Cryptos are becoming a new way of transaction. It started as a cool project, became an investment opportunity, and now, it’s becoming an actual currency used for buying stuff. If you are also into crypto trading, you might need a good platform to exchange your cryptos on. But, how do you define "good" in terms of crypto exchange platform? Let’s see...
What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is a type of business in which you can exchange your digital currency with another digital currency or fiat money. In simple words, you can transform one asset into the other. This service is provided by various platforms. The cryptocurrency market is decentralized; that is, it is not authorized by any government agency. It runs basically on the various networks between the sellers and buyers through computers. The records are digital and stored by using blockchain.
Cryptocurrency Exchange Platform
It is a platform that allows users to trade and sell digital assets. It acts as an intermediate between the buyer and the seller. All the data is encrypted and is securely shared between the users. Various crypto traders and buyers can be found easily on these platforms. As of 2020, there are about 200 trading platforms. With hundreds of options, you need an exchange platform that should be easily accessible and secured. One such trustable platform is CoinsIO, which provides full security to the users to exchange their cryptos.
Factors to Look For In A Cryptocurrency Exchange Platform
For investing and trading cryptocurrencies, you need to have a detailed analysis of the platform that you are going to be on. Have a note on some of the most important features that you shouldn’t miss out on. You need to be aware to enhance your trading experience on these cryptocurrency exchange platforms.
1. Authenticity and Security
It is very crucial to search and select a trustworthy and secure platform. The recent hacking of some platforms puts a question mark on their security. This enforces the investors and the traders to transfer and switch for a safer and well-encrypted security protocol.
The pump and dump schemes of nowadays currencies shift the attention on exchanges and hence prevent future fraud. According to recent security updates, you need to go for a two-factor authentication exchange (2FA). Further, have a check on the type of 2FA. Generally, Google and Authy authenticator are common and more reliable.
2. User Interface
If you are a cryptocurrency user, one of the major things to note is the functionality and use of a user interface. If you are a new user, you should look for better accessibility and a good knowledge-based customer support service. If you want to keep your identity anonymous, then a decentralized exchange is a good option. For much better and security features, you should go for a centralized exchange.
3. Transaction Fees
One of the most important features to look for in an exchange service is the transaction fees charged. They should be comparable and reasonable. Charges vary for the different cryptocurrencies. Generally, one percent per transaction is the standard charge. It may go lower or higher depending on the amount of withdrawal. Also, while exchanging the cryptocurrencies from a debit card or credit card, the convenience charge is quite high so have a note on that.
Trading and exchange programs can be analyzed by the number of customers using their services over a period of time. In addition to that, the amount that is traded plays a significant role too. However, checking the volume of a trading platform can be a complicated task as many fake claims are made by these platforms. One simple thing that you can do is by noting down the amount and the order booking of the highest price levels. This plays an important role if you are a trader who is likely to sell more than a hundred BTC.
In the cryptocurrency world, it is very important that the platform you choose is well reputed and has a good exchange rate, since money exchange platforms have been hacked and scams are common. The idea of looking back on its work is a good one. Try to search for the past scams along with the different exchanges of your crypto exchange platform. One very good method will be following social media and see if any user has posted any complaint against the platform. Having a good knowledge and awareness of the terms and conditions will also help you avoid any security issues in the future.
6. Selection of the Asset
Bitcoins, Litecoin and Ethereum are very popular, and hence these are some of the top digital assets provided by most crypto trading platforms. But various other smaller tokens may not be available. So, have a check on the type of assets provided by your exchange platform.
7. Earning Opportunity
Apart from the above mentioned essential features, some good crypto exchange platforms like CoinsIO provide an earning opportunity to the users. You just have to do some simple tasks in order to earn Bitcoin or other cryptos.
Cryptocurrencies are reaching a new height these days. They are not just for investment anymore. They have become a means of transaction. However, exchanging cryptos is not an easy task. Be aware of the hackers and scammers. Find the best crypto exchange platform for your transaction.