How to Choose a Cryptocurrency Exchange?
If you’re a trader, miner or just a crypto enthusiast, you may want to try another cryptocurrency with your hand at some stage. It could be the interest that pushes you to do so, or the desire to extend your portfolio of trading or mining. Using a cryptocurrency exchange would be a great way to do that. What, you ‘d ask? Well, to get some crypto, it’s quick, simple, and you don’t need to start your own mining operation.
Reputation
Although the crypto world is all about transactions and trustless processes, credibility is what makes or breaks the network. Like every sensible crypto owner does research before committing their assets to a network, they will look at what others think of the exchange in question. As the crypto world is very new, it is important to know who is who on the scene, at least as opposed to other financial markets.
Security
Now, that you’re sure the exchange with your hard-earned crypto wouldn’t disappear, it’s time to make sure others don’t do it either. That’s where network security comes in. There are a few ways to determine if they have needed security at the platform. First of all, verify whether it has two-factor authentication (2FA) or not. Nowadays, to have one is basically a safety standard. Also, testing what sort of 2FA they have will be a good idea: Google authenticator, SMS codes, email authentication, etc.
Trading Volume
Another criterion you could use for judging a crypto-currency exchange is its volume of trading. Although it might seem unusual to a miner or a person who just wants to buy some crypto out of curiosity, it is a very important part of any platform dealing with swaps and exchange.
You can’t afford to trade 20 BTC on a low volume market, after all, as there will be no interest for that. That means your transaction will take longer to process, and if you need to change your crypto fast, that’s just not going to happen.
Transparency
Although there is no faith in the world of crypto, there are ways to ensure that your users can at least be confident with their money that you will not just vanish. Reputation and stability are good ways to go, but the one thing that can trust its users about is how cryptocurrency exchange makes their transactions transparent.
In essence, transparency lets you see what happens to your money once you start using the platform. There’s no secret fees or small print on a straightforward sale, you can see the price for every service and transaction right there and now
