Seven Things To Look For In a Crypto Exchange Platform
Cryptocurrency has risen in a meteoric fashion over the last decade. Where once bitcoin stood alone, there are now dozens of different viable cryptocurrencies out there. But it comes down to finding a crypto exchange platform that you can trust.
There are a few traits that potential investors should be aware of before making the leap to an exchange. Here are 7 things in particular that anyone interested in crypto should be considering before making the leap.
Without a doubt, the single most important aspect about choosing an exchange is the current offerings available. Remember that crypto has come a long way from the days of bitcoin and nothing else being offered.
The best platforms can offer hundreds of different cryptocurrencies to choose from, great for amateur investors and those experienced in the crypto world. Generally speaking, those who are newer may want to go with fewer options while the more seasoned investors would like the opportunity to choose from a wider array of crypto offerings.
This can be something to easily lose track of if you aren’t paying close attention. As there becomes more and more competition, and the risk of crypto decreases, there will likely become more standardized fees across the board.
For now, there are a broad array of fees to face. For the most part, you will run into a trading fee as well as a potential extra cost that comes in the form of commission. Still, there are some exchanges that offer commission-free trades when you buy Crypto while other platforms may charge a fee for basics like withdrawals and deposits.
Right there with the number of offerings is security. Finding a safe means in which to invest in crypto is something that everyone hopes to achieve from the jump. Finding a crypto exchange platform in which one can trade confidently is vital for being able to buy and sell crypto effectively.
The larger the platform, the more potential risk that there is. Most platforms take serious precautions to keep both financial and personal information safe as well as protecting holdings from potential theft. Encryption, cold storage (data being kept offline) and two-factor authentication (2FA) are becoming prominent ways of thwarting would-be thieves.
Storage is also another crucial aspect of finding a proper exchange. There are generally two ways of keeping crypto: through an online wallet or on a personal hard drive. It is important to keep in mind that not all exchange platforms come with a wallet to hold your crypto.
It all comes down to the amount of crypto you plan to have. For smaller amounts, keeping a wallet on an exchange is probably fine. But for larger amounts that could be under potential threat, keeping an external cold wallet is the way to go for additional security.
Depending on the exchange that you go with, it can mean the utmost convenience in things like making a deposit, buying, and selling. With the right exchange, you can connect your bank account, connect a debit or credit card, or even do crypto-to-crypto trades depending on the platform.
Just remember to keep in mind that not all platforms are created equally; some will have a more diverse array of deposit, trading, and buying options than others. Find one that offers the features that you need to manage your crypto more effectively. It may take working with an exchange or two to find the best fit for your needs.
Regulations for crypto are still a work in progress. It is important to determine whether or not the exchange that you plan to use is available in your area. Even if it isn’t available now, it could be in the near future as some of these crypto currencies expand rapidly.
Those using an international exchange need to be aware of any regulatory changes that could make it illegal to use that exchange in your area. Platforms generally keep their customers up-to-date, but changes can happen swiftly. Always be aware of the regulations within your area.
We have finally reached the point as a society where the majority of data is consumed through mobile platforms over desktop applications. Because of this, it is important for the top exchanges out there to offer some kind of mobile app to accommodate.
That said, not every platform has jumped on board just yet. There are a few apps out there that are both user-friendly and robust, making it easy to manage your crypto account and to make the trades that you want without having to go to some clunky website first. All of which means trading, buying, and selling crypto faster and more efficiently than ever before.
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