Tuesday, March 15th, 2022
If you love crypto, it can be challenging to determine which exchanges are legitimate. Well, it is easy to find lists online, but what should you look for? Here are some things to consider when looking for a crypto trading platform.
What’s a Crypto Exchange/Trading Platform?
Cryptocurrency exchanges and trading platforms are websites where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency, like US dollars or Euro.
Crypto exchanges allow users to trade digital currencies for other cryptocurrencies and fiat currencies like the US dollar. Some exchanges even allow users to trade on margin, meaning users can borrow capital from the exchange to trade cryptocurrencies.
Factors to Consider When Choosing a Crypto Exchange Platform
First and foremost, you want an exchange that has a good reputation. Reputation takes time to build, but only a few months for it to be destroyed. This is because most cryptocurrency exchanges are centralized and vulnerable to hacking attacks, which means that anything can happen at any time.
2. Customer support.
Are there multiple ways of contacting customer support? Do they respond quickly? If something goes wrong when making a transaction or transferring money, do they respond fast enough to help you out? The last thing you want is your money tied up in someone else’s problems.
3. Key security features.
An exchange that keeps your private keys safe is a good sign. The best exchanges do not store your private keys at all; instead, you have access to them directly on your computer or mobile device. This helps protect against hacks and other problems.
4. Ease of Use
Double-check the interface and general usability of the website. Because your finances are on the line, it’s best to operate on a professional, easy-to-use platform.
Do trading fees apply? Yes, nearly all exchanges charge a trading fee for the various services offered. Still, be sure to compare prices before committing to a platform. This is important in ensuring the applicable charges do not eat into your profits.
6. Supported Coins
Which digital currencies are you interested in? Be sure to go through a website’s list of supported coins to see if it offers the currencies you may need to exchange.
With plenty of exchange platforms to choose from, it can be difficult pinpointing the right one for your needs. To make an informed decision, scrutinize your options thoroughly before creating a trading account.