Very few people would have predicted the success of cryptocurrencies when Bitcoin debuted in 2009. Since then, it has become a hot topic for both traders and regulators. Traders can trade cryptocurrencies for profit, just like any other commodity.
There are many cryptocurrency exchanges like Swyftx Pty Ltd that facilitate trading. In this article, you’ll learn about the features you can expect in an online cryptocurrency exchange.
What Is A Cryptocurrency Exchange?
A cryptocurrency exchange is a marketplace where the cryptocurrencies like Bitcoin, Ethereum, Litecoin, and others are bought and sold. It’s very much like a stock exchange. For example, at NYSE, traders buy and sell companies’ stocks to make a profit.
But unlike a stock exchange, cryptocurrency exchanges do not have a physical location. They are operational only on the internet. In the subsequent sections, there are some of the features you can use to trade cryptocurrencies.
A dashboard is where you get all the details you’d need about your account. Whenever you log in to your account, you’ll land on this dashboard by default.
This is not where you place trades but where you get a summary of your trades. So it will show the account balance, the active trades, the past trades, and a portfolio. But you’ll be able to customize your dashboard and include metrics that are more relevant to you. So you may want to include Ripple’s current value or the latest news in your dashboard. But it’s also important to not clutter your dashboard with excess information.
Real-time charts are the meat-and-potatoes of a trading platform. They allow you to make trading decisions in real-time without you having to hop back and forth between multiple platforms.
In the charts, you can see whether the price is in an upward or a downward trend. With technical analysis, you’d be able to find both short-term and long-term trading opportunities.
You can open the charts for any pair like NCH/BTC, ADX/BTC, ALGO/BTC, and tens of thousands of others.
Real-Time Future Charts
Just like cryptocurrency pair charts, you’ll get futures charts on many online cryptocurrency exchanges. Trading Bitcoin futures is different from trading regular pairs. While trading futures, you do not have to hold the underlying Bitcoin or Ethereum. You have to speculate the price change and take the profit accordingly.
Not all exchanges will have future charts. And if you’re not looking to trade cryptocurrency futures, you shouldn’t be concerned about it either way.
High Number of Altcoins
Another advantageous feature of trading at a cryptocurrency exchange is exposure to a high number of altcoins. By definition, altcoins are any cryptocurrency other than Bitcoin. So, Litecoin, Ethereum, Bitcoin Cash would qualify as Altcoins.
As per estimates, more than 5,000 Altcoins are operating at the moment. Consequently, there are 20,000 different markets you can choose from. Some will be more volatile than others. So if planned and executed properly, you’ll have multiple opportunities to make a profit.
Peer-to-Peer Money Transfer
Most exchanges will have peer-to-peer money transfer options in place. With these, you can easily fund your account and take your profits. Once you’ve profited from a trade, you can withdraw cryptocurrency investment to your preferred wallet.
Some investment platforms do not have the option of withdrawing Bitcoins as per your wish. In the Bitcoin community, traders refer to this practice as “not your keys, not your coins.” This essentially means that you do not own the coins if you do not hold keys to your Bitcoin wallet.
When you’re just getting started with crypto trading, you shouldn’t trade directly with your money or Bitcoins. Instead, it would help if you traded with a demo account to get familiar with the exchange and the trading process.
So you’ll find a demo account at many cryptocurrency exchanges. Sign up for a demo account that doesn’t require any deposits or credit card information. You can trade risk-free. Once you get familiar, you can switch to a real account and start trading with real cryptocurrencies.
Live Chat and Support
When you’re trading at an online cryptocurrency exchange, things may go awry at times. In such cases, you can seek the help of a customer support rep via live chat. At most crypto exchanges, you’ll find this feature to seek immediate support for your concern. Other exchanges will have an email or telephonic support facility in place.
Online cryptocurrency exchanges like Swyftx Pty Ltd are still evolving, and you’ll find many more useful features in the future. But the above ones are the bare minimum which any exchange should have by default.