The world economic climate is rapidly changing, and there is ever increasing demand for decentralized finance. Cryptocurrencies have become new investment vehicles that offer significant gains to investors in a short-time period. A cryptocurrency is a form of digital money that is traded on a cryptocurrency exchange. If you are interested in the price development of cryptocurrencies be sure to check crypto heatmap.
If you want to invest in crypto-assets, you need to look for the right cryptocurrency exchange. Here are five essential factors to check when choosing the right cryptocurrency exchange.
- Availability in Your Country
According to the latest survey, there are around 200 crypto exchanges active around the world. You might feel elated by looking at the wider choice available, but your happiness might be short-lived. The reason is, not every country allows cryptocurrency trading. Several regulations forbid cryptocurrency exchanges to accept investment in specific currencies.
As per the latest FTX review, cryptocurrency exchanges based in Australia accept USD, NZD, AUD deposits. Some exchanges don’t allow investors from countries that forbid crypto asset investment. For example, if New Zealand has laws forbidding its citizens from cryptocurrency investment, the exchange will not accept New Zealand residents’ deposits though it accepts NZD deposits.
- Trading Fees
Every trader is expected to pay a specific fee for the crypto asset trading done on the platform. The trading fees are not uniform. Some exchanges levy more fees, while some ask for fewer fees. Hence, the trading fees are an essential factor to consider carefully.
According to the best FTX review, though initially, the fees might look smaller, they could add to sizable portions as you trade on the platform. It is particularly true for short-sellers who do not hold crypto assets for a more extended period. Many cryptocurrencies also have hidden fees like the spread fee, which can go high as 5.2%. The spread fee is added to the trade fee for every transaction that can dent your profits.
- Available Currencies
As per the latest data (Apr 2020), around 5392 cryptocurrencies exist with a $201 billion market capitalization. Most exchanges allow you to buy top cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin, and many more. Before you register on any cryptocurrency exchange, it is always good to know the number of cryptocurrencies available for trading.
According to crypto experts, there are several lesser-known currencies like DxChain token, Zcash, and Basic attention token that are likely to register explosive growth in coming years. As per leading investors, you can earn huge by investing in lesser-known coins as they are available for a fractional price compared to popular crypto coins like Ethereum and Bitcoin.
If the marker forecasts hold, you will see your investment rise significantly in the near future.
- Reputation
The web is full of stories of online frauds. Since the popularity of cryptocurrencies as an investment vehicle is rising, many fraudsters are ready with a plan to dupe investors. Since cryptocurrency is not a regulated market like the stock market or equity market, it is hard to determine what is legit and not.
Most fraudsters trick people by mentioning low trading fees and several trading features that make crypto asset trading easy. You should avoid falling for low trading fees and consider the exchange’s history and reputation before becoming a part of it.
- Security
Technology is always evolving, and so are the threats. Earlier blockchain was considered unhackable, but that is not true. You should know about threats lingering over cryptocurrency trade to make a wise decision. The 51 attack on the blockchain is one of the biggest threats where a group of miners has control over 51% of the blockchain network. Other threats include crypto-assets theft, identity theft, and hacking accounts.
Leading crypto exchanges employ various security measures to keep the crypto assets and investor account safe. Some of the noteworthy safety measures include:
- Cold storage where 90% of crypto assets are stored offline
- Multi-factor authentication for accessing your digital wallets
- Verified investors
Today many markets have reached their saturation points, and people are looking for new investment destinations. Blockchain is a relatively new technology allowing you to trade in various crypto assets.
With the right cryptocurrency exchange, you can expect transparency in the trade and heave a sigh of relief knowing your crypto-assets are safe. The essential factors discussed above will help you choose the best crypto trading platform to buy and sell cryptocurrency.