Blockchain and cryptocurrency go hand in hand, but only a few people comprehend how the two work together. Some even use the same interchangeably. However, blockchain is the technology used in creating cryptocurrency and also a medium through which crypto transactions are carried out. This makes it the transaction medium for crypto traders.
Blockchain, acts as a ledger for cryptocurrency trading activities by recording transactions as they happen in connected blocks that cannot be easily hacked, making the network safe from cyber attacks. All this takes place in a decentralized network that is not owned or controlled by anyone.
The cryptocurrency wave is taking shape through exchange platforms, particularly in the financial sector. Its global value is expected to grow to $5,190.62 million by 2026, indicating that the demand for crypto services is not slowing down soon, where the most popular cryptos include the pioneer bitcoin, ethereum, litecoin, tether, and XRP. One of the key factors to consider when looking to engage in digital trade is the choice of the exchange platform.
9 Tips for Selecting a Reliable Crypto Exchange Platform
In an era when online fraud is rampant, it is crucial to understand that not all sites purporting to be crypto platforms fit the description. For example, not all platforms meet the security standards of crypto trading, therefore, putting your digital assets. Others fail at creating the best token distribution models to stand the test of time. Others still are purely created to carry out fraudulent transactions causing losses to investors.
So, which parameters should you use to select a reliable crypto exchange platform?
You can narrow down your search for a reliable cryptocurrency platform through these tips:
Licensing and Other International Permits
Reliable crypto exchange platforms comply with licensing requirements that help to combat international vices like money laundering and terrorism funding. Since crypto trading is still growing, licensing may vary in different jurisdictions.
For instance, you choose platforms based in jurisdictions that recognize cryptocurrency trading, such as some States in the Us. You need to do due diligence to ensure that they are licensed by responsible authorities such as the EU’s Anti-Money Laundering (AML) regulators. Doing so gives you peace of mind knowing that the platform is operating legally and that your digital assets are safe.
Unbiased Reviews
Other customer reviews can help greatly in deciding which platform to engage. However, even reviews can be exaggerated or biased, hence the need to use trusted online review platforms for unfiltered opinions. A background check will help you to find a suitable platform. A platform with a great reputation usually has an outstanding five-star rating.
You can find out if an exchange has the best practices in the industry through reviews and blockchain consulting. Remember to ask friends, colleagues, or relatives who are into crypto trading for recommendations.
Transaction Speed
We all know the impatience with sites or platforms that take longer to process requests. You wouldn’t want the same experience in crypto trading, where speed is of the essence in transactions. Therefore, do not compromise the speed of transactions when selecting a crypto exchange service provider to enjoy seamless processes devoid of frustrations.
User Interface
If you are new to the crypto exchange, you should go for a platform whose interface is easy to use. Some platforms are easy to navigate for new users but, at the same time with an advanced layout for experienced traders.
Not all platforms put beginner’s needs first; hence, you will likely get lost in their confusing interface. Therefore, consider kickstarting your trading experience in an exchange that’s easy to understand and offers intuitive navigation. This is especially helpful if you’re a new trader. It would also help if you started by searching for the best cryptocurrency exchange for novice traders where beginner interests are prioritized.
Trading Charges
Cryptocurrency exchange platforms make money from imposed trading fees that users part with when purchasing digital assets. Seek to understand how much you will be charged for transactions so that you do not end up sending your funds to extortionists under the guise of crypto platforms. Most trading fees start at $0.99, but it also depends on the amount being transacted. You can compare the fees across various potential platforms and settle on the most reasonable.
Security and Data Protection
Most traders enter the world of cryptocurrency intending to rake in high profits, so you can imagine the shock of losing your hard-earned assets to cyber criminals. If you are always up-to-date with news in the crypto industry, you have probably come across fraud-related cases, some involving mass crypto funds being swept away by hackers.
You can prevent this likely occurrence by ensuring the platform you would like to engage has implemented an impenetrable system and that your data is protected from online threats. A platform with a cold storage feature can be a great place to start because your assets are kept offline, away from potential hacking.
Deposits and Withdrawals Terms
Crypto exchange platforms may differ in withdrawal and deposit limits, hence the need to familiarise yourself with such limitations. Knowing the minimum and maximum amount you can withdraw and the time frames to adhere to is critical. Same for deposits where most platforms have minimum deposits.
Assets Diversity
Given the different types of cryptocurrency available, engaging in a platform that provides several options would be wise. You may be interested in one coin, but as you gain trading experience, you may want to try the rest. Also, investing in different cryptocurrencies is advantageous because you can concentrate on the well-performing coins while waiting for others to stabilize.
Insurance
Some exchanges value their clients and strive to win their trust through, for example, getting insurance for their funds. You should consider registering in a platform that protects your assets from unfortunate threats like hacking and other costly eventualities.
Wrapping Up
Choosing a crypto exchange is not a walk in the park, especially for beginner traders. You, however, should keep your guard up because you can only protect your money by using a reputable exchange. Pay attention to critical issues like security, liquidity, and licensing to get the most out of your trading experience without the fear of the platform collapsing.
New users should all consider using a crypto exchange with responsive customer support because you are bound to seek clarity on various matters, and you want to avoid dealing with delayed feedback on urgent issues.
