange options and how to select the best one for your needs can become a far easier task.
Fees are a crucial component in selecting any new cryptocurrency exchange.
Perhaps the most important thing for an investor to understand about their trading environment is the fee structure that will eat into any profits that can be made in the marketplace. Crypto trades are labor-intensive and require mechanical computational power in order to validate. This means that cryptocurrency exchanges are all going to charge something in the way of a trading fee for each move you make in the market. Whether you opt to use Binance, Coinbase, Kraken, Gemini, or one of many hundreds of other trading partners to conduct your investment business, there will always be some level of fees charged on your account.
Calculating profit with the addition of any fees incurred is something that many people forget to do, but it can mean the difference between actually taking a profit throughout the trading day or simply breaking even and treading water as a result. While you may decide that a higher fee rate is acceptable in order to gain access to specific research products and technical indicators that a certain platform might offer (often in exchange for these higher fees), it remains crucial to take these reductions on board in order to fully understand how your strategy stacks up.
Research additions are a key resource for crypto traders.
Just like the fees you will pay with any crypto exchange, learning about the additional services and resources that your platform of choice offers is a must. Crypto exchanges are competitive by nature, and many will offer unique plugins and indicators that can amplify your investment game. Comparing the added features of all your top choices is a must for any trader looking to strike it big in the cryptocurrency marketplace.
Coinbase, Binance, Kraken, and Gemini are some of the biggest names in the crypto space, and each offers its own approach to the research component of the trading day. It’s a good idea to evaluate the added features of each platform before settling on one to be your go-to trading space for the long term.
With these facets of crypto trading in mind, you will be better positioned to make the best decision about your trading environment.