What To Look For In The Best Crypto Trading Platform

Partnering with a crypto trading platform is important for anyone looking to buy or sell crypto. These platforms help people participate in a wide range of crypto activities while keeping their assets secure. But how can you tell if the platform you choose is one of the best?

In this article, we’ll discuss what to look for when considering crypto platforms.

What Are Crypto Trading Platforms?

Crypto trading platforms go by a few different names, including “crypto exchange” and “crypto bank.” These platforms allow users to exchange one digital asset for another based on the asset’s market value.

Similar to the way a stockbroker acts as a middleman between investors and the stock market, crypto trading platforms work to provide users with the necessary tools for selling and trading crypto through a streamlined process.

Not all crypto trading platforms work the same. Some are designed only to trade, exactly as the name implies. Other platforms offer more functionality through additional features.

Types Of Crypto Trading Platforms

crypto trading platform pictogram

The type of crypto trading platform that works best for you will depend on your specific needs, such as security concerns and financial goals, as well as how much personal risk you’re willing to accept.

Centralized Exchange

By far the most common way for you to manage your crypto is through a centralized platform such as Vauld. These platforms essentially act as a third party for crypto activity, providing safe and seamless transactions in a digital space.

The features that many centralized platforms offer are comparable to the options you might find through a traditional fiat bank. Along with buying, selling, and trading, storing assets with an exchange lets you earn interest on your funds or even borrow against them.

Decentralized Exchange (DEX)

Rather than relying on a third party for transactions, a decentralized exchange (DEX) allows you to coordinate trades directly from your wallet through the use of smart contracts. This platform appeals to the crypto community interested in the decentralization aspect of DeFi.

Since the platform does not store a user’s crypto, the possibility of cyberattacks decreases. However, the potential for user error and a near-lack of insurance increases at the same time. A DEX is also slower and less intuitive compared to a centralized exchange.

Peer-to-Peer (P2P)

Peer-to-peer (P2P) platforms operate much like Craigslist, allowing users to post desired trades and other information regarding offers.

The benefit of providing users with more control over their assets comes with the heightened risk of compromised security, scams, and no insurance.

Finding The Best Crypto Trading Platform

Different crypto trading platforms may offer different perks, but some features should not be negotiable. Knowing these features (below) will help you identify a quality trading platform over an untrustworthy one.

Security Features

symbolic computer language portraying effective security in a crypto trading platform

One of the key differences between the types of platforms mentioned above is various levels of security. While not every DEX or P2P option is going to be void of security features, not every centralized platform will offer multiple safety options and insurance, either.

Understanding the risks inherent with certain types of platforms and the risks you are willing to take as a user will help answer the question of which platform is best. Be sure to research features that different platforms have available and determine the necessary ones for you.

Here at Vauld, our customer-first approach has led to a long list of security features that continues to grow. These include:

  • Biometric and pin-based authentication
  • Multi-factor authentication
  • Safelisting against third-party attacks
  • Up to $100M in asset insurance
  • Video verification
  • User notifications

Put simply, finding a crypto trading platform that implements security in a variety of ways means keeping assets protected against cyberattacks and bad actors. Partnering with an exchange operating without this in mind puts your assets at risk of being compromised.

Crypto Options And Functionality

symbolic crypto coins on top of a tablet with crypto trading platform open

The ability to trade crypto may come with notable limitations, depending on the chosen platform. Some exchanges, for example, only allow trade between a select few popular assets, such as Bitcoin and Ethereum, or have minimum trading venues.

If you’re looking to diversify your portfolio as a way to manage the risks of a volatile crypto market, choose a platform with a good selection of available crypto to buy, sell, and trade. This will increase the potential of not only saving money but also building wealth.

At Vauld, we have an extensive list of tokens to choose from along with each token’s respective rate. Lenders have options between a simple savings rate that earns interest as soon as funds are deposited or a fixed deposit rate that earns 2-3% more.

We are also proud to offer our Automatic Investment Plans (AIPs) for users interested in expanding their investment power without having to spend so much time checking the market.

Simply choose a pre-made basket of crypto assets or customize your own, then set them to buy at regular intervals. Features like AIPs, auto-matching, cross-platform and margin trading, and more are intuitive options for anyone who wants to build wealth automatically.

Competitive Rates

Since rates are different depending on the chosen token, comparing interest rates across platforms will help you understand which exchanges are offering the best options.

These rates will fluctuate based on the market, but price comparison platforms are available as a quick and easy way to explore competitive rates, whether for a savings account, fixed deposit, or even for borrowing against crypto.

Insurance Considerations

wallet with cash and crypto coins

The idea that all of your valuable assets may suddenly disappear due to no fault of your own is a frightening yet conceivable thought. Before insurance, bank failures caused an incalculable amount of money to disappear.

Today, many fear the same loss through crypto endeavors. Although crypto trading platforms are not FDIC-insured, exchanges offer options to keep your assets safe from cyberattacks.

Exchanges that put their customers first offer this protection in many ways. The most critical aspect is that the platform you partner with offers insurance to begin with and that it meets your standards for the protection of your funds.

At Vauld, we ensure your assets are safe by moving funds from your wallet to a centralized lending pool that’s insured for $100 million in BitGo.

BitGo is a leading digital asset trust and security company. BitGo helps enable you to navigate the complexity of decentralized finance without needing to worry about the associated risks.


crypto coins next to a calculator

A significant element of building wealth is being able to account for anything that might take away from potential profits. Unfortunately, hidden fees taken by some exchanges can quickly eat away at earnings.

Since federal and state consumer protection laws aim to protect people from being tricked by truly hidden fees, you can determine whether a crypto trading platform has additional fees through a bit of research or asking customer support about the associated fees.

Common fees come as the result of deposits and withdrawals. At Vauld, our fees are set up with the customer in mind so your earnings remain yours. This means absolutely no hidden fees, no deposit fees, no AIP investment fees, and only required network fees for withdrawals.

For more questions about fees, review our FAQ page or reach out to customer support by using the Chat feature on our homepage.

Trust A Platform Built For You

crypto trading platform pictogram

Choosing the best crypto trading platform out of countless exchanges is a daunting task, especially when your crypto needs might evolve down the road.

While risk tolerance and investment goals are often discussed in the traditional banking and investment model, they’re equally important when moving to DeFi.

When choosing which platform to go with, consider what your overall goals are. As you invest in new things or hold on to your crypto for long periods of time, look for the ability to get better rates as things change, more security features, or simply more options from your exchange.

Although many platforms offer their own unique features, finding an option that has all of the essentials and a wide range of additional features makes the future’s uncertainty a lot easier to manage.

At Vauld, we don’t limit you to the bare minimum. We also simplify the complexity of crypto through automated options and a seamless digital experience.

When you sign up with Vauld, you’re doing more than partnering with one of the best exchanges. You’re expanding your investment power for your financial future.

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