Choosing the Right Exchange: Crypterium’s Guide
We are soon going to reveal the first official exchange where our CRPT token will be listed. Crypterium has had such a successful ICO it became the world’s largest project by the number of token buyers. We know that our community unites everyone from blockchain specialists to less experienced users.
By design, the blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. There is no legal regulation of the market, and every user is fully responsible for his or her funds. So don’t let your guard down: make sure to learn each smart contract inside out, keep an eye on various projects and proof-check every transaction. Keep asking yourself: “Why am I sure this is not a scam attempt?”
So What Exactly is a Cryptocurrency Exchange?
Generally speaking, it is a site where you can trade cryptocurrencies for other assets (such as other cryptocurrencies or fiat money), as well as withdraw funds in your preferred currency.
Platforms specializing in cryptocurrency or token operations are usually not licensed. This means they are not “currency exchanges” in the full sense of the word: they are not necessarily regulated by law and may even be illegal in certain countries.
Professional traders usually need access to complex trading instruments as well as the ability to perform momentary operations. In this case, platforms will most certainly require the trader to have a verified account and go through a KYC procedure. But if you just want to perform a one-time operation, you can use a platform that allows to skip creating an account altogether.
Keep in mind that traditional currency exchange platforms halt their operations in case of dramatic changes in the value of fiat assets. However, such instruments of control are not always employed at cryptocurrency exchanges, so traders bear additional risks there.
What Platform Should I Choose?
The most important thing is to do your own research. Figure out your exact purpose of choosing a cryptocurrency exchange platform, then pay attention to the following factors:
1. Safety and Reliability. Has this platform experienced technical problems before? Will it still function properly if the volume of operations substantially increases? Has it ever been hacked or overwhelmed by a DDoS attack? All these bits of info can help you with your decision, so always be on the lookout for them.
2. User Support. Will you be able to get an expert answer in case of trouble, or will you simply be redirected to an FAQ page?
3. Deposit and Withdrawal Methods. Keep in mind that using a credit card to buy cryptocurrency will always require identity verification; it is also likely to bring along higher transaction fees and additional chances to get scammed. Buying cryptocurrency via bank transfer will often take a lot of time as the bank needs to process your request, which is not always done in an instant.
4. Exchange Rate. Different platforms have different exchange rates. The difference may be as big as 10% — and in some cases, even more than that.
5. Transaction Fees. Pay close attention to any hidden fees that you may encounter while trading, depositing or withdrawing funds. Make sure to find out everything about a given platform’s fees before registering and making your first transaction there.
6. Geographical Limitations. Some functions of a platform may be inaccessible to users from certain countries. Consider this before registering.
7. Margin. Just like at the stock market, margin trading can be accessible to big-time cryptocurrency traders. If you are such a trader (or plan to become one), make sure to look for this feature.
“One more criterion is turnover. Exchanges have ratings based on the volume of trading: the higher the volume, the more people have entrusted their funds to the exchange. Also, pay attention to the lifetime and history of the given exchange. Be cautious about new exchanges: it is better to give them some time to prove themselves”.
Gleb Markov, COO at Crypterium
Other Things to Consider Before Making a Deposit
• The transparency of data, value and volume of digital assets at the exchange;
• The structure of transaction fees (yes, the fees are worth mentioning once again). Such fees can come in many various forms: fixed payments, interest rates, etc.;
• The availability of different deposit methods: PayPal, credit card, etc.;
• The number of cryptocurrencies available for trading;
• Tutorials and support for novice traders;
• Positive user reviews — Reddit is a good place to check for those.
Nevertheless, “negative feedback is not a stop-factor as long as it is not prevalent. If there is a lot of negativity surrounding the exchange, it is most likely to have certain technical problems”, — says Gleb Markov, COO at Crypterium