1. ARYA
  2. >
  3. Blog
  4. >
  5. Everything you need to know about cryptocurrency platforms

20/10/2021

Everything you need to know about cryptocurrency platforms

Looking for a good investment? Have you thought about virtual currencies or cryptocurrencies? Not only are cryptocurrencies highly popular these days, but according to experts, the crypto-currency trend is set to last! Some even predict that within a few years, real money and currencies as we know them will no longer be in use. 

In terms of financial investment, cryptocurrency comes in many different kinds, allowing you to trade and diversify your wealth with ease. To get into this kind of investment, you have the choice between several cryptocurrency platforms. All you need to do is choose the right one!

How can you buy crypto-currency ?

To begin your crypto trading operation, you need to start by buying crypto currencies on a cryptocurrency platform. There are many steps you need to take to get started with this type of investment.

Choosing your cryptocurrency platform

The choice of platform is very important. This will enable you to create your account and embark on all the operations affiliated with your investment projects, such as bank transfers, and crypto-currency exchange. This is the guarantee of the success of your investment, so this step is not to be taken lightly.

There are many details to consider when it comes to finding the right trading platform. While some people simply follow trends and news, experts advise you to look a bit further. 

Opening your investment account

Once you have found your trading platform, you’ll need to create an investment account. All you have to do is fill out a form, just like registering on a social networking site. The whole process only takes a few minutes.

On some sites, it is possible to create test accounts. This is an excellent way to evaluate the performance of various platforms and to compare them to be sure to make the right choice. Initial registration is usually free, and fees will be added afterwards.

Your investment account will allow you to both buy and sell crypto-currency. You can also keep your investments in order to hope for a better market development and thus build up a nice capital over several years. Bitcoin, for example, is a long-term investment.

Transfering money to your account

After opening your account, you’ll need to deposit money into it by bank transfer. You are free to choose the amount of money you want to put into your account in order to facilitate all future operations.

It’s obviously important to choose a secure cryptocurrency platform that has a good reputation on the market. 

  • Positioning on a stock portfolio

You are now ready to invest in cryptocurrency. All that's left is to position yourself in a stock portfolio. You're going to have to choose which market you want to put money into.

On some platforms, it is possible to buy crypto-currency in several currencies and not only in Euros. You also have the option to buy in Dollar, Pound Sterling or Yen. Whichever you choose, the transaction fees remain the same.

Choosing your investment leverage

Before you complete your purchase, we advise you to choose an investment leverage. Admittedly, this choice can be risky, but can still allow you to boost your earnings.

Crypto-currency trading sites can offer you various levels of leverage support. This leverage will, for example, be capped at 2 for Bitcoin and can go higher for other types of investments like Ethereum. The higher your leverage, the more you can earn with your investment.

Choosing an investment leverage is a popular crypto trading technique for both experts and some novices. But it is not mandatory: the choice is yours.

Setting up your investment

The last step is to set up your investment to make it more secure. You can cap both losses and profits on each transaction.

Remember that cryptocurrency is defined as "a virtual currency, created by individuals to be used among themselves, and this, without passing through the hands of financial institutions of any kind". The stability of such a currency is therefore very relative. You won’t be safe from a sudden drop in the market, both with classic virtual currencies and older ones like Bitcoin. Setting your investment is therefore important to avoid accumulating losses.

Not to mention that the Bitcoin market and crypto-currencies are also subject to the vagaries and trends of the market. For example, in 2020 there was a drop of several thousand euros for Bitcoin and a few hundred euros for the rest of the digital currencies.

Which platform should you use to buy crypto ?

The first step to getting into crypto trading is to choose the right platform through which to create your investment account. This is not as easy as it sounds, as there are many available options. You can't just jump on the first site that comes along and risk losing your capital.

Here are some tips you can use to choose your investment platform

Compare the fees charged by the platforms

As mentioned above, sites charge fees for all transactions that take place on their platform. So, this is obviously the first comparison criterion you need to consider when choosing the right cryptocurrency platform.

These transaction fees include:

  • Deposit fees. As soon as you make a transfer to your account, the sites take a commission. This varies according to the size of the capital and the type of payment chosen (cash or credit card transfer).
  • Transaction fees. As you know, for every cryptocurrency sale or purchase transaction, you owe a commission to your cryptocurrency platform.
  • The "spread": this is a fee on the profits you received after selling one share to buy another for less. The platform takes a commission on the difference.
  • Withdrawal fees: this fee may be charged when you claim back the proceeds of your transactions, withdraw the money, or close your account for example.
  • Currency conversion fees. On some platforms, you bet more on one currency rather than another. If you don't use the right currency, it will have to be converted by the site in question, which will take a commission for this operation. This is why it is highly recommended to opt for trading platforms that work with multiple currencies.

Read reviews of cryptocurrency platforms

Reviews can be a great help. This includes reviews on forums and guides or comparisons of any kind. Former users will give you a clear idea of how an investment site works.

Internet users tend to review, among other things, the reliability of trading platforms, speed of transactions, security, and user-friendliness. This gives you a clear idea of how they work and allows you to sort through them more quickly.

But be aware that reviews are just opinions. They are not enough to allow you to really make a choice. Other details and characteristics must be taken into account.

  • Compete the functionalities of the sites

Comparing the various features of investment sites can also influence your choice. On some sites, for example, you will have real-time monitoring of current events, an estimate and graphs of market trends, advice from experts on what transactions to make, etc. This will allow you to make more informed decisions.

The size of the stock portfolios will also not be the same from one broker to another. While some have several dozen promising crypto-currencies, others only offer Bitcoin and Ethereum, for example. This leaves you with little freedom when it comes to diversifying your investments.

Finally, it is best to always turn to sites that offer you the ability to invest in multiple currencies. This saves you conversion fees and allows you to customize your transactions.

The best crypto currency platforms

According to the market survey, two platforms stand out among all the available options.

Coinbase

Coinbase is an American platform. It is one of the best known in the crypto trading world, despite the rather limited options. Nevertheless, the platform is still very popular with novices. On Coinbase, choosing investments and managing portfolios is easy.

The site is simple to use and it is very easy to buy and trade crypto-currencies. But be warned, this quality of service comes at a price. For a wallet of less than 500 euros, you will have 9.95 euros in fees. It is among the most expensive in its field.

Binance

Binance is also one of the most popular trading platforms because of its maximum fee of 1.25 euros for a portfolio of approximately 500 euros. The ease of use and user-friendliness of this trading platform are also among its plus points. For each transaction, the platform will only charge you 0.1% of the amount.

The platform has an excellent reputation. Trading experts and novices alike appreciate it, as it offers a wide range of stock portfolios to choose from. It therefore allows for great portfolio diversification.

Which crypto should you choose ?

In 2020, financial investments were affected by Covid-19. Crypto has not escaped the health crisis. For example, Bitcoin, despite being the most stable, lost almost 20,000 euros in value. Ethereum fell by almost 500 euros. All other stock portfolios were affected.

Bitcoin

The oldest of the crypto-currencies, Bitcoin remains the best known and most used. Its age provides a certain degree of stability compared to the others. This explains its current value. Indeed, in the virtual currency business, the more a currency is used, the more it gains value.

After a big drop during 2020, Bitcoin is picking up momentum again in 2021 and still makes up 50% of the transactions in the cryptocurrency trading field. Currently, its value is trading in the range of 30,753.76 euros. It is a good investment to make in the long run. On some sites and with some businesses, you have the option of using bitcoins to pay for your purchases, which is practical.

Bitcoin remains the most legitimate of the digital currencies. Its strong market presence ensures that you have optimal liquidity at any given time. This makes it perfect for those who are taking their first step into this kind of investment.

But be aware that there are still risks. Bitcoin remains a volatile cryptocurrency, and the market can fall at any time. To minimize the vagaries of your investment, start with a small amount and regulate your transactions by avoiding large expenses.

Ethereum

Ethereum is among the most promising cryptocurrencies this year. It is a digital currency that is young, but ambitious. For the record, it was created by two entrepreneurs a few years ago. Adhering to cryptocurrency standards, this currency is not run by any organization. It is one of the first variants of digital currency. 

After losing more than half of its value in 2020, Ethereum has also been slowly recovering since the beginning of 2021. Currently, it offers a value of about 2,026.38 euros per unit. The currency is becoming more and more popular among investors, because it aims to be innovative in the decentralized finance field. 

The majority of crypto-currency trading platforms, if not all, currently offer Ethereum. After Bitcoin, it is one of the most popular options. But this new trend is not necessarily appreciated by everyone, especially by some novice traders. The fees to invest in Ethereum are getting higher and higher.

At the same time, Ethereum is a victim of its success. Over the years, its user community has grown considerably.

Ripple

Also known on the Blockchains as XRP, Ripple, the first cross-border cryptocurrency, comes in third place. Ripple can be considered a long term investment. In its early days, it was a digital currency that was meant to facilitate financial transactions around the world. It has become an excellent investment medium.

Ripple is becoming a major investment trend thanks to its user-friendliness and the low fees that trading sites charge for transactions involving it. Nonetheless,  it is still far from the value of Bitcoin or even Ethereum. At its opening, RXP cost 0.7079 euros. We can expect its price to rise to 0.7204 euro in the coming months. But the ceiling that this currency has never reached is 0.7435 euro.

Another advantage of Ripple is that it is one of the few crypto-currencies managed by an institution (Ripple Labs), enabling it to attract the interest of banks around the world. This provides it with a certain degree of stability.

Be aware however that a large portion of this cryptocurrency is owned by its founders. This is a major drawback when the majority of shares are held by a minority.

Dogecoin or DOGE

Dogecoin or DOGE is one of the crypto-currencies that emerged in the last 10 years, making it a young but nonetheless appealing option. According to expert estimates, it is among the most promising this year.

Created in 2013, DOGE enjoys a good reputation in the market and is appreciated and used by an active community, providing it with a certain degree of stability. 

However, yields have remained the same since its inception. Currently, a DOGE costs 0.254 euro. At least the risks of a fall are very small.

So why is the DOGE a trend-setter? To begin with, it is supported and used by well-known personalities who have been seduced by its stability. It is a good investment to make if you are not in a hurry and are looking for a long-term portfolio.

However, apart from filling your wallet with stock, DOGE doesn't serve much purpose. It's not a recognized virtual currency like Bitcoin. You can't use it to pay for your purchases.

 Other crypto-currencies are starting to find takers in the market - Litecoin, Monero, Cardano, Chainlink, etc. Over the past few years, crypto-currencies have been popping up en masse. Obviously, some are more successful than others. Besides the trend of the moment, choice remains quite personal. It's all a matter of taste. Take the time to analyze their advantages and disadvantages before making your choice.

Want to get into crypto currency investments? Get professional advice. Yann Darwin offers guidance and detailed expertise on the subject on his Youtube channel.

Most importantly, to actually invest in virtual currency, you need to take part in crypto exchange, i.e buy as well as sell. There are sites that enable you to do this easily. 

Want more

Great! Have all this goodness sent straight to your inbox as soon as we have some hot news to share. Stay informed!