Want to get into cryptocurrency? The first step is to choose an exchange system to buy and trade Bitcoin, Ether, Cardano, BNB or other crypto assets. These trading systems, also called platforms, function as intermediaries on the Internet. But beware, the offer is wide. And if security is a major issue, the user will also need to consider pricing, features and product offerings.
Safety to limit risks
A beginner crypto-investor will pay special attention to the security aspect. Many platforms are not regulated in Europe. This is the case of Binance, Coinbase or Kraken. Conversely, eToro is regulated in Cyprus.
Many platforms are registered with the Autorité des Marchés Financiers (AMF) as “digital asset service providers” (PSAN). In this case, they have obtained the approval of the French regulator, which allows the client to benefit from compensation from Deposit Guarantee Fund and Settlement in case of failure.
But on the security side, the essential point to check is about the reliability of the platform itself. Indeed, it is the platforms that hold the crypto keys that are at risk of being hacked if not adequately protected. Fortunately, their designers have developed high-performance devices with double (2FA) or even triple (3FA) authentication, including facial recognition. In 2022, one must be careful, as fraudsters are on the lookout, attracted by the enormous amounts circulating. Fraudsters pounce on the slightest breach of security.
A complex fee system
Transaction fees vary by platform. Some can be very low (as low as 0.1%). Discounts may be given to the crypto-investor depending on his expertise and the amounts he invests. Fees are also greatly reduced when the investor owns native tokens on the platform. But the platforms can take up to 1.8% for each deposit made from a bank card. Added to this are withdrawal fees when funds are withdrawn and also exchange fees when multiple currencies are in play. Use a crypto platform comparator making one’s choice is the only way to find the way.
There are platforms for buying and storing cryptos, others to go further by actively trading them. Each profile has its own exchange platform. Moreover, if currently, the number of available crypto-currencies is estimated at several thousand, on certain platforms, the investor will only have a choice of about thirty. This is enough for a beginner, but an active and experienced investor will be frustrated not to have access to more products, especially altcoins. To discover the wealth of the platform’s crypto offer, but also to check the presence of derivative products (for leverage effects) or savings products, a comparator offers you valuable help.
Additional amenities and services
Not all platforms exist as apps, which can be problematic if you want to manage your purchases or trades with your smartphone. Some interfaces are intuitive, others less so. In addition, users are sometimes confused by the number of options offered by the platforms.
Copy trading functions make it possible to replicate the choices of the best traders. It’s a good way to start, but not all platforms offer this feature. The same for social trading features that allow crypto traders to interact with each other.
For those who want to consolidate everything with a single broker, some crypto platforms allow trading of stocks, Non Fungible Tokens (NFT) and even commodities.
Among other services to be studied: the possibility of obtaining a bank card that allows purchases in crypto, cashback systems or reductions from partners that accept crypto-currencies. Last but not least, depending on his level in the language of Shakespeare, we will also check if the lessons and customer services exist in French.
As you will have noticed from reading this article, the number of points to check before embarking on your crypto adventure is significant. And it will not be easy to arbitrate between a wide offer of cryptos, advanced functions, liquidity and security. To choose the most suitable crypto platform for your profile, one last tip: compare !