The crypto market has a bad reputation for scams, rug pulls, exit schemes, hack, and worse. The industry itself is still very young and a bit of a Wild West as a result. Anyone can suddenly mint coins, and new projects or exchanges are popping up by the passing day – how’s an investor or trader to choose a platform that’s safe and reliable?
Doing so becomes more difficult as time goes by, however, we’ve developed a set of tried and true tactics that can help anyone spot the hallmarks of a trustworthy and therefore safe trading platform. Once you know the signs, you can rest a lot more easily at night knowing your capital is hard at work on a platform that will keep it as safe as you would for you.
Here’s everything you need to know about choosing a safe cryptocurrency trading platform. The practices themselves can be applied to any market, but is especially crucial for crypto market participants given the lack of regulation and anything goes policies.
What Makes A Safe Cryptocurrency Trading Platform?
A lot of factors go into selecting a safe and secure cryptocurrency trading platform, and it takes a lot of research and footwork to find out who is the best. First and foremost, looking for any type of industry recognition is a major factor in determining if a platform is safe.
If industry peers, influencers, or others have taken notice, or if awards have been honored of any kind, it is often representative of a reliable trading platform through and through. Awards aren’t just handed out for any reason and it shows the trading platform likely beat out many other nominees in the same category. If that platform beats others, doesn’t that suggest there’s a better experience to be had?
Some of these clues aren’t as obvious. For example, not every platform provides data on platform uptime to the public. Certain platforms, such as the award-winning PrimeXBT, offer transparent metrics that display as much as a 99.9% uptime rate. With so few outages or hiccups, traders are never interrupted when markets are at the hottest by poor technology. 100% uptime is simply not possible or this means that the platform never completes any updates or upgrades to performance, or is a bold lie – beware of claims of 100% up time.
A trading platform’s infrastructure is the next place to look. Traders should consider the type of technology the platform is running on, if it is proprietary or a run of the mill software experience. Are there any unique experiences that run on the infrastructure? These are typically signs of an active developer who cares and hones their product.
Scoping Out The Platform’s Reputation: How To Do Your Own Research
Has the platform ever been hacked? What type of account level security is offered? Always look for things like two-factor authentication, address whitelisting, and more to ensure any crypto wallets are protected before making any deposit. Always start slow to test the waters, so look for platforms with little to no minimum deposit to get started. This way even if you have found the right place right off the bat, you can keep risk low and capital slim until you’re more comfortable later on.
Next, be certain to consider and check up on a platform’s reputation. Don’t just take their word for it – every platform says they’re the best and says their customers love them. But remember, even a platform can pick and choose which customer testimonials to display. That’s why also looking into each platform’s social media community is crucial to picking the safest platform around.
Social media users are vocal and if genuine, will be roaring if the platform is good or bad. If it is failing to protect funds, or there are widespread issues, you won’t be able to ignore the comments online. However, if everything is running smoothly, customers seem happy, and there’s an active trading community, then it is likely the platform is safe.
If there’s a large social media footprint in general with clearly marked official channels, then even more so it is likely that the brand is one that is worth your capital and deposit. That finishes up the most important reasons related to choosing a safe platform, and leaves the personal taste factors up to you.
Picking A Safe Cryptocurrency Trading Platform Based On Your Needs
Beyond safety alone, picking a cryptocurrency trading platform has to offer the tools a trader needs for success, or else what’s the point? The safest platform in the world is one that no one even uses because there’s no attractive trading instruments or features to speak of. It garners no attention so hackers won’t even care to look that way.
Be certain to also choose that anywhere you make a deposit also has everything you need to be successful. This includes built in technical analysis software, margin accounts, long and short positions, and much more. All of these tools should be easily accessible and simple to use, yet deep enough for professional or advanced users.
If you are the on the go type, looking for a platform with a free smartphone app is a must. Without it, traders are stuck trying to use clunky mobile sites which don’t translate well from the desktop experience. Added touches like a referral program or copy trading can be a deciding factor between the final platforms you’re stuck between.
When all else fails, PrimeXBT is a great choice considering its industry awards, more than 50 trading instruments under one roof, long and short positions, and so much more. There’s free charting software, a free mobile app, and there’s no minimum deposit to begin so there’s less risk overall.
PrimeXBT is an award-winning margin trading platform that offers CFDs on forex, crypto, stock indices, commodities, and more. The platform is esteemed among industry influencers, never experienced a hack, and runs on some of the most reliable tech on the net. There’s also copy trading, a four-level referral program, and several unique ways to get positioned in the market.