Selecting a cryptocurrency exchange to trade in this fascinating new asset is an important decision. Unlike stocks and other commodities, owning and trading cryptocurrency can be done in a number of different ways and with varied approaches to the market itself. By far the most popular path to crypto success, however, is a crypto exchange. These operate like stock brokerage accounts and allow for the buying and selling of assets across a huge array of trading pairs.
Crypto is a great option for fast movement investing.
Investors gain the greatest reward when they pair long holdings with fast movers. Investing in index funds, ETFs, gold, and bonds, for instance, provide stability over the long term that simply can’t be beat. These assets will appreciate at a fairly consistent rate for many years to come (in the case of an index fund, that’s likely around 10 percent of growth, annualized over the long term) but in order to really take advantage of the market’s encompassing potential, it’s essential to introduce other assets that take on greater risk for fast gain opportunities.
A blend of slow- and fast-moving investments is the best way to create the returns that you are looking for as an investor. For many, cryptocurrency provides the obverse to these slow-moving and stable growth assets. The cryptocurrency market is open 24/7, and traders are able to take advantage of a highly mobile trading space that can see swings of multiple percentage points every hour of the day.
There’s really no bad time to trade crypto for those with a well-developed strategy for finding success in the marketplace. Everyone from divorce attorneys in Birmingham, AL, to institutional investors in New York City are getting in on the action that the crypto market provides. Attorneys are a great target audience for new crypto coins, in fact. Lawyers work long hours, and their days are spent consistently in high gear preparing legal arguments for their clients. In their downtime—often long after the sun goes down and the stock market closes for the day—crypto trading can provide a blueprint for fiscal and investment success.
Selecting a crypto exchange is highly personal.
This all leads to the essential question of which cryptocurrency exchange is best for your unique needs. The answer is often hard to provide. Each investor is different in their approach to the market and their financial needs. Seeking out a guide that provides a head-to-head, for instance in the Kraken vs Binance debate, is a great way to start your exploration of new and exciting investment tools in this arena. Kraken, Binance, Coinbase, and many other crypto exchanges provide tailored experiences that are perfect for all types of investors, but reading reviews and testing them out for yourself can give you a baseline understanding of each in order to make your selection for the long haul.
Many investors prioritize low fees in their trading platform. This is a common one for those in the stock market and crypto space alike. Trading fees and other built-in expenses take away from your bottom line, so justifying the expense or mitigating it is something that you’ll need to do in your strategy. In exchange for lower fees, many platforms strip down their services and built-in features. For newer investors, the added benefit of a full-service learning environment and custom-included technical indicators might be worth the added cost.
Similarly, many investors want greater securitization of their assets. Security is a main feature in crypto exchanges, but some do it better than others. Exploring the security features can give you a sense of the premium that any exchange places on the safety of their traders’ assets.
With these factors in mind, getting into the crypto space and selecting the perfect exchange for your needs is easier than ever.