Best Trading Platforms in Spain

Cryptocurrencies are all the rage these days, although. As with all markets, not all cryptocurrencies are the same and each poses different risks to traders. As the prices of some are more volatile than others. Traders with little experience or expertise may be tempted to take greater risks than they can afford and also see other trading platform in spain.

Cryptocurrencies are traded with the aid of exchanges. These are computer-based trading plataformas that list and trade an entire range of cryptocurrency instruments. An exchange includes a platform that the trader uses to make an order, but also links to other platforms that may either act as a market maker for the exchange, or offer liquidity.

Exchanges carry a few things in common. All of them have professional customer service and platforms that are free of malware, viruses and other threats. They offer the facilities for controlling multiple accounts, and are protected against account and trading freeze. Some even have apps so that traders can track prices on the go.

Trading platforms are where many traders take their first steps into cryptocurrencies. Although they can be a great learning tool, they are not for beginners. The general public, and many professionals, do not have the necessary experience or training to make investments of this type, and are not aware of the risks.

As well as trading, exchanges are used to deliver cryptocurrencies to traders. These are usually mailed to them, but may also be physically delivered. For this, you’ll need a gateway account with a recognised trading exchange.

Should you choose to use cryptocurrency exchanges and a gateway account, here are the risks you should be aware of.

These risks occur regardless of whether a trader is on a broker-assisted or directly linked trading platform.

The biggest problem with exchanges is that they hold the bulk of your cryptocurrency. Most of the time, the only way to transfer cryptocurrency. From one exchange to another is to transfer it to the exchange. That has the cryptocurrency you want to buy. The exchange, in turn, will usually have a contract with a bank. That it trusts to accept the payment for your cryptocurrency. This bank will hold your funds in a ‘hot wallet’. Until you send another payment to buy it from the exchange.

The exchange must be in a country with the means to transfer cryptocurrency into its own country currency. Exchanges usually have offices in a country that they know. However, they may still deal in currencies that are difficult to exchange, such as the Hong Kong dollar. It is important to check that you are able to convert your local currency to the exchange currency that you will use to pay.

Although there is no legal protection against losing your money to a scam, it is important to know that the exchange will normally contact you to verify your identity and limit your losses. However, even a reputable firm is not immune to fraud.

Another risk associated with trading cryptocurrencies is, if you lose money due to a mistake made by an exchange, you may not be able to get your money back. Exchange rate fluctuations may also result in more money being paid out to you than you can handle.

Trading currencies requires discipline. You must always keep a clear head, analyse your strategy, and not be influenced by any of your emotional feelings about the currency. As well as discipline, you need time and patience.

Some trading platforms include clearing houses. These are not only a financial facility, but also provide a place for exchanging transactions between investors. With a clearing house, funds that you send to the exchange can be instantly transferred to an account for investment in another cryptocurrency. You can use a platform that already has a clearing house to make an order to purchase cryptocurrency, and then trade for it on an exchange that does not have a clearing house like icmarkets.

Clearing houses are safe for investors because they offer a place for exchange between different currencies. This means that if one of the traders loses the entire contents of their account, their other trading partner will still be able to continue trading. However, for this to work, a platform must also be approved by a central exchange.

The best exchange is not always the cheapest one. Some of the main advantages of a clear-cut exchange, for example, include convenience, the availability of instant trading, and you can buy a large amount at once.

Find out more in our guide to cryptocurrency trading platforms.

There are three main types of exchange.

Independent or “peer-to-peer”: it is operated by individuals rather than a company or business.

Cryptocurrency or “token” exchanges: operated by a company or business that uses the same technology as traditional financial services, such as credit card payments, and can be paid using cryptocurrency.

Capital- or “middle” exchanges: operated by companies with the means to exchange currencies with customers in another country. It may also involve large amounts of money.

Individual or “fiat” exchanges: operated by a company or business that uses the exchange technology and an online account to handle the transfer of currency from one currency to another.

These differences will affect your choice of exchange, although, in general, the primary question to consider is the type of cryptocurrency that you wish to invest in.

If you want to find an exchange where you can buy cryptocurrency for a low cost or zero commission, check the fees that are charged. If you do not want to buy cryptocurrency, you will also need to calculate the cost of transfers.

Fees vary widely. Most exchanges charge a basic or “maintenance” fee of around 0.1% – 0.15% of the transfer value. These fees are set by the exchange, and can change depending on your contract and account status.

However, exchange rates fluctuate daily, so exchanges can charge fees even when the exchange rate is falling, and make a profit by selling cryptocurrencies that are cheaper.

If you are prepared to pay a higher exchange rate, the commission on top of this will include other service fees, including a “profit margin”, which can take account of various costs such as the cost of accepting deposits. The commission can also include “settlement fees”, which are charged by the platform and are different from other fees.

Before you send money to a third party, you will be asked to confirm that you are aware of all these fees, and what you will be paying. However, some companies may impose additional charges, such as foreign transaction fees.

You can see the fees that an exchange charges for a specific currency in this table.

Do your research before you transfer money to make sure you are paying the best exchange rate for the currency you want to buy.

Most platforms offer a free trading service but require that you pay a commission for each transaction you make. These are usually set at around 1% – 5% of the total transaction value.

Services fees are payable to the platform, not to the seller. To avoid being charged, you need to be sure that you are doing the business they are buying from, and to avoid buying unwanted products, for example, duplicate products that have not been accepted by the platform.

Find out more: How to avoid being scammed on an exchange

If you want to sell any of the currency you have bought, you will be asked to pay a brokerage fee. Most services charge between 1% and 3% of the sale value, but rates are sometimes negotiated.

Some platforms offer access to various exchange rates and other features. The most obvious benefit is that your account is free from paying commission on the first sale of a cryptocurrency.