Becoming a good crypto investor or trader is not an easy task. The entire industry is complex, and it requires in-depth analysis. It is not the point to invest in Bitcoin just because its price is jumping. Despite that, counting only on luck is another mistake people make. Luck does not have anything in common with crypto success.
There are three things people should have in mind before they start their journey. The first one is to get familiar with all cryptos that exist in the world and analyze their features. Despite that, people should check out which available tools can improve their performances. Some tools use reliable algorithms and provide the users with useful analytics. If that seems like a good option for you, we recommend you click here. It is an example of a trading app that you should use in the future. In that way, you will manage to improve your performances and develop crypto trading strategies.
The third thing may be the essential one. People need to choose the digital currency exchange that will meet their requirements. Indeed, there are many of them online that look similar or identical. However, it would be unfair to say they all provide the same quality of services. That is the reason why we would like to analyze how to choose a crypto exchange. The good news is that people need to go through only a few stages to reach their goals. Let’s find out those stages together!
Determine the Right Type of Crypto Exchange
There is no just one type of exchange people can find in the market. The first option people have is peer-to-peer exchanges. This type of exchange is an excellent option for those that are looking for privacy. However, in that case, each individual is responsible for his security and the security of his funds. In some cases, it may happen the platform will act as an arbitrator when the cases of disputes occur. However, that is the only thing they do.
On the other hand, full trading platforms are some king of the virtual real estate market. They connect a big number of people that exchange the platforms among themselves. The platform itself offers some specific services such as customizable graphs, margin trading, etc. However, beginners often do not need these features at all.
The third type available to people is brokerage exchanges. These exchanges allow people to sell and buy digital currencies directly from the platform. In most cases, people will need to provide private data to verify their accounts.
Check the Functionality of Exchange
It doesn’t matter how experienced you are. The first thing people need to check if the exchange can complete the transaction they want to make. There is not a universal way of how platforms support the combination of fiat and cryptocurrencies. Some of them do not operate in certain geographical areas. An interesting example of that is some US exchanges that won’t accept transactions from all the states. Because of that, it is better to find out that before starting your journey.
Check the Fees
Fees are different from one place to another. Different fees are good only for a specific type of trader. For instance, let’s imagine that you are a day trader. In that case, you would not want to choose an exchange that comes with high individual transaction fees.
On the other hand, the fees are not going to be the same for deposits and transactions. In some cases, the deposit fees may be low while the transaction fees may be high. Because of that, people should check them all before they make the final decision.
Check the Security
Exchanges ensure that all the transactions are completed quickly. That is probably one of the reasons why digital currencies have experienced popularity growth. However, that also means people should only choose the exchanges that have a high level of security. This part deserves in-depth analysis. Because of that, we would like to highlight all the things people should have in mind.
First of all, the way how people access account needs to be safe. The best exchanges often provide a 2-factor authentication feature. They do that for all the accounts that use their services. Of course, if you decide on an exchange that does not require an account or wallet, that feature becomes irrelevant.
Another factor you should put into consideration is insurance. Indeed, the security of all exchanges is becoming stronger and stronger almost every day. However, thanks to their popularity growth, they become an attractive target for many hackers over time. That is the reason why you need to be sure which types of insurance you have over your funds.
For instance, most professional exchanges carefully follow the regulation of their government. Because of that, they will manage to expand the government-backed deposit insurance to the fiat accounts of their customers. Some exchanges use 3rd party insurance and offer it to their customers. However, something like that people will rarely find.
Check the Reputation of the Exchange
Let’s imagine that you found an exchange that meets your requirements and expectations. The next thing you would probably want to find is social proof that your decision is good. People often use Google to gather some valuable pieces of information. That is the reason why they should check the reputation of the exchange they plan to pick.
There are two options that people have. One place they can gather some pieces of information is mainstream media. On the other hand, they can also visit websites that review all the exchanges. These websites often remain objective until the very end. Because of that, they share pieces of information that can help people make good decisions.
Yet, every individual needs to ensure he is using a reliable source of information. Businesses around the world use different methods to hurt the reputation of their competitors. Because of that, people need to be sure the information they read is not fake. Fake news can only confuse them even more. They can make a bad decision and make a costly mistake later.