Getting started in the crypto world can seem challenging. Today, there are hundreds of crypto exchanges and wallets to choose from when starting your investment journey. However, not all trading platforms are created equal, so it’s essential to understand the features of exchanges and trading apps before you commit to a specific investing approach. Here are a few tips for getting started trading through your phone and selecting a beneficial exchange app for your investments.
Research Trading Apps
Today, most business can be done through smartphones; this includes crypto trading and investing. First, you’ll need a mobile app that allows you to buy and sell cryptocurrencies. There are many options for trading apps, but before investing your time and energy into learning how to use one, it’s essential to do some research beforehand.
Here are some steps for researching trading apps:
- Check out reviews of the apps you’re considering. You can search Google for “best cryptocurrency trading apps” or similar phrases with words like “reviews,” “top 10,” etc., or browse through the top charts in your country’s app store. If a particular app has good ratings and many downloads, it might be worth looking at.
- Check out each cryptocurrency trading platform’s website and social media channels that appeal to you. Ensure they have security features (such as 2FA), easy-to-understand terms & conditions, regular updates on their progress towards becoming audited by third parties (such as security experts), etc. If they don’t seem transparent enough about these things, then something fishy may happen behind closed doors!
Compare Features
After you’ve identified the types of apps you want to use, it’s time to compare the features and find one that works for you. Keep in mind:
- The number of cryptocurrencies offered by each app. Some platforms may only provide a few options, while others have hundreds. This is especially important for people looking to trade altcoins as part of their portfolio. If a platform only offers Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), or any other top five coins but not Monero or Cardano, then that could be a red flag.
- Trading options open on the platform—is it just spot trading? Or do they offer margin trading? Do they accept limit orders along with market orders? What about stop losses or other advanced features? How fast is customer support when something goes wrong with an account? All these factors will affect your experience and whether or not it makes sense for you to sign up for an account at all—or if there’s another alternative out there that better suits your needs. The FTX app, for example, offers traders access to over 300 cryptocurrencies, margin trading, leveraged tokens, and options trading for advanced crypto traders.
- Look at the liquidity behind the exchange app. Liquidity is essential for successful trading because you need to be able to cash out your investment instantly whenever prices are in your favor. A platform without strong liquidity may not be able to support large numbers of users making large trades.
Consider Your Security
The security of your crypto assets is essential when investing in crypto. There are two main types: hot and cold storage. Hot storage refers to assets stored online and connected to the internet, while cold storage refers to assets held offline.
If you’re like most people, then your initial instinct might be to store all of your digital coins in a hot wallet because it’s easy and convenient—but this may not be the best idea if you have large amounts of money invested in cryptocurrencies. Hot wallets are generally more vulnerable than cold ones, so leaving large sums of cryptocurrency there could put them at risk if someone were able to break into them or hack into a website where they’re kept (such as an exchange). These are just a few things to keep in mind when deciding how best to store your cryptocurrency.
Sign Up for a Crypto Wallet
You’ll need to sign up for a cryptocurrency wallet to start cryptocurrency trading. Cryptocurrency wallets work like bank accounts: they store your digital currency and allow you to send it to other people.
A cryptocurrency wallet can take many forms, but most are software-based and have an interface that looks similar to something like Google Pay or Venmo. The first time you open your new crypto wallet, it will ask you to create a backup of your recovery key (similarly to how some online banking apps ask users for their passwords). This is important because if your phone breaks down or gets lost somehow—or if someone steals it—you’ll be able to restore access from another device using this recovery key. The process will also require verification of ownership through two-factor authentication methods such as text messages or emails sent by the app itself; this helps protect against hackers who might try breaking into your account through malware. Selecting a wallet interface with reliable security is essential for protecting your investments.
Trading crypto through your phone is easier than you may think but requires thoughtful research and consideration when selecting the right platform. There are many options for mobile trading, but not all offer every feature and function you may need. Start looking at your mobile trading options today and build your crypto investment.