What to consider when trading cryptocurrency in 2021
What do traders expect from high-quality, modern exchange services and aggregators? This has a lot to do with the context of the industry — what people do with their assets, and the choices they should use to navigate the larger financial technology ecosystem.
Factors for choosing trading resources
What does a crypto trader expect to see when choosing a platform for investing in crypto, especially if it is related to DeFi? Correct, reliable, safe, profitable and convenient to use.
Here are some of the things that contribute to the work of excellent platform services for cryptocurrency and defi exchanges that want to move forward in the field of decentralized assets.
- Low fees and possible throughput
One of the things that cryptocurrency has brought to the world of finance is the types of simple and easily verifiable transactions that reduce the cost of providing services. The best exchanges and related platforms convey this to users in the form of low trading fees. The scalability and design of these systems means that administrators can take advantage of the underlying efficiencies that empower their users.
- Regulatory challenges
Many of us have heard about what happened on BitMEX, OKEx, Kraken, and Ripple … and the list goes on — the cryptocurrency sector is rife with conflicts between regulators and regulated parties. Exchanges that comply with regulatory requirements often outperform those that do not, and provide more investor confidence.
Think about these aspects of the crypto exchange and the interface design. It should be an aggregator that works with attention to the above quality principles, with thousands of pairs, low commissions for trading, and much more. Get security and access to a well-designed sandbox for cryptocurrency transactions.
- Liquidity Aggregators
The best platforms are able to combine many disparate activities from platforms such as Coinbase, Kraken, Bitfinex and other resources of the cryptocurrency world to offer traders a more extensive menu. This is more than just an academic exercise — having more than one exchange platform in a particular interface gives users access to more of them in real time when planning their investment strategies.
- Portfolio tracking, event notification, and more
Of course, it is important for end users to know what is happening during a given market session. A good trading terminal will achieve this by offering various types of transparency resources. Traders can take difficult positions. They should be able to see this at a glance, and should also be able to understand if any events of great volatility are occurring.
All of this contributes to more informed trading sessions, and new exchanges need to think about how they offer these features.
- Time and availability
One of the worst situations for traders is when they can’t access their assets and trade them in real time.
Unfortunately, crypto exchanges are not always protected from unplanned downtime, which can create problems in different ways. The best exchanges will use redundant availability zones for maintenance, even during peak trading or various kinds of emergencies.
- Secure Wallet Profiles
Exchanges are also working to reassure traders from a cybersecurity perspective. Through a combination of proper security measures and non-custodial brokerage structures, end users should be confident in trading without the threat of internal hacking affecting their wallets or what goes in and out of those wallets on a regular basis.