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5 Things to Look for in a “Perfect” Cryptocurrency Exchange

5 Things To Look For In A “Perfect” Cryptocurrency Exchange

So, are you ready to dive into the world of Cryptocurrency?

Well, it’s an amazing decision as a whole, if I’m being honest. However, before you make an investment, there are a number of issues you need to keep an eye on. 

And, choosing a Cryptocurrency exchange is certainly one of them.

In essence, choosing an exchange, especially in today’s market of inflation, is quite difficult. I mean, if you do a little research, you can find almost 60% of options available out there to be scam. And, if something’s okay in that department, they tend to lack in the security segment.

However, there’s no need to worry.

In this article, I’ll be talking about a few things that can help you out with it. And, there’ll be some additional information available here as well, which might be beneficial for you.

So, let’s get started.

What is a Cryptocurrency Exchange?

A Crypto exchange, in essence, is a platform where you can buy or sell… yes, you guessed it right – Cryptocurrency. Apart from that, you can also utilize the platform to convert one coin to another. For example, if you have Bitcoin in your account, you can easily change it to LTE.

In an exchange, you can buy Cryptocurrency using two methods –

  • With your own real-world money, or
  • With the total virtual cash you own.

If you want to go for the first option, you’ll need to connect your bank account to the profile of the exchange. This way, it’ll be easier for you to make the transaction pretty easily.

Why Should You Use A Cryptocurrency Exchange?

Yes, trading Cryptocurrency and all sounds great. But, why should you opt for an exchange? Is there anything wrong with a trading website, like BitAlpha AI?

Well, no, not really. However, there are some ways in which a Cryptocurrency exchange will work better for trading. Here’s what you need to know about it.

  • A Crypto exchange is user-friendly as a whole. It can offer a familiar way of trading. And, there’ll be an excellent tutorial available in the app as well. If you want, you can watch it and start trading seamlessly. 
  • Almost every Crypto exchange available out there comes with an additional layer of reliability and security. Hence, it’ll be impossible for someone else to steal money off of your account, no matter what happens.

The only issue, in my opinion, is the massive transaction fee it comes with. And, you’ll need to pay the same every time you trade Crypto with another user. So, it can get pretty annoying.

How Do You Find the Best Cryptocurrency Exchange?

When it comes to finding a suitable Cryptocurrency exchange, you will need to make a few considerations as a whole. Here’s what you need to know about them.

Consideration – 1: The Choice of Cryptocurrency

Your exchange platform should have more than one Cryptocurrency choice, period. This way, you will have enough opportunity in front of you to make your investment.

If this is your first time putting money in this segment, I’ll ask you to avoid BTC altogether. Instead, go for something less popular, like Ether or Litecoin.

Consideration – 2: Security of the Platform

Due to the black-market usage and government regulation, the world of Cryptocurrency can look a little shady sometimes. Hence, if you want to avoid anything that’s unholy, make sure to choose an option, which has excellent security in place. 

Here are some factors that you should look for –

  • 2FA or two-factor authentication.
  • Cold storage (an offline storage to protect your accumulated BTC from hacking.)
  • Encryption.

Apart from these, the platform should have more than one password system in place as well. It, in turn, will ensure that no one can get your money even if your phone is stolen.

Consideration – 3: The Required Fees

Like a credit card, the exchange platform will take a small amount of cash from you after you make a transaction. Now, depending on the option you’re using, the quantity of the same can either increase or decrease. Also, if you’re using a robust exchange, you might have to offer a little bit of additional commission cost. 

So, if you want to trade and transact regularly, you should find an option that can help you do your tasks without paying too much. Also, check if it has a 24×7 consumer support channel or not. If possible, you should opt for something that has a mobile app as well.

Consideration – 4: The Overall Availability

Choosing the best or securemost option isn’t going to help you out much at all, if the platform isn’t available in your country. So, apart from everything else, you should also check if it can be used in every part of the world or not.

And, on the flip side, if you’re using an international exchange, you should be aware of each and every regulatory change as well. Also, if the platform doesn’t offer 24×7 customer care, do check when they’ll be available to talk. Hopefully, it’ll help you out as much as you can.

Consideration – 5: Availability of a Wallet

Finally, your Crypto exchange site should have a wallet available too. The alternatives should include the following –

  • Hot Wallet: This type of wallet is mostly connected to the internet. Therefore, it’ll be easier for you to trade Cryptocurrency with it, whenever you want. However, you may find the security stature of this type of wallet to not be up to the par.
  • Cold Wallet: On the other hand, a cold wallet will not be connected to the web. Thus, you can’t use it to make a transaction whenever possible. However, the security of the same will be much better than before. And, it’ll be quite stable as well.

So, When Will You Make Your Move?

Apart from these, I’ll also ask you to check the mobile app of the platform closely too. It can help you use the app even when you’re not sitting in front of your PC.

Also, the customer service of the website should be available 24×7. Or else, you might not be able to get help when needed.

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