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What is a Crypto Trading Platform?
One fundamental situation beginner traders may face when picking a crypto solution is grasping what a trading platform is and which is better.
With the rapid growth and evolution of this side of the cryptocurrency industry, even experienced traders could not be able to answer such a question.
After all, crypto exchanges have played a central role in developing trading platforms, but today, there are countless trading alternatives at our fingertips. So, what is a crypto trading platform? This article will serve as a guide for readers to answer that question.
Crypto Trading Platforms: A Basic Overview
From an introductory standpoint, we may say that a trading platform is an environment where individuals motivated by investing or speculative desires can execute orders to buy and sell assets in a market.
This environment delivers a variety of options tailored for entry and exit orders, powered by basic and advanced modalities. Additionally, in a trading platform, users can find different tools and data to analyze the assets they look to operate.
Integrating tools like volume indicators or momentum oscillators, among other data like last price or high and lows, is characteristic of platforms streamlined exclusively for trading.
When talking specifically about crypto, the former descriptions do not differ much. However, unlike conventional platforms like MT5, which is very popular among traditional securities traders, crypto exchanges have gained a singular role in building their proper trading platforms and features that aim to fulfill the specific needs of their exchange offerings and userbase demands.
Although crypto trading platforms are part of most exchanges, that does not necessarily have to be the case in general terms. Nowadays, with the popularization of digital finances, the concept of a crypto trading platform has taken various pathways.
The Foundation and Rise of Crypto Trading
One way to understand what a crypto trading platform represents today or which are the different forms it may take is by reviewing the historical context of the cryptocurrency sector from Bitcoin to the present.
At the time of Bitcoin's launch in January 2009, there were no easy methods to acquire the cryptocurrency units (BTC). The first approximation to exchanges started with the Bitcoin Market, a no-frills website based on peer-to-peer transactions, where one person would sell and the other would buy using Paypal.
Mt. Gox established the ground for what we know as an exchange now. The first data and parameters regarding each executed transaction were born. Upon that moment, buyers and sellers could then coordinate by leaning on information such as the following:
- The last price traded.
- The day highs and lows.
- Total trading volume.
- Bids and asks position prices.
That data settled the base for one of the most essential elements of trading: speculation. Thanks to Mt. Gox, for the first time, the principal cryptocurrency had buyers and sellers forecasting and making decisions according to how the masses were trading, giving birth to an actual Bitcoin trading market and not just a peer-to-peer platform.
Factors Driving The Growth of Crypto Trading Platforms
The moment Bitcoin became a tradable digital asset with a functional market was crucial for the rise and development of more sophisticated platforms as more aspiring traders and crypto enthusiasts began to follow the new market hype.
The market expanded rapidly along with the early adoption of BTC, while traders and investors demanded better features. Up to this point, opportunities proliferated across several needs and forms.
Among the factors driving the evolution of crypto trading, two of them stand out as critical pivotal points:
- The climb and competition of new crypto exchanges around the world.
- The development of online trading platforms streamlined for cryptocurrency.
Most of the early exchanges integrated trading features as the cryptocurrency sector became more competitive, and the need for trading BTC with better solutions appeared. From 2013 onwards, the Bitcoin market turned into the crypto market, already encompassing around ten more digital assets, including Litecoin and XRP.
Types of Crypto Trading
Since then until now, this growth incentivized an era of exponential development in mixed and specialized types of crypto trading platforms, some with general features and others with specific approaches like:
- Quantitative and algorithmic trading.
- Copy trading.
- Bot creation and automation.
- Spot trading.
- Futures trading.
- Options trading.
What to Consider About Crypto Trading Platforms
Understanding the risks of cryptocurrency trading is a paramount step when considering a crypto platform as an option to start trading. The cryptocurrency market can be highly speculative, volatile, and a rude environment to survive when operators lack the proper features.
Some exchanges deliver basic interfaces along with advanced models in the same platform. Others split their platforms. Ultimately, the user decides which to use according to their goal, experience, and needs.
Specialized crypto platforms like Altrady allow using basic features like stop-loss and take-profits with advanced functions to customize the trading experience, for instance, by automating executions.
Another element to consider is the execution speed and overall performance. Moreover, the integration capabilities with third-party alternatives like Tradingview are not a minor but an advantage.
Last but not least, as a user, you would be interested in a satisfactory customer support system and being able to check a feedback history from past and current users already using a crypto trading platform.
The Bottom Line: What is a Crypto Trading Platform Today?
The past has been exciting, and the future seems promising for the cryptocurrency trading platforms industry. As technologies keep upgrading, the alternatives seem to be numerous.
As stated above, nowadays, the industry covers extensive possibilities, from quantitative analysis to algorithmic trading, automation, bots, copy trading, etc. All of those aim to make a profit from the price fluctuations seen in the market.
We can now state that a crypto trading platform is an investment interface that enables individuals to trade digital assets beneath a scheme of available tools and data optimized to manage risks and harness a chance of making profits.
Conclusion
A crypto trading platform is a specialized environment that goes beyond the financial products found in exchanges. A trading platform provides users with specific tools to implement diverse trading procedures.
Altrady is a crypto trading platform with multi-exchange integration features where beginners and professional investors manage assets across multiple accounts simultaneously, seizing algorithmic, automation, and bot functionalities. Sign up for a free trial account today.
