Choosing Your Crypto Toolkit: A Checklist to Choose Your Tools of the Trade

Choosing Your Crypto Toolkit: A Checklist to Choose Your Tools of the Trade

Before starting your crypto trading journey, there are a few tools and services, you need to subscribe to facilitate you along the way. Here are a few things, you should check about the service provider, before handing them over any money.

Choosing Your Crypto Toolkit: A Checklist to Choose Your Tools of the Trade

  1. Company: Before choosing a service always research the company providing that service. How long it has been around, what it is famous for, what its reputation is among the general public. If a company has been marred in scams, you definitely don’t want to trust them with your funds. For example you can choose Binance as your exchange and MyCryptoParadise for best crypto signals that will help you trade on that exchange.
  2. Technology: Always read reviews of the services you want to take. Like many times companies launch half-cooked products in the market which are inconvenient to use and are prone to security threats. Reading reviews always gives you an upper hand by helping you in making the right choice.
  3. Cryptocurrency Conversion: Currency conversion affects your trading options. Many exchanges even give options to their users to swap their cryptocurrency with the ones exchanges have. This gives their user greater cryptocurrency conversion, and easier trading in diverse crypto portfolios.
  4. Backup Support: Suppose the machine you use to log in to your crypto trading platform gets corrupted, then what? The easier it is for you to recover your authentication, using some identity documents or passcode, the safer your money is. It is always a correct choice to look for a reliable service provider.
  5. Multiple Cryptocurrencies: Single cryptocurrency means less liquidity and more vulnerability to market forces due to lower diversification and we want neither. Platforms supporting multiple currencies have found greater acceptance among the traders than the ones dealing only in a single coin. This is an important tip to invest in cryptocurrencies.
  6. Multi-Platform support: If you are choosing a service like a crypto wallet, it is obvious you want that wallet to be supported across various platforms that you may wish to use later. Popular wallet services often support a large no. of platforms.
  7. Customer Service: We are well aware of volatility of the crypto market and the speed at which currencies lose and gain value. There are unexpected situations which lead to market bumps. In such a trading environment, a vigilant customer service is the need of the hour. This feature can’t be traded even for free gold.
  8. Shared Account: Many times, people pool resources to buy cryptocurrencies. Business organizations dealing in cryptocurrencies, often have shared accounts with multiple people having to come together to authenticate a transaction. So, if you are planning to trade as a company or looking to pool your resources, you should check if shared accounts are supported by your wallet or other crypto services.
  9. Liquidity Risk: The crypto service company must have enough liquidity to facilitate trades even under great transactions volume stress. It is of two types. First is the cash-flow risk. It is the company’s ability to honor its commitments and liabilities. A ratio of a company’s assets and liabilities is a good indicator of such a risk. Second type is Market liquidity risk where the asset you hold isn’t liquid enough, hence not easy to dispose of.
  10. Evolving: Since the inception, blockchain technology has improved and evolved. There have been new features introduced in the newer technologies. An apt example of this would be Litecoin having a more sophisticated tech running behind the scenes making its transactions faster than bitcoin. The tools you are using must have a history of constant improvements and evolution.
  11. QR Code Scanner: Many people prefer having the functionality of crypto trading at their fingertips. Thus, mobile wallets have grown popular among the crypto traders. Code Scanners always come in handy in such applications and thus your wallet ought to have such facilities.