Best platform for cryptocurrency trading is? What a stupid question! Obviously, you know, it’s Cryptocurrency Exchanges. The acceptance rate of cryptocurrencies experiences an upsurge in conjunction with numeral value of exchange platforms.
Here, the point of focus is the features offered by exchanges. This platform acts as a mediator between the buyer and seller to pull off the trade. It is considered as a service offering and a commission is charged against it.
Note: We are reviewing Centralized Exchanges here.
If you have been trading on one or more of the cryptocurrency exchanges, you might find them short of sporadic features. There is no doubt that the present exchanges perform well enough but the thing missing is a complete package under one roof.
Potential and professional traders will require every bit of trading aspects to be hosted on one particular exchange. The current situation makes them compromise on obligatory features or trade on assorted platforms.
Do you what are these requisite features? In order to have the exact data, an opinion gathering survey was conducted by Encrybit which is an upcoming Cryptocurrency Exchange platform. Overwhelming response from the traders’ community has thrown light on bunch of indispensable features.
Let’s take a look at the insights of the Cryptocurrency Trading survey
Volume is the one the most significant pedestal in a cryptocurrency exchange. Volume of a token is its amount traded in the last 24 hours. It indicates the number of people buying and selling the coin. When the volume and price of a coin is high, it means more number of people are trading the coin. The traders examine every minute detail of the volume to plan his/her next move. Low volume indicates that there isn’t much movement in the trade.
Hence a good volume to be maintained on an exchange is involuntary.
An airdrop is provided in case of forks, ICO purchase and free giveaways. The major interest of traders here is fork. Consider an example of BCH. When this hard fork of bitcoin occurred and you were holding 4.8 BTC then you would receive 4.8 BCH as well. The conflict here is that several exchanges aren’t clear about their airdrop/fork policy. This makes the traders lose on these valuable possessions.
Superior Arbitrage Opportunity
When a trader can buy a coin at a cheaper price from one exchange and sell at a higher price on another exchange, it indicates good arbitrage. As you are aware, the price of a cryptocoin differs on every exchange and the traders abide by to witness a larger gap in price. The higher transaction fees, delayed withdrawals clog the arbitrage opportunity.
Leverage. A risky ride where you borrow money to trade on the basis of what you have. When an exchange lends you money, you have to pay it back along with interest. If you are not good at it, you may lose more than your money. Exchanges are worried about their money too and are strict with the rules or margin trading feature is absent altogether. Traders demand a bit flexible margin trading facility.
Graphical User Interface, another essential aspect of any online platform. Cryptocurrency itself is a bit complex to understand at the very first sight. Trading is one step higher. Above all, the user interface of these exchange platforms makes it more complex to grasp the things. Traders require a simple and easy to use interface.
An uncompromised cryptocurrency exchange does have some good altcoins accompanied with the top scorers. An exchange with wide number of pairs boosts the liquidity. It happens that the coin pair you are willing to trade isn’t available on your exchange. It is not possible to add every possible coin pair in the market and is not required as well. Just the good coins which provide good returns are required by the traders.
Cryptocurrency enthusiasts are willing to trade higher and higher. The need of hour is a power-packed cryptocurrency exchange which provides all these features at once.