Crypto exchanges are always competing to get users onboard and keep them around for the long term. That’s why you’ll see many offers and incentives from the top platforms.
The problem is that knowing which deals are the best, and understanding how to benefit from them as a crypto trader or investor, is difficult if you’re not up to speed.
To give you a clearer understanding of how to squeeze as much value from crypto exchanges as possible, here’s a quick overview of the ins and outs of promos.
Introduction to Crypto Exchanges
A cryptocurrency exchange essentially enables buying, selling, and trading digital assets such as Bitcoin or Ethereum. It’s important to understand that crypto exchanges are not the same as brokers, as they typically offer more options for long-term investments or for day traders who want quick profits from market fluctuations.
Additionally, most crypto exchanges have access to different kinds of order types, like limit orders and stop loss orders, allowing users greater control over their trades.
Crypto exchanges can be extremely useful in facilitating transactions between buyers and sellers while providing transparency regarding pricing information, allowing users to make informed decisions when trading.
Some exchanges also offer additional features, such as margin trading and futures contracts, which can provide even more opportunities for users to profit from their trades as part of a wider investment strategy. And to get you to sign up and start trading, juicy offers are provided.
Exploring the Different Types of Deals and Offers Available
In terms of new customer incentives or loyalty rewards, many exchanges offer promotional codes which allow users to get discounted fees when making trades.
This is especially beneficial for those who trade frequently, as it helps reduce costs. For example, with a Phemex invitation code, you get 10% off trading fees, which will quickly add up.
Moreover, some crypto exchanges also provide usage-linked bonuses, such as cashback rewards, when certain conditions are met, encouraging users to stick with them.
Some platforms even have periodic sales, where traders can purchase cryptocurrencies at reduced prices compared to the current market value of an asset, allowing them access to potentially lucrative investments at a cut price.
Selecting a Suitable Crypto Incentive Strategy
Choosing an exchange based on its incentives is all about knowing what you want from your crypto experience. If you’re looking for a long-term investment with a hands-off approach, picking an exchange with a good set of freebies up-front is sensible, as you can embrace the set-and-forget strategy. If you’d rather make lots of trades every day, then promos that lower transaction fees should be a priority.
It’s also worth noting that several mainstream exchanges will reward you with tokens for staking your crypto assets in a certain pool or simply participating in learning experiences, usually associated with a newly launched project. So there are passive and active ways to maximize your involvement with a particular exchange or popular alt token.
The Bottom Line
The main takeaway is that crypto exchange incentives may be there to ensure your loyalty, but that doesn’t mean you have to stick to using just one platform. Research the current crop of incentives, consider your own investment goals, and play the field to maximize your returns while minimizing the amount of your cash that you’ve got on the line.