Today in the world there are more than 300 platforms for exchanging, buying and selling digital currencies (assets) – hereinafter referred to as “digital currency”. Unfortunately, there is no universal navigator for safe and trusted digital currency exchanges. But there are a few rules that can serve as a guide.
Digital currency exchanges are special online platforms that allow you to conduct transactions with digital currencies. Digital currencies can be purchased and sold with real money (fiat money), Bitcoin or other altcoins. You can use Immediate Cipro Pro AI to do this successfully. On the sites you can also exchange one digital asset for another, while making money on the difference in rate. We will list several criteria for choosing a digital currency exchange platform.
Define the goal
Before choosing a digital currency exchange, it is important to answer the question: “what is the platform for?” To trade digital currency, you need exchanges that provide margin trading; on such platforms you can make money on the difference in rates, as well as buy and store digital currency in a hot wallet.
It is also important to understand the difference between decentralized exchanges and centralized ones. A decentralized exchange is a blockchain platform that does not store funds and personal data of users on its servers. The platform was created to search for matches on applications for the purchase or sale of assets. Trading on such exchanges occurs directly between participants without any financial intermediaries.
Centralized exchanges are profit-oriented platforms that are managed by a company or a specific person. These platforms are responsible for securely storing user data, monitoring system operation and tracking trading information.
Check reputation
Basic information about the digital exchange can be obtained on the official website, but this should not be limited to. It is necessary to read reviews from traders about the digital exchange on various thematic forums, for example, on BitcoinTalk or Reddit, etc.
Information on the Internet can be ambiguous, because every digital exchange has negative reviews. It is important to evaluate not the number of such comments, but their content and the reaction of platform representatives. It is from customer reviews that one can understand the efficiency and completeness of the solution. Some digital exchanges take weeks to resolve trivial issues, while others complete complex technical support in a couple of hours.
Learn about fees, fiat support and withdrawal methods
Newcomers to the digital industry should pay attention to those digital exchanges that provide the ability to top up with fiat funds and have simple interfaces for trading. This will allow you to avoid possible risks associated with primary counterparties (exchangers and payment systems), as well as to prevent errors when working with the trading terminal.
Each digital exchange has its own terms and conditions. Before funding your account, you should make sure that the platform charges adequate commissions for trading transactions. On some sites it can reach up to 10% for depositing or withdrawing fiat funds.
Find out the number of trading pairs
The more cryptocurrency pairs a digital exchange has for buying, selling or exchanging, the more opportunities there are for investing and earning money. It is also necessary to choose digital exchanges with a high daily trading volume. Trading volume is the number of all transactions carried out over a certain period. It is this indicator that indicates interest in the asset on the part of other market participants. If a digital currency (cryptocurrency) is trading at low volumes, then the demand for it is minimal.
Understand security requirements
It is recommended to check for two-factor authentication and activate it immediately upon registration. It is also worth considering the fact that the KYC (“Know Your Customer”) policy on different digital exchanges may differ. Somewhere you will have to send not only photocopies of the first pages of your passport, but also confirmation of your place of residence. For most foreign digital exchanges, a registration stamp, for example, in a passport, does not have legal force, so representatives of the platform may ask the user to send a scan of a rent receipt or a similar document.
No digital exchange guarantees (can guarantee) 100% safety of its users’ funds. The number of hacks on cryptocurrency platforms is growing every month, and you need to be prepared for such features of the industry.
Experts name several digital exchange platforms that they believe can be trusted today: Binance, Bittrex and Kraken.
Choosing a digital exchange is a bit like finding the perfect car. It should be convenient so that any operation can be completed in a couple of clicks; safe, without hacking wallets and losing assets; maneuverable, with a maximum number of trading pairs and great functionality. Before you find your car, you need to sit in more than one car dealership. It’s the same with digital exchanges: finding a reliable platform can take a long time. But these efforts are worth it to have peace of mind for your assets.
