Consumer and institutional investors are getting into the cryptocurrency trade and ownership at an alarming pace, with more than 100 million cryptocurrency users being recorded earlier this year.
With all the buzz surrounding Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies, many first-time traders are looking to get in on the action and start reaping the rewards that cryptocurrency can offer. Yet investing in the crypto space is different than the stock market or any other trading space that a beginner might be used to already.
Getting to know the major players in the cryptocurrency arena and then selecting the best crypto exchange for the needs of a beginner is crucial to finding success in this space.
With this guide, understanding the ins and outs of crypto exchanges so that you can make an informed decision when it comes to your money and investment strategy is easy. Read on to discover the key features of a great cryptocurrency option for beginner traders—as well as others who might be looking for a change from their current cryptocurrency home.
Research products are crucial for success in the crypto world
Cryptocurrency is a novel investment product. Bitcoin, the first cryptocurrency to hit the market, is actually still younger than the age requirement for most brokerage accounts around the world! This means that great research is more important in this trading arena than anywhere else for a beginner. Kraken, Gemini, Coinbase, eToro, and others offer nuanced research products all within the native layout of their trading platforms, but the information and technical indicators that are included can vary slightly from exchange to exchange.
Taking a few different crypto exchanges for a test drive is often the best way to evaluate which one “feels” the best for your needs.
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Likewise, utilizing third-party research is a crucial part of developing a winning trading strategy for the cryptocurrency marketplace. Bringing in as much knowledge as you can is the best way to gain a leg up in any market, but it’s particularly useful in this still-young trading arena. Cryptocurrency offers immense upside, but leveraged tactlessly, investors stand to lose much as well.
Consider security histories for information on the protections for your account
Cryptocurrency is a lucrative digital asset, and so many hackers and other malignant actors often try to break into accounts and investment platforms in order to steal crypto coins from unsuspecting users. Breaches of security are sadly commonplace in today’s world. Yet, crypto exchanges have taken it upon themselves to deliver the best in encryption software and security measures in order to protect their clients from these data breaches and the potential for theft. No one can be perfect all the time, though, and many cryptocurrency platforms have seen penetrations that affect users.
Evaluating the track record of each of the exchanges that you are considering can give you insight into the importance placed upon securitization within the development and management teams at each brokerage house. Every exchange will prioritize some element of the user experience for their clients, and if security is your main concern, then going with an exchange that shares this as a top-tier value is a good decision that will stick with you for the long term.
Security is good amongst all the major players in the crypto marketplace, yet some exchanges will naturally boast a higher level of securitization than others. Consider this feature and make a decision that corresponds with your unique needs and priorities.