5 Crucial Factors When Deciding on a Cryptocurrency Exchange

The world has a financial debt since 2018 that is undeniably climbing up to this date—especially when the COVID-19 hit us. Bitcoin and blockchain technology might help to solve this global problem. 

It is now the right time to invest in something digital, which is the cryptocurrency opportunities.

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However, before jumping into any cryptocurrency exchange, there are few factors to consider. Here are a few of them:

  1. The Fees You Need to Pay

When choosing the right cryptocurrency, you might think that the higher the price, the better. That is not true all the time.

If you are an investor in a short-term period, the trading fees could add up until it’s too hard to manage. Day traders can also be a victim of higher trading fees.

Another thing to consider is the spread fee. How much spread fee are you willing to pay? It can be high or higher as 5.2%, and it also adds up in time. You should also check hidden charges.

  • The Credibility

When everything goes online and digital, any frauds, security breaches, and thefts are likely to happen.

So, to see if it’s worth the risk, research the exchange’s name in Google, then see if there were some history of scams or security breaches.

Choose the one that is safe and tested by other users. If you find interesting news about the exchange, don’t hesitate to open and read it.

A hardware wallet is essential to keep your possessions and assets from your exchange. It is not wise to keep them in your exchange for too long since hackers might get into your account.

  • See the Cryptocurrency’s Availability 

Remember that when you enter the exchange, it should not be against your local fiat currency. Before joining, you can check on its website to see the accepted currencies to buy, sell, and trade efficiently.

  • See the Cryptocurrency’s Availability in Your Country

Since not all cryptocurrencies are widely accepted in every country, you should see if the exchange you choose has comprehensive support for different currency types. Why is that?

Sometimes, you can’t use your local fiat currency as an investor on a particular exchange based in a different country.

It is essential to make sure of everything and contact the exchange’s help desk to see the accepted currencies and whether it supports deposits from your country or not.

  • High Security 

You can check the exchange’s security by seeing the overall website’s SSL, two-factor authentication, cold storage wallets, and multi-signature authorization for withdrawals.

Final Words

Investing in an exchange can be daunting and makes people skeptical about its security and legitimacy. That’s why considering these five factors will lead you to the right path in buying and selling cryptocurrencies.

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