A cryptocurrency exchange is a digital platform that allows its users to send, receive and spend digital currency of their choice. So, a crypto exchange is crucial to anyone with crypto ventures. Choosing the wrong exchange platform can affect your crypto undertakings. In this blog post, we’re going to let you know what you need to consider when opting for a cryptocurrency exchange platform.
Serious crypto traders and investors will always look for an exchange with low trading fees. High trading fees means you’ll be paying high each time you trade, sell and buy a cryptocurrency. Saving some on each transaction would definitely add up to a sizable amount. Moreover, you also need to see if they have any spread fees. Most crypto exchanges will always be reluctant in talking about such fees. These fees can be as high as 5.2%, which will be charged in addition to trading fees.
You need to see things in a skeptical way to make sure the exchange you’re looking to use is secure and worth a try. Start with the web address. Prefer an exchange with HTTPS web address, as it is fully encrypted. Avoid HTTP connections, as they aren’t not considered reliable. When it comes to login safety, it should have a two-factor authentication. Besides, customer deposits must be store offline in cold storage, as it’s less susceptible to hacks and theft attempts. The presence of auditing programs monitoring exchange acuities 24/4 is considered a big plus.
They crypto market isn’t as estalibaed as the tradition finanital markets which are fully regulated and supervised in most countries. Since the inception of crypto and blockchain technology, there’ve been many exchange thefts, security breaches and hacks that have caused users to lose their money.