Cryptocurrencies are the backbone of a thriving digital economy. Today, they have multiple applications, from digital payments to trading. They have benefitted millions across the globe, with many of them becoming millionaires within a fortnight if they are smart and lucky with their investments.
Numerous online exchanges ease the potential difficulties new traders of cryptocurrency may face. One of these platforms is Pocket Option. It offers great benefits, it is extremely easy to withdraw money on Pocket Option, and on top of that it is highly intuitive to use. But Pocket Option is just one of many, and this article will help you choose the best platform for you.
Determine Whether the Platform Is Regulated
The first step in selecting an exchange is to check its regulatory status. Various government and independent agencies are responsible for regulating online trading platforms and ensuring that the trader’s funds are protected.
A potential hindrance could be the fact that cryptocurrency trading is not regulated in some countries. If you are a resident of one of these countries and you want to trade, you might want to look for an overseas trader that is regulated by a competent body.
Look Out for Brokerage Fees
The brokerage fee is the amount that the exchange charges for its services. It depends on the type of trade you perform. Brokerage fees can range from 0% to 5% per trade and are determined by the exchange based on the payment method and type of transaction. Most exchanges nowadays charge brokerage fees of less than 1%, so while almost all platforms are great on that front, you should still be on the lookout for the lowest percentages.
Check for a Trial Account Option
Trial accounts are great ways for a new trader to learn the ropes without being exposed to any of the risks that come with actual investments. These demos allow you to learn trading strategies, gain experience and get insight into the trading environment by simulating the market at any given time.
The service level and practice will not always be the same as the actual market, though, and the duration for which you can use these demo accounts is also more often than not determined by the exchange itself. So all these things must be kept in mind when selecting an exchange.
Keep an Eye on Bonus Offers
Many exchanges these days offer various promotions and bonuses to new users when they sign up, to incentivize people to select their exchange over others. You should make a habit of comparing the bonus incentives offered by multiple online exchanges before making a selection.
Other exchanges, while not offering any welcome bonuses, will compensate by allowing lower initial deposits by new users. This is always a good option since fresh traders should not start with bigger investments. They should get acquainted with the market and sharpen their trading skills before taking any big plunges.
Conclusion
There are a variety of factors you need to keep in mind while selecting the exchange you want to trade cryptocurrency on. For example, it may depend on the welcome incentives, the payout percentages, or the duration of free trials. Keeping our tips in mind, you will be able to make a good choice.
