Synopsis: In this article, we will look into the definition of crypto platforms, criterias to judge any crypto platforms and the examples of best crypto platforms.
Crypto platforms refer to the digital infrastructure or application where you can buy, sell, trade and store cryptocurrencies. Crypto platforms are broader compared to crypto exchange.
What criterias shall be used to judge any crypto platforms?
Security should be your top priority
- Prefer platforms that store at least 90% of user funds in cold wallets.
- Use platforms that have insurance policies to protect the funds from being breached.
- Try preferring platforms which will provide features like two-factor authentication, security keys, account security, withdrawal allowlisting, multi-signature, and Proof of Reserves.
User interface
- Look for a better interface to ensure smooth flow of essential functions.
- Working on a better user interface will help you to trade at ease, and it will also take less time for you to adapt to that platform.
- You can spend more time in strategising the cryptocurrencies to be traded as less time and energy is involved in adapting to the platform
Fees
- Compare the fees for deposits, withdrawal and making specific trades like futures and options. Most platforms use maker-taker models. Makers add liquidity to and takers remove liquidity from the order book. Maker fees are lower than taker fees.
- Many platforms provide fees based on 30-day trading volume. There are deposit and withdrawal fees other than trading fees.
- Other miscellaneous fees to be considered are inactivity fees, account maintenance charges, premium features subscription fees.
Available cryptocurrencies
- You have to check if the platform lists the cryptocurrencies you want to trade.
- Please observe the nature of cryptocurrencies listed in the platform like for instance some are known for listing emerging altcoins.
- Make sure the platform has sufficient liquidity in the pairs you plan to trade.
Regulation
- The cryptocurrency regulations vary by country to country. Try to use a platform that complies with Indian rules and regulations.
- Tax is applicable on profit earned through investing in cryptocurrencies. Try to prefer platforms that provide transaction history and tax reporting tools for ease and convenience.
Platform Reliability and Performance
- Platform reliability is very crucial during the period of volatility.
- You have to read the user reviews about the system performance during market stress.
- You have to ensure that there will be no outages during critical trading periods and it offers advanced order routing.
Advanced features and trading
- You have to keenly understand the margin requirements, liquidation policies and risk management tools.
- Look for features like account managers, custom API solutions, and institutional-grade security measures.
What are the various platforms to invest in cryptocurrency in India?
1. Binance
- Security: offers two-factor authentication, SSL encryption, multi-singature wallets
- User Interface: user friendly interface, customisable and can set up their trading screens, good for both novice and experienced traders
- Fees: their trading fees are only 0.1%. It is lower than many platforms, benefiting many traders
- Available cryptocurrencies: It supports more than 600+ cryptocurrencies.
- Advanced features and trading: offers margin, futures and option trading.
- Liquidity: how easily an asset can be bought or sold without affecting its price significantly. Binance has high liquidity because of which traders can execute their trading strategies and achieve their investment goals.
- Others: Amazing mobile app and customer support.
2. Mudrex
- Security: It provides 2 factor authentication and biometric authentication
- User Interface: It is good especially for both beginners and professionals
- Fees: Free transfer and no charge on deposits.
- Available cryptocurrencies: it has over 650+ cryptocurrencies
- Advanced features and trading: offers spot and future trading along with coin sets
- Liquidity: Liquidity is decent but is not as big as its competitors. There are some issues with withdrawal and customer support
- Others: Allows investments as low as Rs 100. Furthermore, you can earn rewards by staking 40+ coins with no lock-in period. It also provides tax reporting and insights for each coin.
3. CoinDCX
- Security: It is good. But recently, there has been a breach in CoinDCX. There has been no impact on the customers as all were stored in cold wallets.
- User Interface: It is good especially for both beginners and professionals.
- Fees: Zero fees for INR deposits and withdrawals.
- Available cryptocurrencies: it currently supports over 500+ cryptocurrencies
- Advanced features and trading: offers spot, margin, and futures trading
- Liquidity: Liquidity is good, but there are some issues similar to Mudrex.
- Others: allows 24×7 customer support and automated tax reports.
Written by Parvati Anilkumar
