Crypto trading isn’t something you dive into. It would be like taking a car out to the highway without any prior knowledge of driving. Nothing good can come out of the scenario I just painted and that’s why a good amount of skills have to be learned to avoid any damage, the same goes for trading cryptocurrency. It is always advisable to use a demo account till you’re sure you’ve got the hang of it. Using a demo account offers you the opportunity to master your skills and figure out what works for you as a trader before you invest some real money.

Let’s take a look at the best platforms for starting your crypto trading journey, beginner-friendly trading methods, and how to manage risks as a trader.

A crypto exchange is a platform where you can interchange a digital currency for another and make a profit from the price difference. Before you pick a trading platform a number of factors have to be considered so you can ensure your funds are safe in the long run and your overall experience is optimized. Factors to be considered include;

The user interface and accessibility (UI/UX) play a huge role in how you trade. Although this factor is usually overlooked, a change in where buttons are placed can affect the time you spend performing a task. When it comes to trading crypto, timing is an important factor. You don’t want to go for an exchange you find hard to navigate.

A lot of trading platforms exist to cater to the skills and needs of a trader. There’s no point picking an exchange with high functionality when you’re a beginner. You can start with something simple and upgrade later as you learn more skills.

How much you’re willing to spend on exchange depends on what you need when you’re trading. If you’re looking for functionality that comes at a price then you can invest in it. A lot of free trading platforms exist so if you’re looking to cut costs, you can opt-in for a free exchange instead.

You should try out the Demo version of the exchange to ensure it matches your needs and that it doesn’t crash, especially when you use it across different devices like mobile, desktop, or tablet. Some exchange apps work better on IOS than Android and this should also be considered. 

Pick a trading platform that offers around-the-clock support. Sometimes you might get stuck or need something fixed. The best exchanges offer fast responses to customer complaints and inquiries.

Putting all these factors mentioned into consideration a few exchanges make the list of our top 3 trading platforms; we’ll talk about the best methods to trade on each exchange and their associated risks.

Finance is a global exchange, being accessible in most countries worldwide. Recently launched in 2017 yet, is fast becoming one of the world’s leading trading platforms. Its low trading fees give it an edge over the other exchanges and that’s why it comes in at number one. It Supports over 200 coins and tokens and offers a wide range of financial services (Defi). This exchange is suitable for both beginners and seasoned traders.

Coinbase is another leading exchange, especially in the US. If you’ve been trading a while, coinbase pro is a great option especially if you’re looking for more advanced trading options. However, coinbase has one of the highest fees when it comes to trading crypto and their customer support service, let’s just say, needs a little upgrade.

Coming in at number 3 with one of the best user interfaces is Uniswap, a decentralized market exchange. It is an open-source dApp built on the ethereum blockchain that allows you to swap ETH for any ERC 20 token.

You can also connect Uniswap to a meta mask wallet to keep your coins safe.

When it comes to trading crypto, following the crowd can be detrimental. Another very important rule of thumb you should always remember is to never invest what you can’t afford to lose. This list includes a few trading methods that are suitable for all kinds of traders;

Margin trading can be a little risky; it involves trading assets borrowed from a third party. In crypto trading, this third party is usually another trader.

Margin trading helps you leverage your position (increase the profits made from a trade).

You can borrow up to 100× what you originally have but this comes at a price.

• Binance
• Uniswap
• Coinbase

Risks:

1. You can lose more money than you invest.
2. You can be at risk of liquidation

This has to be one of the easiest trading methods out there. All you have to do is to buy a coin of your choice and keep them somewhere safe for a given period. You can hold them for a year or more, then sell them when you feel they’ve increased and a substantial profit has been made.

You can use the HODL trading method on any exchange platform.

Risks:

1. Holding your coins has little to no risk unless you decide to sell them at a time when their values plummeted.

The scalping method involves taking advantage of small increases in price over and over again. “Scalpers” don’t hold their positions for long periods; some scalpers can open and close positions in a matter of seconds. This is done repeatedly during the day to increase the amount of profit. A lot of popular exchanges give you the freedom to use the scalping method.

Risks:

1. Scalping can be very time consuming
2. It requires a level of determination & concentration. 

• Day trading
• Swing trading
• Trend trading
• Index investing

 If you’re not sure which trading method you want to start with, you can test run each method to see what works well for you.