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Spot trading platform is one of the most basic forms of investment in cryptocurrencies. It is a one-way system where you buy and sell a currency when the prices rise. As you hold the currency, even if the price drops, it’s considered a safer venture. So, all those who want to skim profits can benefit from spot trading platforms, provided you put the profits back in when the prices drop.
A crypto spot trading platform facilitates a seller to meet a buyer. There are dozens of exchanges offering spot trading platform facilities. You can find substantial information about these platforms from trusted online sources and by going through write-ups like Phemex review. They will help you with choosing the right crypto spot trading exchange.
What Must You Check Before Selecting a Crypto Spot Trading Platform?
Opening an account with an exchange is a pretty simple task. It usually requires submitting some details about yourself. Some exchanges may open an account on your email ID, while others may ask for personal information like name, contact, or ID proof for the KYC process. It’s your choice if you want to go private or disclose your details to the exchange.
However, there is no harm if you do the KYC process as your details will be safe with the exchange. You can go through privacy and data safety policies to ensure if your data is safe.
Transaction fees and commissions are a critical aspect when choosing a trading platform. As the fees differ across various exchanges, you need to check each of them carefully. If you are trading in big volumes, this could be a real brainer. The fees are usually charged as exchange fees, trade fees, and deposit or withdrawal fees. Though some exchanges offer discounts on first-time registration or exchange fees.
- An exchange fee is a charge for using the exchange’s software. It is majorly influenced by your coins and the type of trade you do.
- The trade fee includes taker and maker fees and is charged when you buy or sell currencies. For example, as per trusted Phemex reviews, Phemex charges a 0.075% taker fee and -0.025% maker fee on all derivatives trading pairs present on the exchange.
- The deposit and withdrawal fees are charged on depositing and withdrawing funds to and from your account.
A mobile-accessible trading platform is beneficial for trading on the go. It’s a convenient and cheap way of trading as you don’t need to carry your laptop all the time. If your exchange has an app or is accessible through a mobile browser, it will save a lot of your time and energy.
Having your trading account on your smartphone will mean you can stay updated about the market and your trading status. The interface should be user-friendly and supportive, offering the same experience you would have on your browser. Make sure the app is supported on your IOS or Android device.
When you buy cryptocurrencies, an exchange can accept payments through debit card, credit card, PayPal, or bank account. Some exchanges support fiat currency too for crypto trading. But, remember not all platforms accept these modes of payment. A crypto-to-crypto exchange only accepts cryptocurrencies as deposits.
Therefore, you need to check if your platform supports fiat to crypto, crypto to crypto, or both. Also, check the currency list it accepts for deposits, as it might not support the currency that you own or want to deal in. It is important to note how much time your transaction takes to complete. Some platforms process transactions faster, while others may take days or even weeks.
Supported Trading Pairs
Supported cryptocurrencies vary across different exchanges. Some exchanges trade a long list of cryptos, whereas some might trade only popular currencies like bitcoin and Ethereum. Your exchange must support a wide variety of cryptocurrencies and trading pairs. It will give you the flexibility to trade in different coins. You may refer to trusted Phemex Reviews for information related to trading pairs.
Ethereum/Bitcoin Cash (ETH/BCH) and Bitcoin/Litecoin (BTC/LTC) are examples of trading pairs. The trading pair also helps you in comparing the price of one cryptocurrency against another. Many trading exchanges will offer you fiat trading pairs such as BTC/USD. You must check the list of supported coins and pairs on the platform.
When choosing a spot trading platform, you need to balance your considerations. All exchanges are different and have different ways of dealing. Your choice should determine your trading needs. Above all, the platform you choose must offer you a safe and smooth trading experience. Try to weigh all your options and find a reliable exchange.