When it comes to effective cryptocurrency trading and investment, on-ramps are important, even more so than in traditional exchanges, trading stocks like Facebook (FB), Google (GOOGL) or Tesla (TSLA), starting to trade crypto assets might be a hurdle when it comes to on-ramp on an exchange for the average Joe. Having good usable crypto on-ramps allows a wider diversity of investors to get on board, and helps new people to tackle the learning curve that comes with any of these kinds of assets.
But the off-ramps are important, too. What you do with your cryptocurrency assets matters, and the ultimate goal, for most (if not all) traders, is to profit. That may be short-term or much longer-term, but in the end, exchanges that help with getting profit back out of investments are also head and shoulders above the crowd.
Choosing An Exchange For Crypto On-Ramps
When it comes to the best exchanges offering on-ramps for cryptocurrency traders, diversity of assets is a big strength.
You want to have traditional pairs like Bitcoin and Ethereum to the U.S. dollar, and vital interaction between fiat and cryptocurrencies in a way that makes sense to both traders and regulators.
In fact, another big part of offering the best on-ramps is creating a carefully regulated environment for cryptocurrency trading.
The debacles on display at exchanges like BitMex and OKEx show beginning traders, seasoned traders and everyone else how dicey and risky it is to do business without the right kinds of licensing and regulation. The best on-ramp exchanges will be clear-cut in offering traders regulatory peace of mind, and showing exactly how they attain regulatory compliance.
Another major feather in an exchange’s cap when it comes to crypto on-ramps is ease-of-use. The user experience must not be neglected in creating vibrant crypto exchanges. It’s important to understand that many traders will come from diverse backgrounds, and will not be deeply schooled in the original vision of Satoshi or the precise dynamics of a hard fork. They will be looking to be ushered into the cryptocurrency world with clear and transparent explanations of everything that’s involved, not from the perspective of an insider, but for the layperson, as it were.
Picking An Exchange for Its Off-Ramps
In terms of handling and ultimately closing out crypto positions, some of the best exchanges for off-ramps provide low fees. In the crypto world, the trading commission is largely unnecessary because of the verification networks on which these blockchain assets trade. So if an exchange is collecting big commissions, that’s a tip-off that there may be some markup going on.
Here’s another big value in offering investors off-ramps – the clearer and more transparent exchanges are, the more they help with cost basis assistance.
One of the biggest and scariest issues for any new beginning crypto trader is tax questions. In fact, even some established U.S. tax preparers are still leery of getting into the return of a client who has cryptocurrency holdings, or has had them in the past. Then we’ve seen the news that the IRS as the federal tax collector has farmed out all cryptocurrency-related filings to a private company. That does not inspire trust. Meanwhile, in countries like India, even all-out bans are being considered!
What does inspire trust is when exchanges clearly go through the nuts and bolts of tax tracking and cost basis accounting with investors. If you know how to report your cryptocurrency gains, you’re much more likely to dive in with confidence and a clear head.
In addition, exchanges that want to offer the best off-ramps can provide investors with key advice about cold wallet storage. One of the big rules of thumb in the cryptocurrency world is that it’s a good idea to take dormant trades from a live exchange environment to a cold wallet, so that they can’t be tampered with. For perspective, traders who had taken their OKEx holdings out into a cold wallet before October wouldn’t be stuck with their hands in the cookie jar!
Which Exchange Offers the Best Balance Between On-Ramps and Off-ramps When it Comes To Crypto?
It’s hard to do better than getting involved on the Currency.com platform. For on-ramps, this exchange offers over 1500 products, including tokenized bonds. It offers no hidden fees, and low-fee trading. It also offers leveraging of up to 500 times for margin trading.
The charts and technical analysis on the platform are extensive and help investors to understand their actions every step of the way. Profit-taking orders are clearly accommodated, and 24/7 support means that traders can get answers to their questions when they need them. Available demos provide more of a tutorial for those who have questions about how this works.
Meanwhile, live streaming prices and real-time price alerts help the trader in the moment – to get into a crypto position, to manage that position, and then to exit the position when it’s made profit.
So take a look – because using the best platforms really makes sense when it comes to your cryptocurrency portfolio. That’s true no matter what stage you’re at, whether you are just buying a little bit out of curiosity, or trading big while fleeing an embattled equity market or, say, betting on BTC or other coins because the Fed is buying up U.S. Treasury bonds. It’s all part of the ecosystem, and knowing where to trade, as well as how to trade, can mean everything.
Disclosure: No positions. This Op-Ed is written by Reuben Jackson. Insider Monkey News Department isn’t involved in the production of this article.