Cryptocurrency trading is the next big explosion in the world of investing and capital gains. These digital assets are blowing up in the commodity wallets of investors, and Ethereum, Bitcoin, and Litecoin, to name a few, are exploding in price as a result.
Getting into crypto trading might sound like a fantastic idea, but starting out as a beginner investor in this new space can be challenging. Finding the best trading platform for your needs requires some significant reading and often a “test drive” of a few different options to get a feel for the tools and inclusions that come along with what will eventually come to represent your preferred cryptocurrency exchange. Searching for “best trading platform Canada” is a great way to begin this search, but to finish the chase after the perfect exchange for your needs, you’ll need to keep a few metrics in mind.
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Fees
All crypto exchanges charge fees in some capacity. Understanding the structure of fees that fit best with your needs and expectations is crucial to finding an exchange that works for your cryptocurrency trading strategy. Some platforms (Coinbase, Binance, Kraken, etc.) offer lower fees for certain types of trades and plugins. Coinbase, for instance, offers users of its “Pro” version a lower fee structure, yet they must contend with more robust trading options in order to get the most out of the platform.
Choosing a cryptocurrency exchange should always begin with the fee structure. These constitute the majority of your outgoing expenses—in addition to the capital gains taxes, you will be on the hook to pay during each new tax year. As well as the standard fees that you pay per trade or as a percentage of your holdings, using a crypto tax calculator is a great way to make sense of the remaining draws on your overall holdings.
Speaking of taxes, it’s important to remember to file your capital gains income with your tax return each year. Many platforms and plugin services make this process far easier, but remembering to settle up with the IRS remains a personal responsibility for those who want to remain compliant with the law.
Research
In addition to a calculation of your outgoing expenses, the research products provided by a trading platform are crucial to making successful trading decisions. Many platforms today offer users access to reports and data products that can help them understand the swing trends and long arc movements of the commodities they are tracking, however, each broker is different in its packaging and access.
Learning how each of your options stacks up against one another is important when selecting a crypto trading platform that will help you to compete in the marketplace for massive capital gains.
User-Friendly Features
Lastly, it’s important to weigh up the user interfaces of each platform. While the ease of access may be less (or perhaps more) important to you in the long run, it remains something that should be given a proportional weight in the decision-making process. Fee structure or research might come in ahead for your personal trading style, but if you can’t quickly and easily execute the position changes that you want, you will still be at a disadvantage.
Many trading platforms offer a mobile app that provides a sleek feel for the investor and a stripped-down interface that places the key features out in front. In this case, if you need to utilize additional plugins or services, you can log in to the full desktop site for full-service trading space.
Weighing these facets of a trading platform can help you make the best decision when it comes to placing assets in a new portfolio. Make sure you take the time to understand what you are looking for in order to make the best decision for your personal trading style and needs.