Do you want to enter cryptocurrency? The first step is to choose an exchange system to buy and trade Bitcoin, Ether, Cardano, BNB or other cryptocurrencies. These trading systems, also called platforms, function as online brokers. But beware, the offer is wide. And if security is a major concern, the user will also need to consider rates, features, and product offerings.
Security to limit risks
An inexperienced crypto investor will pay particular attention to the security aspect. Many platforms are not regulated in Europe. This is the case with Binance, Coinbase or Kraken. Conversely, eToro is regulated in Cyprus.
Many platforms are registered with the Autorité des Marchés Financiers (AMF) as “digital resource service providers” (PSAN). In this case, they have received the approval of the French regulatory authority, which allows the customer to benefit from compensation from the Guarantee fund and deposit resolution in case of bankruptcy.
But on the security side, the essential point to check concerns the reliability of the platform itself. In fact, it is the platforms that hold the cryptographic keys with the risk of hacking if they are not sufficiently protected. Fortunately, their designers have developed high-performance devices with dual (2FA) or even triple (3FA) authentication, including facial recognition. In 2022 prudence is a must, scammers are on the alert, attracted by the extraordinary sums that circulate. Scammers rush into the slightest breach of security.
A complex tariff system
Transaction fees vary by platform. Some can be very low (down to 0.1%). Discounts can be given to the crypto investor depending on his experience and the amounts he invests. Fees are also significantly reduced when the investor owns the platform’s native tokens. But platforms can take up to 1.8% on every deposit made from a credit card. Added to this are withdrawal fees when funds are withdrawn and also exchange fees when different currencies are in play. Use a crypto platform comparator making your choice is the only way to find your way.
There are platforms for buying and storing cryptocurrencies, others for going further by actively trading them. Each profile has its own trading platform. Furthermore, if at the moment the number of cryptocurrencies available is estimated at several thousand, on some platforms the investor will only have the choice of thirty. This is enough for a beginner, but an active and experienced investor will be frustrated by not having access to multiple products, especially “altcoins”. To discover the richness of the platform’s crypto offer, but also check for derivative products (for leverage effects) or savings products, a comparator provides you with valuable help.
Convenience and additional services
Not all platforms exist as apps, which can be problematic if you want to manage your purchases or exchanges with your smartphone. Some interfaces are intuitive, others less so. Furthermore, users are sometimes confused by the number of options offered by the platforms.
The copy trading functions allow you to replicate the choices of the best traders. It’s a good way to get started, but not all platforms offer this functionality. Ditto for the social trading features that allow cryptocurrency traders to interact with each other.
For those who want to consolidate everything with a single broker, several crypto platforms allow trading of stocks, non-fungible tokens (NFTs) and even commodities.
Among other services to be studied: the possibility of obtaining a bank card that allows purchases in cryptocurrencies, cashback systems or reductions from partners who accept cryptocurrencies. Last but not least, depending on your level in the Shakespeare language, we will also check if the tutorials and customer service exist in French.
As you may have noticed by reading this article, the number of points to check before embarking on the crypto adventure is important. And it will not be easy to arbitrate between the wide crypto offer, advanced functions, fluidity and security. To choose the crypto platform that best suits your profile, one last tip: compare !