7 Things to Note When Choosing a Cryptocurrency Exchange
Generation and exchange of wealth has incredibly evolved with man. With the advancing technology as the wheel force, exchange or trade has gone digital leading to the emergence of virtual currencies such as Crypto currency.
Cryptocurrency! Is it the money of the future? This can be debatable. It may seem hefty and hard to comprehend the technology behind cryptocurrency, but once you get it, you get it! In a summary, cryptocurrency is digital money, developed and kept electronically in the blockchain where encryption techniques are used to regulate the monetary units generated and also authenticate transfer of funds. It has both transactional and monetary properties.
Different people have different investment and cryptocurrency knowledge, but regardless of whether you are experienced or not, there are some crucial things to consider before you choose an exchange. Here are some of them:
Whether the trading volume is high or the price of the currency is fluctuating or going down, a reliable exchange should maintain smooth operation. Before you start using an exchange, search the internet thoroughly, read financial reports and articles and gather as much information as you can about trading halts and also system crashes. From there you will be able to compare records and decide which exchange to go with because on the real, no one wants to lose their money.
A profitable investment is as good as a safe investment. It is important to note that securing what you have gained can be done through excellent security practices. These practices can eliminate existing loop holes concerning password hacks, identity fraud and lax of security. Therefore, one should be keen in checking how their favorite exchange performs in terms of security.
One way of securing strong and uniquely generated password is by enabling two-factor authentication that can hold the fort and thwart unauthorized cryptocurrency transactions in your online account. Other good security practices include depositing coins in cold storage and email encryption and verification.
3. Coin Pairs Available
There are exchanges that provide a variety of coins such as Bitcoin and Ethereum while there are others that don’t. An exchange offering an assortment of coins may prove worthy as it gives you, the user, more options of coins to purchase giving you the freedom to flexibility.
In simple terms, this is the easiness in buying and selling within the market. An exchange can be measured in this term with high liquidity indicating a large number of buyer/sellers. This is definitely good as it results to better price discovery and faster transactions.
5. Customer Support Quality
Just like other industries in technology, customer care and support is very crucial. It greatly determines the success of their users and the company itself. A responsive customer support can help in solving issues dealing with deposits/withdrawal, trading orders and funds reflection as fast and concurrently saving time, money and anxiousness in the ever fast-paced environment.
6. Trading Fees
If you are a constant trader, it is imperative to understand the transaction fees imposed in your exchange as it will significantly affect your margins. Across various exchanges, there is significant variation in the fee structure for transactions. It is very important to know the amount you will be charged for each trade before you do the actual submitting.
You should also be keen to give proper attention to hidden fees and the fine print. These fees are normally for trading, depositing funds or withdrawing of funds. Look at the limit set on withdrawals also.
7. Ease of Use
This is very important as it will make it simple for users to navigate through the platform, operate and do their transaction without any confusion.
Successful Initial Coin Offerings
Some of the best ICOs that people have bought and earned huge amounts of money in the past include:
It’s evident that the cryptocurrency market keeps evolving and there is always something new over a short span of time. Once you find a suitable cryptocurrency exchange platform then you are good to go.
One of the new upcoming entries is the ParamountDax Exchange.