Crypto-asset trading is a fast-growing part of the financial sector and it is the next big thing. Due to the subsequent spread of trading applications, a lot of functionalities have been provided to the large number of investors who are willing to participate in the e-trade.
The subsequent spread of trading applications brought immense functionality to a wider range of investors, i.e. the ability to participate in financial markets with greater execution speed and reduced fees.
Given below are some of the key factors that led to the emergence of the Crypto Asset Management Solution-
Investors are increasingly looking to add a bit of cryptocurrency, such as Bitcoin, to diversify their portfolios and capture some of the potential upsides of this new asset class.
Cryptocurrencies are difficult to grasp for new adopters and many ordinary investors – including how to establish a wallet and transfer tokens securely.
“crypto-asset management solutions are being created to help individuals and firms alike who want to take advantage of crypto without having to worry about the ins and outs of technical procedures involved.”
What exactly is the Crypto Asset Management Platform?
Crypto Asset Management platform is an ecosystem that provides a centralized location for the traders to manage their investments or portfolios. These platforms simplify the process by helping users to unite their diverse holdings and instead of managing multiple accounts and wallets, they can manage all their crypto stuff on a single platform.
Things You Must Consider Before Choosing the Crypto Management Solution
Choosing the right crypto asset management solution is one of the difficult and important tasks. As nowadays there are several platforms available in the market and it becomes really difficult for a beginner trader to pick the correct one, as picking the wrong platform could result in hacks, distractions, and wasted efforts eventually.
Below is the list of a few points which traders should keep in mind while hunting for the crypto asset platform
KYC/AML- Different exchanges have different laws and regulations based on their location, practices, and offerings. Some exchanges have to Know Your Customer (KYC) and Anti-Money Laundering (AML) practices, during the account creation and some may have this feature to withdraw funds.
Security- The next important thing over which the trader has to look is the security of the platform. A secure platform ensures a solid user base and high revenue. Each exchange has its own chosen methods of security.
Generally, the exchange offers two-factor authentication (2FA). If not, then the exchange may not be acceptable by security today’s standards. Below listed are some of the must-have security mechanisms for any crypto platform.
HTTP parameter pollution protection
DoS (Anti-Denial of Service)
DDoS (Anti-Distributed Denial of Service)
Fiat Exchange- Some of the traders require an exchange that is compatible with the fiat currencies allowing them to transfer national currencies (USD, CAD, etc.) into the crypto world for trading use, and out of the crypto world to cash out profits. While some of the exchanges do not have this option.
Supported Cryptocurrencies- There are a large number of cryptocurrencies available in the market for the users to trade-in. Once users are done with the selection of the cryptocurrency for trade they can now then start hunting for or make sure the platform or the exchange supports them.
Data Volume- Trading platforms vary based on the number of participants using them at any given time, as well as the amount of each asset being traded. This aspect can be important as it affects how easily users can enter or exit positions.
Fees- Most exchanges charge a small fee for each trade while some may not have this feature. Different platforms have different fees incurred on the trades happening there along with the percentage of each trade.
Liquidity– Liquidity also plays a vital role when a user is looking for an asset platform. if a system doesn’t have sufficient liquidity then the asset value and the execution or the transaction may get compromised. The users will have to make sure while getting the solution that the exchange offers sufficient liquidity and trading volume that helps the transactions to be fast and easy.
Before getting the platform, users must do due diligence to make sure that the platform would suffice their requirements or not. The points mentioned above are just for consideration, although the requirement will vary from person to person based on their goals, values, and activities.
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