By Mark Ackman
After a long and a cruel year, the crypto industry has started to recover in the running year. The industry is back in business and many investors want to increase their gains. However, people are blindly entering the crypto trading markets without doing any proper research about the brokerages they are joining.
With the passage of time, it has been realized that it is important to choose the right brokerage (trading platform) for crypto trades. If you are reading this then it means that you are eager to know what kind of brokerage you must join.
Brokerage must be regulated
When entering the world of crypto trades, the first and foremost thing you have to do is find a trading brokerage that has a reputation in the crypto market.
It is important that the particular crypto trading brokerage has to be regulated. The brokerage has to be regulated with the know-your-customer (KYC) and the anti-money laundering (AML) guidelines.
If you interact with a regulated brokerage, it can offer you a professional and a risk-free environment, where you can perform trades without any worries. Such brokerage may not offer guaranteed profits but it may offer a professional environment where you can trade without worrying about losing your funds as a result of the brokerage getting shut down.
Brokerage must not Make Unrealistic Promises
When on the lookout for a crypto trading brokerage, it is important you do not get fooled by a brokerage promising unrealistic profits and gains.
There is no crypto brokerage or an expert trader that can promise guaranteed returns on investments. If a platform makes such claims, it is important you get to away from such platform as soon as possible.
Such brokerages want nothing but money and to lure you, they would make promises they have no intentions of keeping in the first place. All they want is to bring you onboard and have you make an investment. Once you’ve made the investment, they simply turn a blind eye at you so you cannot complain to them about anything.
Please bear in mind that a platform guaranteeing huge returns is nothing less than a scam so you should not get lured by such platforms.
Brokerage Must Offer Abundance of Trading Options
If you do find a brokerage that manages to pass the above checks, then the next check is to find a platform that offers multiple trading assets. Most of the crypto trading brokerages offer just a few cryptocurrencies to perform trades. Such platforms limit your trading capabilities by confining you to certain major assets.
The crypto industry has more than 24,000 unique cryptocurrencies, so it wouldn’t be fair if a brokerage offers only a few cryptocurrencies.
At the least, a brokerage must offer a hundred or a couple hundred cryptocurrencies that you can choose from.
Brokerage Must not Demand Huge Initial Investments
Another thing you need to keep in mind is that the brokerage you are going with does not require you to make huge deposits and investments in cryptocurrencies. It should keep the investments to a minimum so you can perform trades without putting any pressure on your pockets.
Because you are entering trades for the first time, it is important that you do not go all out with investments. Instead, you should choose the crypto and then make a small investment comprising of a few bucks to see how things go. Once you have gotten the hang of the trades, you can increase your investments but there shouldn’t be any pressure coming in from the broker.
Brokerage Must Offer Trusted Payment Methods
When interacting with a brokerage, one of the most critical things is the safety of your funds. You wouldn’t want to deposit your funds on a platform that fails to protect them or fails to offer a safe channel for their protection.
You should go for a crypto trading platform that lets you deposit funds using Visa, Mastercard, bank wire transfer, and through crypto wallets. These are considered as the most convenient and secure payment methods that you can use to make deposits and withdraw funds from the online platforms.
If a trading broker offers a payment method that is not trusted or is not recognized, it is important to avoid them. Such payment methods are secure and there are high risks of your funds getting stolen by the hackers or exploiters.
Brokerage Must Offer Strong Security for Transactions
The SSL Security Protocol is considered as the industry level security system that hides data with encryptions. Only the authorized personnel are able to access such information and if a trading brokerage offers that, you should go with it right away. Using such a technology, the crypto trading brokerage can offer you a great level of support and protection with encryptions. This way, the hackers cannot think of trying to steal such data or access it in any way.
Brokerage Must Offer as Much Support as Possible
It would be cherry on top if the crypto trading brokerage you are going after offers you all the support you need. The platform must let you reach out to them if you have any queries or concerns you want to discuss. It should offer a wide range of support channels that may include phone support and email support.
The trading brokerage should also provide you with more support in the form of education and learning. Yes, you may continue trading in cryptocurrencies but it is imperative that you continue gathering more knowledge and information about cryptocurrencies.
It is also important that you also continued gathering insights and other kinds of information about cryptocurrencies and crypto trading markets. If a brokerage supports that and offers you the content to increase your knowledge, then that is the brokerage you should go for.
Conclusion
It is always easy to join a brokerage without enquiring about it and throw away money if you have lots of it. If that is not the case, then it is important you spend some time to establish what kind of crypto trading brokerage you are becoming part of. If that is the case, then it is important you keep the above requirements in mind.