Cryptocurrency
Exchange Platforms process like banks in many ways. They hold your money; they
manage your transactions and they are responsible to keep your funds safe. They
should also be user-friendly, reliable, and easy to use. Finding the best cryptocurrency exchange for
you can take some time and effort, but it pays off in the long run. We
recognize that it can be intimidating to assess which exchange is good or which
isn’t, hence this article will guide you on the factors to consider for
the best crypto exchange platforms.
- Reputation:
It is important to look up the reputation of an exchange platform. The best way to
find out exchange is to look through the reviews from individual users and
well-known trade websites. Reviews will give you a rough idea about the
authenticity & features of the exchange. All reviews are important because
they are based on factors like liquidity and security. Furthermore, you can
check online communities of these exchange platforms.
- Fees:
Every digital currency exchange platform has
a completely different fee structure that is targeted to a particular type of
user. Before joining, make sure you understand the deposit, transaction, and
withdrawal fees. Fees will differ considerably depending on the exchange you
employ. Cryptocurrency transactions are supposed to be close to free if you’re
sending coins directly from one blockchain address to another. If a user needs
to swap one currency for another, then the Cryptocurrency exchange platform
they use will charge for that service.
- Payment Methods:
What
payment methods are available on the exchange? Credit & debit card? Wire
transfer? PayPal? If an exchange has restricted payment choices, then it may
not be convenient for you to use it. Remember that buying cryptocurrencies with
a MasterCard can invariably need identity verification and buying
cryptocurrency via wire transfer can take considerably longer as it takes time
for banks to process.
- Verification Requirements:
The vast majority of the Bitcoin trading platforms need some sort of ID
verification so as to create deposits & withdrawals. Some exchanges will
allow you to remain anonymous. Although verification, which can take up to a
few days, it protects the exchange against all kinds of scams and money laundering.
- Liquidity:
Liquidity
on a cryptocurrency exchange platform simply means the degree to which a
particular asset can be quickly bought or sold without altering the general
stability of its price. It is highly advised to join an exchange platform with
higher liquidity since it guarantees market stability of the asset. Higher
liquidity gives access to quicker transaction times. It makes it possible to
complete exchange & transactions faster, more easily and without having to
deal with price volatility.
- Security:
Security
is the most important factor in choosing a digital exchange platform. Before
you pick an exchange platform, make sure to check its history, make sure it
offers solid security measures to protect your funds. Any crypto exchange
platform should have basic security features like two-factor authentication and
keeps its deposits in cold storage so that they can’t be grabbed by electronic
thieves, username, password, and extra security keys. Measures such as e-mail
encryption with OpenPGP or U2F is a bonus.
- Transparency:
A cryptocurrency exchange platform has to maintain a level of transparency to
gain user trust. Before choosing a digital exchange platform, it is important
to check its authenticity. Does the exchange reveal its owners, its headquarter
address and information about the managing team that’s working for your assets?
Transparent cryptocurrency exchange
platforms also publish their cold storage address or help check their reserves
in other ways, like audit information.
- Geographical Restrictions:
First,
you’ll want to make sure that the Cryptocurrency Exchange Platform you’re going
to use is available and legally operating in your country. Some specific user
functions offered by exchanges are solely accessible from certain countries.
Make sure the exchange you want to join permits full access to any or all
platform tools and functions within the country you presently sleep in.
- Usability:
Cryptocurrency Exchange Platforms shall offer a mobile app for its use. But whether or not you
want to access the exchange from your smartphone is a further consideration for
a platform to be user-friendly. The actual usability of a platform is judged
through the quality of its user interfaces. It can vary widely between
different cryptocurrency exchange platforms.
All
in all, selecting an exchange is the gateway to the crypto world. If you’re
simply getting started with crypto, There are many factors to consider when
choosing the best exchange, It is recommended to use Digital Ticks exchange platform
since it holds all the factors mentioned above.
This content has been taken from https://digitaltickscryptocurrencyplatform.wordpress.com/2019/07/23/guide-to-find-the-best-cryptocurrency-exchange-platform/ and originally posted on https://digitaltickscryptocurrencyplatform.wordpress.com/2019/07/23/guide-to-find-the-best-cryptocurrency-exchange-platform/
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