Bitcoin and crypto have been with us for over a decade now. Bitcoin didn’t assume the role it was created for, but it did become something else: An investment asset. In a matter of years, a whole trading industry has been created around Bitcoin and other cryptocurrencies.
Many trading platforms have started offering crypto as an asset that their users can trade, but pure Bitcoin trading apps might still be your best bet if you want to enter this market.
What Makes A Bitcoin Trading App Good
The reason why cryptocurrency/Bitcoin trading apps might be ideal compared to a general trading app with crypto as a feature is that apps and platforms explicitly created for cryptocurrencies don't have to account for other asset classes.
They typically hone in on features and tools specific to crypto-trading and don't clutter the app with metrics, analysis, features, and tools that cater to a wider range of asset classes. But even within the crypto trading app sphere, there are plenty of choices. To ensure that you make the right call regarding which Bitcoin trading app to choose, you have to understand what makes a trading app good and what characteristics you should be looking for in the right Bitcoin trading app for you.
To wade through a wide selection of Bitcoin trading platforms and apps to find the perfect fit, you need to make sure that the app is:
Reliable
The trading app where you might potentially invest thousands of dollars should be reliable. You should look into the reviews, the crypto exchange, how it’s regulated, and even how it makes money to make sure it’s reliable. If an app is offering you great tools and data without any fee or a sizeable spread, this can be a red flag unless it's an established app with plenty of other revenue channels. This is where apps like Robinhood shine because crypto is just one facet of their business. An adequate fee and credible reviews are good signs of a reliable trading app like https://cryptoengine.app
Regulated And Honest
Reliability extends farther beyond the scope of reviews and your own judgment. You also have to make sure the app you are trading crypto on is regulated and under the purview of relevant authorities. This doesn’t just ensure the security of your capital (while you own it, not from your investment decisions). It also keeps you on the right side of the tax authorities.
Transparency is another good characteristic, and you can gauge it from the way it markets itself and whether or not it’s open and honest about its revenue sources. The app that tries to hide things from its users and tries to bury important info in terms and conditions might not be worth your time.
Secure
Digital assets are just much a target of digital “thieves,” AKA hackers as conventional assets and information are. You need to ensure that your Bitcoin trading app has taken adequate measures to protect the assets that you trade and hold within the app. These measures range from complex cybersecurity layers to multifactor authorization and good wallet transfer practices (if it’s allowed). With a little research, you can verify whether an app is as safe as they claim or not.
Range Of Product
A comprehensive range of trading products that a Bitcoin trading app might offer includes:
- Bitcoin
- Altcoin
- Crypto Derivatives
- Margin Trading
- Futures
- Spot Market Exchange
The app that offers most or all of these products might be a better choice (even if you don't delve into all of these products right away) because it merely gives you more options. And as you progress along as a crypto trader, you might want to try other avenues as well, and that's when a full range of products comes in handy.
Features And Ease-Of-Use
Like products, the full range of products would only be useful to you when you have some experience, but it’s still important to have a comprehensive range. Watchlists, instant coin converting, a hot wallet, etc., are just some of the rudimentary features, and there are several more that can benefit you if you know how to leverage them properly. Even as a beginner, you should have an investment strategy, and you should look for features that allow you to execute that strategy. An easy-to-use app will not frustrate you and make your life as a trader easier.
Conclusion
There are several other characteristics as well, but these should give you a good start. It might take time to find the app you like best, and it might even be a good idea to try a bunch of them before settling on the perfect one. But remember, at the end of the day, even the most perfect and ideal Bitcoin trading app won't prevent you from making bad trades. So focus just as much on your research and trading strategy as on finding the perfect app.
Published: 03/10/2021