Cryptocurrency is taking off in a big way – all through the global economy, there are more individual traders, institutions, high-net-worth whales and other parties getting invested in many different cryptocurrency tokens and digital assets. But the landscape is particularly complicated in several ways. It can be highly fragmented and isolated. There are also a lot of attributes and characteristics to keep track of across multiple cryptocurrency exchanges and platforms.
How do you keep it simple when getting involved in cryptocurrency?
These quick tips will help you to consolidate your activity and make crypto trading quicker and easier over time.
Demand Secure Access
As we’ve seen in the news, different crypto platforms and exchanges have seen radically different results. Some of that take a granular approach to ownership but not to KYC have been prosecuted by regulators, including those in the United States.
So one of the best tips is to look for a safe, secure trading platform. This often involves noncustodial arrangements where platforms utilize an API or other means to deliver value without controlling your assets directly.
Access Many Pairs
As mentioned, the cryptocurrency world is diverse. You have front-runners like Bitcoin and Ethereum, whimsical choices like Dogecoin and various Bitcoin Cash hard forks, and cerebral choices like Litecoin, Polkadot and Cardano.
What you want is to be able to access the pairs that make sense for you – trading your dollars and other fiat currencies into and out of different crypto coins easily. That means the platforms that can offer you better liquidity and better access are valuable to you as an investor.
Look for Transparency
Decentralized finance offers many key benefits to investors.
Unlike the bank verification systems of the last century, defi systems have built-in transparency. Decentralized coins with consensus-based verification can be involved in permissionless, frictionless trading. Everything is in an immutable ledger context, meaning that it’s completely transparent. But how the exchange is operated makes a difference. Layers of abstraction can compromise that transparency. This is something to look out for as an investor.
How do you do due diligence and asset discovery and portfolio tracking?
Some traders are familiar with this in the equities world, but not as much in cryptocurrency. They need help to do that initial research in a way that’s efficient and practical.
Platforms that offer built-in portfolio tracking tools and analytics also have a lot of value to beginners and seasoned traders alike.
To some investors, tax burdens are the worst part of any cryptocurrency investing strategy. They may be confident about the future of Bitcoin or some other coin, but less confident about their ability to work with a national tax regulator like the IRS.
How do you deal with all of the above problems, and source all of the above solutions?
As a liquidity aggregator and…
Read more:Simplify Your Crypto Trading in 2021