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  • Writer's pictureGlobal MoonXBT

How to Choose the Right Platform

You need to know a few key things before you begin trading and choosing the right platform for you :

1) Are there many active traders on the platform?

2) How liquid is the trading on that platform?

3) Is the platform licensed and regulated?

4) Do you have a good system to follow to learn how to trade CFDs?

5) Do you have a diversified set of assets that you can trade with?


I. Security

The platform you choose directly determines the security of your crypto assets. Therefore, you must choose a platform that is worthy of your trust and reliability. Such a platform must not only meet the latest security standards but also be equipped with a professional security team. Ideally, they can help you recover lost funds so that the platform can best protect your private data and funds.

1. Security Standards

Every trading platform should place the highest priority on security. It is extremely difficult to attack a crypto asset directly, but it is relatively easy to attack a trading platform and steal user funds or data. The best trading platforms in the world meet the latest security standards, conduct regular penetration tests, and have employees who are trained and educated on how to respond to cyberattacks.

2. Security of Funds

There are a large number of malicious actors and hackers in the crypto-asset market waiting for an opportunity to carry out targeted attacks on trading platforms to steal users' funds. Although the success rate of hacking is low, trading platforms are a favorite target for hackers due to the large amount of funds they hold in custody. Choosing a trading platform that has a "money recovery plan" or "insurance plan" will certainly give you more peace of mind.

3. Security Team

Security is one of the most important aspects of trading crypto assets, and the security team is the most important part of every crypto asset platform. Therefore, a trustworthy trading platform will strive to protect the private information of the team in all aspects, as the personal information of these cybersecurity experts must be protected and difficult to access by outsiders. However, it is of course ideal to choose a platform with the lowest probability of negative events and the most active security team, such as those that can consistently publish security-related reports, research articles, or actively collaborate with other platforms in the security field to enhance the security actions of the industry as a whole.

4. Transparency

Security threats to trading platforms can come not only from outside but also from within. The ideal trading platform is open and transparent to users on all fronts, with clear and easily understood terms and conditions, rate structures, transparent operations, and a roadmap for development. Users and stakeholders are able to see how the trading platform works and understand how funds are deposited and protected. Transparency is extremely important for all trading platforms, but even more important for those that issue stablecoins.

5. User Data Protection

Registration is the first step to becoming a user of a crypto asset trading platform. You need to provide basic information including your email address, name, country, date of birth, etc. In addition to that, there is KYC verification and payment information required for topping up. This information is very important and risks arise from it. So, make sure that the trading platform you choose complies with data protection-related laws when handling data and does not share or resell your information to third parties.

II. Products and Services

The ideal trading platform should be able to offer a variety of trading pairs and payment methods, in addition to a range of financial products to further satisfy the user's crypto-asset experience and bring new revenue opportunities to the user.

1. Top-up and Withdrawal Methods

Before you can start trading and using different products, you need to have some crypto assets in your wallet. The easiest and fastest way to do this is to buy directly from a trading product platform. Some trading platforms only have one or two payment methods, but it is best to choose those that support multiple payment methods, such as savings/credit card payments, bank transfers, C2C, third-party payment channels, etc. Each payment method has its advantages and disadvantages, so please choose the payment method according to your own situation and region.

2. Crypto Assets and Trading Pairs

Many trading platforms allow users to purchase different crypto assets. There is no doubt that Bitcoin is the crypto asset of choice for crypto asset newbies. Later on, you may also consider buying other popular crypto-assets such as Ether ETH, platform coins BNB, XRP, or USD stablecoins USDT and BUSD, in which case you will need a trading platform that offers a wide range of crypto assets and trading pairs. On a platform that opens more trading pairs, the choice of trading opportunities will be wider.

3. Products

What are your expectations when you buy Bitcoin or other crypto assets? Are you just buying and holding, or are you looking to earn more? Major trading platforms around the world are often connected to a rich ecosystem of services and products around trading, such as crypto asset savings cards, asset custody and protection, trading services, and other financial services that enhance the crypto asset experience and increase one’s opportunity for returns. After purchasing crypto assets for the first time, you may choose to hold for rebates, or you may enhance your returns through trading. Whatever your intention, make sure the trading platform you choose gives you the solution you need.

III. Trading Fees and Earnings

I believe that users who sign up for trading platforms share a common goal, which is to invest and earn revenue. The best choice is to find a platform that has a reasonable, fair, and transparent fee structure and is open to a variety of high-yielding financial products in order to maximize your investment income.

1. Transaction Fees and Rebates

Transaction fees are the main source of profit for crypto asset trading platforms. Trading platforms all charge a transaction fee for each transaction made by a user based on their fee structure. Generally accepted market maker/trading fees range from 0.1% to 0.2%. Generally, platforms do not charge a recharge fee, but withdrawals are subject to a small withdrawal fee with the rate varying from platform to platform. Some platforms will reward users with partial rate rebates for referring friends to register. It is recommended to estimate your trading volume and value based on the rates before signing up for a trading platform. If your trading volume is high, you can consider a VIP program with lower rates, so that you can also enjoy many peripheral and additional benefits and rights brought by the platform.

2. Revenue

As the crypto asset market and its services continue to evolve, investing in crypto assets is no longer as simple as trading and holding. Different services and various products with different risk/reward ratios allow you to earn more from your crypto asset holdings. Therefore, choose a trading platform that offers high-yield products such as wealth management, position rebates, lending, contracts, and leveraged trading. More developed global trading platforms can also offer a new form of financial service called "decentralized finance", also known as "DeFi". In addition, trading contests or sweepstakes launched by the platform's daily operations allow users to earn additional revenues and rewards.

IV. Reputation and Track Record

If you are sure that the trading platform you have chosen is safe and will meet your needs, the next thing to focus on is to look at its brand reputation and system performance. Registering and topping up on a trading platform requires a sufficient level of trust in that platform, after all, our money is hard-earned. Before topping up, make sure you understand clearly the platform's reputation, past negative events, legal and compliance issues, system performance, and many other aspects.

1. Reputation

Reputation is a decisive factor in the success of a crypto asset trading platform. Trading platforms are well aware of this, and those with good reputations do everything they can to protect their users and their reputations. The easiest way to evaluate a trading platform is to look at what the community and social media followers are saying. You can search for news about the platform on search engines and read relevant media reports. Who is the CEO of the platform and who are the team members? A good trading platform must have a team that takes community feedback very seriously.

2. Historical Record

Facts speak louder than words. Probe search engines and social media (Twitter, Facebook, etc.) for information on hacks, lawsuits, compliance issues, etc. that may impact your chosen trading platform. Keep in mind the Bitcoin mindset: "Don't trust, verify" and verify the accuracy of information through multiple channels. Beware of psychological terror tactics (FUD).

3. System Performance

A reliable trading platform must be able to withstand market volatility and increased user activity, as well as provide market liquidity and allow transactions to be matched and closed quickly. However, not all trading platforms can do all of these things. First, understanding the technology of a trading platform's aggregation engine will give you an idea of the number of trades the platform can handle per second. Then learn on social media or blogs about the frequency of maintenance and the history of past service interruptions.

V. User Experience, Satisfaction, and Education

We must choose a trading platform that is reliable, easy to operate, and clear. Will it be able to withstand a large number of transactions during market fluctuations? Does the operating interface provide a seamless experience? No one wants to waste time that could have been spent on making money looking for features and buttons.

1. User Experience

We spend hours on the interface of the trading platform, so make sure the interface and user flow design are in the style you like. You can download the platform app or browse the platform website to get a feel for the interface. Is the interface design intuitive and clear? Is the color scheme comfortable? Is the operation flow smooth and reasonable? These are the points that users will experience firsthand. Of course, some platforms also welcome users to actively provide feedback and interaction, as well as listen to the voice of their community.

2. Customer Support and Satisfaction

The crypto asset market is open all year round, 24/7. Therefore, users may need support at any time of the day. Learn about the platform's customer satisfaction and customer support ratings to be sure you can count on the team when you have a problem. Look for a trading platform that offers 24/7 support, and has high responsiveness and resolution rates. Global trading platforms often offer services in different languages, so make sure the platform supports your language.

3. User Education

If by this point, you still have several trading platforms to choose from that meet all your criteria, then the next thing to look at is which platform provides users with neutral, up-to-date resources for learning about crypto assets. While user education comes last here, it is an extremely important safeguarding factor for the safety and revenue experience of crypto assets. Trading platforms need to be able to provide a wealth of learning materials to keep users informed about security, trading, finance, crypto assets, and all other related knowledge.


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