Did you know that same as the stock exchange, even cryptocurrencies trade through exchanges, even if they are not as regulated as the former! An exchange provides a set up, which aids in the seamless trade of cryptocurrencies and functions as a platform where traders in cryptocurrencies can meet.
For a cryptocurrency trader, choosing an optimum trading platform for exchanging his currency is vital. This helps to ensure that his profits are maximised and he faces no troubles in conducting regular transactions through that exchange. Immediate edge app helps traders choose the most profitable trading platform to carry out various trades.
What you need to know about cryptocurrency exchanges?
Ever since the first ever cryptocurrency exchange was launched a few years ago, the world of cryptocurrencies has undergone major changes. With the growing demand of cryptocurrencies all over the world, many tools and features have been developed, trying to make cryptocurrency exchanges a safe and reliable place to conduct transactions. The simple and safe environment that various cryptocurrency exchanges have created, have made it a very profitable experience for traders involved in this market.
The notable fact at this point is that not every exchange is as well developed and well innovated as some of the best cryptocurrency exchanges around the world. This results in a lot of traders being connected to these less developed exchanges, often missing out on some of the most promising features that the developed exchanges have to offer.
Most traders fail to realise that the choice of their trading platform could spell the difference between success and failure. Based on this fact, here are 5 vital signs that you must watch out for, which could indicate very well that it is time to make a switch from your current trading platform.
Signs that indicate it is time to switch from your current exchange
- Kyc completion: At the time of creating an account with an exchange, several pieces of personal information are left out, such as, address, date of birth and supporting documents. Each of this detail can potentially reveal your identity. In the last few years, a lot many exchanges have started seeking the KYC related information from customers. This puts them at a potential risk and reduces their privacy. Providing such crucial information is not strictly required in the case of a cryptocurrency exchange. Fortunately enough for many customers, there are many exchanges today which do not force their customers to provide this crucial information.
- No option to trade on the short side: While trading in cryptocurrencies, a trader can take either a long or short position. While taking a long position means that you expect the price of the currency to rise during that period, taking a short position indicates that you expect the price of the currency to fall. From a trader’s point of view, it is important to trade on an exchange that permits taking both, long and short positions. If your exchange does not permit taking a short position, it is time to make a switch.
- Misleading trading fee: It is a common practice for exchanges to attract new customers by promising low fees for their services. Traders often tend to fall for such gigs, hoping to make larger profits. What one may miss here is the large spread that an exchange may have, making it costlier to trade on such exchanges.
- Absence of leverage trading options: With the help of leverage trading, it is possible for traders to obtain good returns from minute price movements in cryptocurrencies. This helps in cutting down the number of trades that need to be carried out. Only a handful of cryptocurrency exchanges allow their traders to trade on margin. If you are not on one such exchange, you are missing out on many possibilities that it can bring to you.
- No assistance in trading decisions: Most traders make use of tools to help them identify the best and most profitable trading opportunities. A good trading platform should have at least one indicator that points towards profitable market sentiment to help traders. If your platform lacks one such tool, it is time to move to another platform.