With the help of sports news, odds, and predictions, you can easily know exactly what to search for when you’re looking to make your next sports bet experience worthwhile. But when it comes to cryptocurrency, the process may be a little more extensive when you’re looking to buy, sell, and trade it.
With the help of online resources and informative guides, you can work your way to knowing everything you need on understanding the fundamentals of investing in cryptocurrency. So, if you’ve already done your research and are looking to head over to the next step, which is to find a crypto exchange platform, then you sure are in the right place.
We’ve put together the perfect guide on what to know when you’re looking for a cryptocurrency exchange.
What To Look For
Cryptocurrency exchanges are online platforms that crypto investors use to buy and sell cryptocurrency. Here, you have the option to trade one cryptocurrency for another or buy cryptocurrency using regular currency.
Therefore, as you go about finding a credible crypto exchange, here are features and points you should take into consideration.
Sometimes, your location may have restrictions on whether you can buy and sell crypto on certain exchanges because of national or state regulations.
For information on geographic limitations and accessibility factors, you can visit the platform’s website to go through the terms and conditions of service.
As you should know by now, cryptocurrency isn’t supported by a central institution, making your crypto holding unprotected unlike what you’d find when you have your money locked in a bank or traditional investment. Because FDIC insurance doesn’t apply to crypto balances, you’re responsible for protecting your cryptocurrency.
To protect your cryptocurrency, you can opt for insurance policies that some exchanges will have to protect digital currencies from fraud or hacking.
Irrespective of whether you wish to keep your currency within the exchange or only intend on keeping it there for a short time, security measures on an exchange should be a top priority over anything else.
Another feature you can look for regards the general online security measure like two-factor authentication. This is so that in addition to having an account username and password, your identity also needs to be verified through additional steps.
In general, it’s always best to sign up with popular exchanges that already have a large customer base.
If an exchange offers high fees, then this shouldn’t act as a red flag for you because higher fees can be worthwhile when you measure it up to the added insurance and protection that you’ll be getting on more popular exchange platforms.
In most cases, exchange fees remain fixed, but this will normally be in the form of a percentage of your trade. They may also differ depending on the currency you’ll be using to trade.
So, always check these fees before making your investment.
When you go about buying, selling, or trading cryptocurrency, the exchange you’re using should offer you enough trade volumes to make sure that your holdings are liquid so you can sell them whenever you want.
Usually, you’ll find this more with popular exchanges with larger customer bases and larger trading volumes.
Not all exchanges will offer you a wide range of thousands of cryptocurrencies to choose from.
Popular coins like Bitcoin and Ethereum are a popular pick to find on any given exchange. However, newer coins with a smaller market cap may require a bit more shopping.
Though we’d always encourage our readers to stick to big names, you can also opt for smaller, more new coins under the understanding that they are a riskier gamble to invest in.
For crypto investors starting, it’s always best to choose an exchange that will offer you an opportunity to learn about the different digital assets, coins, and blockchain technology through educational tools available on the platform.
Some exchanges, like Coinbase, offer rewards for learning about the new coins on offer.
So, whenever you watch a video or complete a quiz relating to the various coins, you can earn rewards by having a small portion of the cryptocurrency. Other platforms go as far as offering insight on crypto markets, innovations, and the overall history of cryptocurrency and its forms.