Some people will tell you that the best way to trade cryptocurrencies is just to start trading them. But let’s face it, not everyone has the time or inclination required for crypto trading. And if you don’t understand what you are doing buying and selling cryptocurrency, then your losses can mount rapidly. That’s why we have put together this article all about the many failures of crypto trading platforms for beginners and risks to read about first.
The 12 Most Common Cryptocurrency Trading Platform Failures To Know About Before Using Them
Here is the list of failures of crypto trading platforms to deal with, all of which can lose you a lot of money if you don’t know how to avoid them.
1. Trading Fees
The first failure that we are going to look at is the issue of transaction fees. And this can be found within every crypto trading platform that exists today. The problem is that not all crypto trading platforms will make their fees clear from the start, and most people don’t realize until it’s too late. This is because crypto trading platforms charge you depending on the type of order you place, and it can be entirely different for each platform. So what are the problems here?
2. The Types Of Fees
You will find two types of fees with cryptocurrency trading platforms. Commission fees and exchange rates. Commission fees are calculated as a percentage of your total trade amount. Exchange rates are an alternative to commission charges but are added to your trade amount before being calculated, so it’s essential to understand the difference between the two.
Commissions are one type of transaction fee that some crypto trading platforms will charge you for using their services, although others may include them in exchange rates instead. The good news is that you will find some crypto trading platforms that don’t charge commission fees. However, the majority of them do. The amount that cryptocurrency exchanges charge will vary, though, depending on which platform you use. While most will offer commission fees in one-percent increments between 0% and 5%, this won’t be the same for every one of them.
Some crypto trading platforms will charge you commissions and exchange rates (often called ‘trade fees’). They are calculated differently from commission fees. They are added to the total value of your trade before being processed, so you will need to consider whether you are better off using the exchange rate or the commission fee for your specific trading platform. The one thing that’s for sure is that if you don’t know how much the fees will be on any given day, it can put a real dent in your trading profits.
3. Lack Of Attention
It’s tough to monitor all of your crypto trading platforms at once, significantly if you’re investing in different coins and tokens… which is what most crypto traders do when they start. This can lead to you missing out on important information about transfers, deposits, and withdrawals.
4. Only One Type Of Transaction
A lot of crypto trading platforms will only offer a kind of transaction (order). So if you want something different, it means moving your money over to another platform – which takes time and effort. If you are looking at an INX cryptocurrency trading platform that has only one type of transaction available, it’s unlikely that this is the platform for you.
5. Changing Your Selection
As well as being able to trade only one type of transaction, some crypto trading platforms don’t allow you to change your choice once you have made it to be executed. There are a few rare exceptions, but they are the exception rather than the rule.
6. Difficult Interface
Most crypto trading platforms aren’t exactly easy on the eyes – especially if you are new to the area! If this is your first time using a cryptocurrency exchange or broker, be prepared for some difficulty navigating their platform.
7. Lack Of Liquidity
Most crypto trading platforms only offer a minimal amount of liquidity compared to the number of people currently using them. This means that you are more likely to find the prices are either over or under-priced, which can upset your trading strategies.
8. No Fiat Withdrawal Options
Most crypto trading platforms do not allow you to withdraw money in fiat currencies, meaning that if you lose money on your trades, it’s unlikely that they will give you your money back! If you want to withdraw fiat currency, then this is what we refer to as the gateway problem.
9. Lack Of Support For Traders
Trading is stressful enough without having to handle all of this on your own. That’s why it’s essential to look for crypto trading platforms that offer support for traders. This could be in the form of an FAQ page and includes things like added security and access to customer service.
10. Only Certain Countries Supported
Another thing to check is whether your country appears on the list of supported countries for crypto trading platforms. If it doesn’t, then you may find it hard to get your money in and out of your account – let alone having enough liquidity.
11. No Mobile App
If you want to access your money 24/7, then a lot of crypto trading platforms will have a mobile app available. However, this doesn’t apply to every one of them, so you will need to make sure that you check before signing up.
12. No Multi-Lingual Customer Service
You may want to use a crypto trading platform that supports multiple languages, but most don’t. For instance, only Binance and Bittrex currently offer support in Spanish, French, and German. So if you want to use a crypto trading platform in one of these languages, it’s best to check with them before you join.
So these are the 12 things that you need to consider when comparing crypto trading platforms. These financial factors will help you narrow down your search and make the process of finding the proper cryptocurrency exchange or broker much more accessible. However, most people aren’t even aware of half of these issues for their Bitcoin (BTC) or other cryptocurrencies until it’s too late. They waste time on crypto exchange platforms with poor service and slow customer support teams before finally giving up altogether on cryptocurrency trading. To know more, research on the best trading platform and use coupons like blockfi referral code to save.