The rise of cryptocurrencies has taken the world by storm. For one, it can allow an investor to have huge profits for a short amount of time. However, the opposite is also true—your investment may also immediately plummet. Still, despite their risky and volatile nature, people are still investing in cryptocurrencies.
Most people believe that potential investors only shun away from investing in cryptocurrency due to its volatile nature. But, the risks inherent within cryptocurrencies may be lessened if you know the basics. After knowing the nature of cryptocurrencies, like how they operate, how they’re traded, and how you can gain money, the next step would be selecting the right crypto exchange platform.
As mentioned, crypto exchanges are platforms that crypto investors use, whether seasoned or beginners, to sell, trade, and buy cryptocurrency, like Bitcoin, Ethereum, Ripple, etc. In addition to selling, trading, and buying the same form of cryptocurrency, you can also exchange one cryptocurrency to another, like Bitcoin to Ripple, by using a crypto exchange platform.
When buying any type of cryptocurrency from these platforms, take note that you can also use fiat currencies, like GBP or USD. With a reliable platform, you can also conveniently convert the cryptocurrency back to your chosen currency. Thus, the right platform shouldn’t give you hassle when it comes to withdrawing your funds. If you’re still undecided on what cryptocurrency to buy or you’re still waiting for the right price, then you can also decide to store it in the platform itself.
The rise of cryptocurrencies also means the rise of crypto exchanges. With this variety, it may be difficult to choose one that suits your needs. To help you out, here are some tips you need to keep in mind when you choose the right crypto exchange for you:
Unfortunately, crypto exchanges don’t really share the same commitment towards securing your cryptocurrencies or fiat dollars. This means that you may stumble upon plenty of incompetent platforms. Choosing these types of platforms may only expose you to scammers and frauds.
Since you’re investing your hard-earned money, regardless of the amount, you want to ensure that they’ll remain safe and secure in the platform. Also, read reviews in third-party forums and blogs about your chosen crypto exchange so you can gauge its authenticity.
Essentially, there are three types of crypto exchange platforms you can choose from: brokers, trading platforms, and P2P (peer to peer) exchanges. To help you make the right decision, here’s a brief definition of each of the said platforms:
Research beforehand if a crypto exchange requires you to use bank transfer, PayPal, or credit or debit card. Some platforms may only even allow purchasing using a cryptocurrency. If you’re just starting out, you want a platform that offers you convenience when it comes to buying cryptocurrencies. Hence, find one that accepts bank transfers, or credit or debit cards. This way, you can easily exchange your fiat currency for a cryptocurrency of your choice.
In addition to knowing the method of purchase, it’s also important that you know the duration of the transaction. Some platforms will complete your transaction for a couple of days. But, there are some that’ll immediately complete the transaction the moment you deposit your fiat currency. As a beginner, it’s preferable to choose the latter.
Regardless if you’re already a veteran crypto investor or just starting, you want a platform that has a good user interface. By good user interface, this means the platform should have navigable pages and an appealing design.
Fortunately, this shouldn’t be a problem since platforms, especially reputable ones, are always constantly updating their user interface so they can accommodate both existing and new users. This is especially true since users would most likely recommend a platform that has a great user interface, increasing the platform’s users, which means more profit for them.
In addition to having a good user interface, it’s best if the platform you’ve chosen also has an app version. By having one, you can sell your coins on the go, which is important, given the volatile nature of cryptocurrency. Surely, you don’t want to reach out to a laptop or desktop computer just so you can sell your Bitcoins when their price suddenly drops.
Even if you’ve found a platform that has a nice user interface or has received a good review, it would be futile if this platform can’t operate within your geographical location. Thus, before investing your hard-earned money, it’s important that you double-check if the platform abides by your local laws and regulations.
This is important since even though cryptocurrency is rising in popularity, there are still plenty of countries that aren’t accepting digital coins.
As mentioned earlier, there are plenty of crypto exchange platforms available. Hopefully, with this guide, you may be able to narrow down your options. But, at the end of the day, the features and convenience that a crypto exchange may bring will ultimately boil down to your decision. Hence, choose a platform that you’re most comfortable with. And, don’t forget to check if that platform can operate in your country.
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