Choosing a suitable exchange market for your cryptocurrency trading is an essential decision you are going to be making today! Dealing with online marketplaces for trading in Bitcoins and Ethers is not a matter of some minutes, but it is a matter of lifetime, especially when your hard-earned money is involved. With cryptocurrency exchange marketplaces emerging globally, every single day, it is important that you are choosing the best one for yourself.
People often confuse cryptocurrency exchange markets and stock markets to be similar. They might appear to be similar on the surface but their fundamentals are not. Just like in the case of a stock market in the beginning, you are going to be required to sign up to your online trading platform with your debit/credit cards and would have to rely on a middle man do execute the transactions on your behalf. However, in case of crypto markets, you wouldn’t have to rely on third parties to perform transactions on your behalf. The platform for cryptocurrency exchange is a decentralised one, with the requirement of no middleman at all.
If a cryptocurrency exchange is not similar to a stock market exchange, then how do we precisely define a crypto exchange?
A cryptocurrency exchange is a digital market, developed in order to trade in different forms of cryptocurrencies. There are over 190 exchanges currently, and each has their own different exchange rate. These rates are determined independently, not in accordance with each other.
When it comes to choosing the best one for you, you have to consider innumerable factors.
- If you listen to experts before making any decision, you should want to choose an exchange marketplace based out of the place you are already residing at. It is going to be a wise decision you would be making in order to protect yourself and your money. If you are unable to find a proper address for the exchange company near you, it should come as a red flag. If there occurs any problem in the future, not being able to track the right jurisdiction is going to be a problem if you are looking to sue the exchange.
- Check into all policies before making a decision. Not all crypto exchanges are going to accept your currency, or even US dollars. You need to find an exchange where you can deal in your currency among other policies. The regulatory policies of an exchange should be uniformly followed by all, and this includes following a uniform payment method. Certain regulatory standards, prescribed by authorities must be followed by the exchanges you are looking to invest with.
- The exchange you are trying to get involved with must be reputed enough. You wouldn’t want to receive the news of a hack regarding the exchange you are dealing with. These problems would wreak havoc in your life otherwise. Hacking these online exchanges is a very common phenomenon, take Bitfinex for example. You need to be wise enough to understand where your money is going, always opt for a reputed one!
- Ensure the exchange you are looking forward to dealing with offers you security advantages. According to the experts, every exchange which is actually secure for the common people, is following Anti-Money Laundering procedures and KYC procedures. If the exchange you are looking forward to working with is following the same procedures, you can be sure there is enough security for you and your money. If things go south, you wouldn’t have to face difficulties in getting your money back.
- Most cryptocurrency exchange markets you deal with would make you pay a transaction rate. This rate could be as high as 4 per cent and as low as 0.2 per cent. You would want to pick an exchange with a higher volume, which is going to ensure a higher price accuracy. Some exchanges with low volatility do not process the transactions immediately, rather over a couple of hours. These couple of hours could make you lose or gain thousands of dollars. Choose an exchange wisely!