Five Things to Look for In a Crypto Exchange App
So, are you thinking about diving into the world of Cryptocurrency trading and investing? Then, it becomes imperative for you to choose the right exchange!
So, are you thinking about diving into the world of Cryptocurrency trading and investing? It’s an excellent decision if I’m being honest. After all, the price of Crypto has reached the lowest low recently. So, as per how the market works, it’ll certainly go up from now on.
But how do you invest here, though?
I mean, it won’t be possible to dump your money in this segment in the traditional way, right? Yes, you have, indeed, guessed it correctly. If you want to invest in Crypto, you must employ a specific medium for that, namely a Crypto exchange platform. Click here to read more.
Keep reading to know how you should choose one.
What Makes a Good Crypto Exchange?
When it comes to choosing a Crypto exchange, you should always look for the choice they’ve got for you. Always opt for the one that comes with a greater variety of options.
Apart from that, it would be best if you also looked for the following –
1: The Security Department.
Due to the black market dependency and lack of government regulation, Crypto trading might seem a little sketchy to some people. Hence, if you want to be on the safer side, make sure to opt for an exchange that has a strong security solution. For example –
- A two-factor authentication system can help you secure your profile even more while making it impossible for everyone else to hack into it.
- A cold storage feature can help you store your Cryptocurrency in an offline format. It will ensure that your account is protected against hacking and theft.
Unfortunately, for many people, Cryptocurrency is still not available to trade in their countries due to certain regulations. Therefore, they won’t be able to use the Crypto exchanges as well.
And if they do, they might get banned from using any kind of digital platform, depending on the rules of the nation. Thus, before you use something, it’ll be best to check if Crypto can be traded in your country. Also, check for the availability of the exchange before using it.
The fees asked by a Crypto exchange will always be different from the other. And it may vary even more depending on the country you are living in right now.
I would suggest against choosing the cheapest option available in the market. However, make sure to opt for something that won’t hurt your budget in a long-term scenario.
4: Buying-Trading Feature.
To fund your Crypto exchange account and purchase Cryptocurrency, you’ll need to connect a bank account with it. However, only a few Crypto exchanges come with this feature currently.
Therefore, if you’re looking for a convenient experience, be sure to choose something that has the aforesaid feature. Also, don’t forget to check if it’s allowing you to integrate your credit or debit card or not. Some platforms might also allow Crypto-to-Crypto trades.
5: Rewards or Interest.
Like a conventional bank account, you can get a specific amount of interest or reward from a Crypto exchange platform as well. It’s their way of encouraging you to keep using their app.
I have seen some platforms that yield around 10% on some specific coins.
However, unlike a traditional bank account, your holding will not be FDIC-insured when you are using a Crypto-trading platform.
Thus, if the module somehow stops working, gets banned, or fails – there’s no guarantee that you’ll get your investment back. All of them will be lost forever.
The Final Say!
Choosing a perfect and suitable Crypto exchange can be quite challenging for anyone. Hence, it’s always best to do as much research as possible before making a decision. Additionally, even if you have chosen the right option, you should still be wary about its usage.
For instance, no matter what happens, you should never lose your passcode. If you do, you’ll not be able to access your account anymore, as there’s no other way to get the password back.
Also, make sure to remember the type of two-step verification you have chosen in your case. It should not be something that you can’t remember for a long time.