Many investors today see cryptocurrencies such as Bitcoin and Ethereum as great alternative forms of investment due to increasing economic instability across the globe. Fortunately, you can take part in it too. But to ensure you start on the right path, it’s paramount that you follow the correct process before investing your hard-earned money.
It’s said that the best place to start is by choosing a cryptocurrency exchange, the platform through which you can buy and sell cryptocurrencies. Yet if you’re unfamiliar with cryptocurrency, this technology can appear quite intimidating. Fortunately, this blog post eases your concerns by detailing what you need to consider when searching for a reliable crypto exchange to trade these digital assets. Continue reading to learn more.
- Payment Method
Cryptocurrency exchanges provide you with numerous ways of funding your crypto wallet, which usually differs from one platform to another. Some popular options include using debit cards, credit cards, and others. Further, additional helpful details are available with a simple visit swyftx.com and other sites to help you find the crypto exchange platform favorable to you.
Considering payment methods accepted by the crypto exchange is vital if you only have fiat currency and want to access the cryptocurrency market. You also should consider the duration it takes for the purchase to be complete. This is because how long a transaction takes to finish varies greatly, with some crypto exchanges finishing instantly whereas others can last for a couple of days or weeks.
- Authenticity And Security
Buying cryptocurrencies and leaving them with a crypto exchange means you’re trusting someone else to safeguard your money. Thus, you must ensure that they have appropriate protocols to protect your money. This is especially because these digital assets in today’s era of heightened cybercrime are often a target of hackers looking to capitalize on exchanges with inferior cybersecurity systems.
With this in mind, you should only consider a crypto exchange with advanced security features such as;
- Cold storage, an offline storage that’s safe against hacking and theft;
- Two-factor authentication;
- SS Site Security Certificate;
- Multi-layered verification when making withdrawals; and
- The easy transfer between hardware wallet and crypto exchange.
With such security features, you’ll have peace of mind knowing your crypto investment is safe from theft.
- Crypto Asset Choices
There are numerous kinds of cryptocurrencies on the market today, and there’s no crypto exchange that’s got all of them. Usually, these crypto exchanges trade a broad range of currencies. But generally, many popular crypto exchanges trade the higher market cap cryptocurrencies such as Bitcoin. If you want exotic, less-traded coins, you should consider going for the smaller crypto exchanges.
As a general recommendation, you must first find out the cryptocurrency you feel is the most promising. Knowing this will guide you to know which crypto exchange to work with because you can only get a handful of options from any you decide.
- Ease Of Use
Trading on crypto exchanges can be intimidating especially if you’re new to cryptocurrency. This is why you must search for a crypto platform that’s easy to use. Otherwise, you might end up making avoidable errors and, in the process, lose money. This is why you should find a platform that provides you with a free trial to understand how the crypto exchange works. As a result, you save money that you’d have otherwise lost due to simple mistakes when navigating the platform.
- Availability In Your Country
Before investing your money in a specific crypto exchange, first confirm if it’s available in your country or state. This is because not all crypto exchanges are permitted to run their operations worldwide due to the cryptocurrency market’s financial regulations. It’s thus best to first contact the crypto exchange to find out whether you can deposit fiat currency while in your currency without any repercussions.
- Fee Structure
The transaction fees charged by one cryptocurrency exchange to another differ greatly. These fees are usually a percentage of every trade, and some crypto exchanges usually offer discounted fees. Henceforth, make sure to check the fee and transaction fees for every transaction you make before deciding on the crypto exchange to choose.
You should especially take note of the fees if you often buy and sell cryptocurrencies. These fees can rack up over time when doing many transactions and eating into your profit margins.
Over the last few years, the craze over cryptocurrency has reached great heights due to interest from major financial institutions to business-minded millennials. This hype for cryptocurrency has led to the springing of numerous crypto exchanges available for you to choose from.
Nonetheless, not all of them are ideal, so you need to do your due diligence to ensure you choose the right one. This guide has eased this for you by detailing essential things you should consider when looking for a reliable crypto exchange.