When you’re looking to make Nascar bets, you go out of your way to look into Nascar odds so you can make a more informed choice on your next bet. The same applies to you wanting to find the best cryptocurrency exchange platforms online.
If you wish to make a more informed decision on which platform to go for, you need to know what exactly you have to search for. So, we’ve decided to put together top tips that you should follow when you’re searching for a cryptocurrency exchange platform.
What Is A Crypto Exchange?
Crypto exchanges are online platforms that allow crypto traders to trade their digital currencies of choice in exchange for other assets. Exchanges are an important part of the ecosystem behind cryptocurrency because a lot of the traditional investment firms don’t offer cryptocurrencies in their business portfolios.
So, without exchanges, traders would need to actively search and find another person that’s willing to trade with cryptocurrency and agree to take it at an exchange rate. The trader would then be responsible for sending the coins directly to the other party’s wallet, and this would be a somewhat complicated process.
Crypto Wallets vs. Crypto Exchanges
Crypto exchanges and wallets are both very important tools that are used to manage cryptocurrencies. Wallets are designed to act as an online storage facility to keep your funds safe. But exchange platforms are trading hubs used by traders to convert fiat currency to digital currency and buy and sell crypto depending on what the current market rates would look like at that time.
Crypto exchanges facilitate trades between users and then also convert fiat currencies into digital ones. They are also available to traders 24/7, which is unlike what you’d find in your more traditional investment firms.
Crypto wallets assign private keys to digital wallet owners, and these keys will be used to access your cryptocurrency on the blockchain.
Wallets are offered by independent developers and exchanges. A crypto digital wallet can be a physical storage device, be an online-only platform, or incorporate both aspects as well.
What To Look For In A Crypto Exchange Platform
When you go about choosing an ideal crypto exchange, the most important things you should look out for are functionality and security measures.
It should have most, if not all, of the basic and important features you’d expect to be using while trading, whether it has to do with providing additional lines of defense, fiat-to-currency trade pairings, searching for a specific altcoin or stablecoin, or liquidity aggregation.
The platform should also be easy to navigate around, especially when it comes to finding important information. This is a feature that’s important to both experienced and inexperienced traders that could be struggling to use a platform that’s less intuitive or seeking greater usability.
Another important thing to keep in mind is considering geography. This is because not all exchanges are available everywhere in the world.
How To Check That Your Crypto Exchange Is Legitimate And Secure
Always keep an eye out for fake mobile apps and websites. Even in cases where the platform may seem legitimate, make sure you have not misspelled any word in the copy. And with the website, always check to see if there’s a small lock right in the corner of the URL bar.
Always remember that apart from just avoiding scams, you have to keep in mind that trading crypto also poses its risks. This is because they are highly volatile, making them subject to unexpected increases and decreases in price.
Opening A Crypto Exchange Account
Each crypto exchange will have a unique registration and setup process. There will be some that will let you register an account with them without your need to verify your identity, and this may entail asking for confidential information.
Other platforms will need you to undergo an extensive process known as “Know Your Client” (KYC), so everything is in line with the government regulations that are against money laundering and fraud.
On most crypto exchanges, you will be asked to provide your name, phone number, email address, Social Security number, and form of identification.