In the event that you are planning to start trading crypto in the nearest future, learning about underwater stones is crucial. Indeed, getting into the deep waters of any financial market is a risky deal without the proper information. On the other hand, once you have a brief preparation course, things might turn in your favor!
What does it generally mean to work on a crypto stock exchange? People enter such platforms to make money through successful trade. To put it shortly, you should buy tokens for a lower price and sell them for a higher price to make a profit. The whole process sounds simple, but there is always a risk of failure. Hence, use your knowledge as armor! Choose an exchange wisely using the following criteria.
Usually, when a person is stressing over a decision, they tend to follow the trends. If a large group of people prefers some product over another, making a choice becomes easier. Such a principle works with any kind of goods and services, including crypto stock exchanges.
Luckily for you, there are enough sources of public opinion today. Several websites rank exchange platforms according to particular indicators like trade volume. For instance, CoinGecko states that the best places for crypto trade are:
- Coinbase Exchange;
- Crypto.com Exchange;
- Huobi Global.
Sure, the lists differ from site to site. Yet, a comprehensive analysis helps get the general idea of the crypto market. If you see the name of a crypto exchange platform in multiple rankings, it is a good sign! It means that most traders trust them. Therefore trade volumes are enormous.
Another crucial sign to look out for is the excellent reputation of a platform. Unfortunately, some people neglect this aspect and end up losing their investments and time. In case you want to sleep soundly, care to read the info about a stock exchange before using it.
Without a doubt, the official web page of any platform seldom contains any compromising information. The websites attract as many users as possible at any cost, so they appear flawless. However, there are independent places out of their control, like forums or revealing documentaries. Owing to such sources, you may hear about:
- Personal data leaks;
- Hacker attacks;
- Poor management.
Nowadays, hiding dirty secrets is almost impossible, thanks to the Internet. Honest reviews can help you pick the most reliable platform with a shiny clean reputation!
In the same fashion as reputation, fees become a subject of discussion. All traders dream about a secure crypto exchange with low commissions. Yet, remember the rule that applies to all cases in a capitalistic world. If people want a high-quality service with lower risks, they open up their pockets!
Naturally, regular payments are something that any crypto exchange lives off. How would the whole teamwork without a salary? There are numerous spendings in such a business, remember about it. On the other hand, too low or zero commissions are a reason to be suspicious. This could be a hook to rob an unaware investor. Look for the perfect price-quality ratio!
Another equally important factor to consider is the law. In fact, the legal aspect is one of the first things anyone should study before trading. Proper research and following the rules help avoid additional problems. People generally think that the crypto world is free land without regulations. For this reason, it becomes a surprise for many that there are rules.
To begin with, consider the laws of your home country. Maybe the government is strict towards the crypto trade, or vice versa. In the first case joining a crypto exchange platform may result in legal responsibility!
Next, find out about the jurisdiction of the crypto stock exchange that you favor. Markedly, some of them work in a limited number of countries. What if they omit yours from the list? Fortunately, other options might fit better.
Finally, the most reliable method is to pick a platform that origins from your own country. This way, a trader avoids possible complications. Moreover, in this case, solving potential misunderstandings is less problematic.
When choosing a crypto exchange platform, the following extra step is analyzing its security. Because such places always collect personal data and manage giant volumes of financial resources, safety is essential. To protect yourself, look up the following info about the company online:
- Address of headquarters;
- Phone numbers and emails.
The platform is transparent and likely safe for work if the mentioned data is available. On the contrary, shady crypto exchanges often hide such information about themselves. Furthermore, spotting a reliable platform is easier when it publishes its audit results.
On top of everything, websites with two-factor authentification are better for protecting your private information. As an illustration, CEX.IO is a secure USA bitcoin trading platform that falls under these criteria.
At present, looks are as important as what is inside, and this applies to crypto exchanges as well. Most of them offer similar services and conditions. How does one stand out then? Above all, a future trader considers the convenience and simplicity of a website.
In order to meet demands, platforms create user-friendly interfaces! In other words, they should be intuitive for newcomers unfamiliar with the service. High-quality crypto exchanges care about their customers, so they gravitate towards minimalistic designs.
By all means, the language of the interface is crucial as well. Usually, globally known crypto stock exchanges use English. However, the assortment of languages differs from country to country. Of course, finding the platform which you understand is a success! Trading is less complicated if you do it without a dictionary.
In the long run, all the time you spend on a crypto exchange platform revolves around making a profit. Such virtual places have multiple characteristics that define users’ choices. Under some circumstances, potential gains are worth the minor inconveniences. In other cases, a person seeks a better place for the crypto trade. All in all, there are dozens of options that can satisfy even the pickiest traders!