10 Things To Look For In A Cryptocurrency Exchange
Before you decide to enter any cryptocurrency market, it is essential to research and learn about it thoroughly. As an investor, don’t be in a rush to join the trend. There are a lot of platforms out there with several digital currencies you can gain access to. However, there are things you should know before you dabble in any one of them. This article is about the vital things you need to look for before investing in a crypto exchange.
1. Ease Of Use
This is something you should look for on any exchange platform. This depends on how familiar you are with trading. Exchanges with complicated interfaces with vague charts and display order books might be intimidating for a new investor.
If you are one, you could go for first-time-user friendly exchanges. Some cryptocurrency sites have options for basic and advanced views. Aside from this, you can also use various trading tools such as an automated bot for Gemini or any other cryptocurrency exchange to help you keep track of current trends and manage your investments.
2. Crypto Selection
Different exchange platforms would allow you to trade varying numbers of crypto selections. If you are new in the trading market, you should streamline yourself to platforms with smaller crypto selections. For instance, you could look for platforms with well-renowned and sought-after currencies.
More prominent platforms with more choices could confuse or complicate issues for you. A more experienced trader might sync well with an exchange with bigger selections and may invest early in less popular coins.
The same way the reputation and rating of a restaurant say a lot about its quality, so it is with the crypto exchange market. There is a high monetary risk involved with investing in crypto. That said, you have to monitor the reputation of the crypto exchange among other investors.
Conduct thorough research for reviews from past and current crypto exchange users. There have to be good reports and feedback before you can dabble into the transactions of a cryptocurrency exchange. Aside from this, it is also crucial to ensure that the trading tool you use in cryptocurrency exchange, such as trading bots like Bitsgap is not a scam and would actually provide you with exceptional service and support in trading.
There is hardly any government regulation for the crypto market. Also, the presence of the crypto black market makes it a bit shady. This is why you should look out for security in any cryptocurrency exchange.
Ensure that your platform takes crucial precautions to ensure the safety of your personal information. Features like two-factor authentication, offline (cold) storage, and end-to-end encryption must be present in any crypto exchange. This is essential for the safety of your transactions to prevent cybercriminals from stealing your information and hacking your account.
The fees in the industry fluctuate as of now. It usually depends on the increase and decrease of risks. However, as the risk decreases, competition increases. This will likely result in standardization and a drop across all sides. There are trading fees and additional commissions charged on robust exchanges.
Some cryptocurrency exchanges have a reputation for relatively low fees. A few exchanges also offer commission-free trade, while some may charge fees on withdrawals and deposits. This is something you must be well knowledgeable about before entering an exchange.
Some regulations could make some exchanges illegal or unavailable in a state or country. So, one thing you should look out for is if the exchange is usable in your state or country.
For international exchanges, be on the lookout for regulatory changes that could render an exchange illegal in your country. You should be kept updated on any changes that may occur by your customer service. However, you should carry out the research yourself.
Some platforms do not come with wallets where you can keep your crypto holdings. However, monitoring and utilizing your wallets and transactions on the same platform is more convenient. External cold wallets could also be used for large amounts of crypto for extra security. Whatever the case may be, ensure to look out for the presence of a wallet in any crypto exchange.
8. Buy Or Trade Options
Some platforms allow crypto-to-crypto trades while others don’t. You could use your debit or credit card to fund your account to buy crypto on some platforms, while others may have the option of connecting with your bank account to transfer funds. Look out for which one applies in a cryptocurrency exchange.
9. Mobile Apps
You could look for cryptocurrency exchange with a user-friendly mobile app. This would help you to manage and transact on your crypto account easily. You would escape having to navigate and getting lost on a website.
10. Customer Service
Nothing feels more secure than having prompt and supportive customer service from your crypto exchange. Anything could go wrong at any time, and it’s best to have customer service that responds to your questions or complaints quickly. This does a great deal and would improve the quality of your experience.
Investing in crypto comes with its own risk. You should ensure that your crypto exchange platform does not pose an additional risk to your transactions. Ensure that it is well secured, user-friendly, and available in your region. Learn how to do research on cryptocurrency, read reviews about the crypto exchange and ensure that their customer service is quick and responsive.