3 Vital Factors To Consider While Choosing Crypto Exchange

Cryptocurrency took its baby steps back in 2009 in the form of Bitcoin. Since then, that little baby has evolved into a $2.6 trillion industry. With such massive success, cryptocurrency investment has become a household name, and so has the crypto exchange. Anyone can tell you the name of at least one popular crypto exchange that millions of investors and traders use. 

If you plan to invest in crypto coins, you should first understand what a crypto exchange is. It is a platform to buy and sell crypto coins. These exchanges offer secure transactions and allow the trading of more than 200 coins. But how do you choose the best exchange from so many options? Don’t worry; here are three vital factors to consider when choosing a crypto exchange. 

1. Security 

Security is the most critical aspect you should be looking for in a crypto exchange. Despite its widespread popularity, the crypto market is full of risks. There are plenty of scammers who want to gain illegitimate access to your account or crypto wallet. If they can access your account, they can do whatever they please. Therefore, you must look for the security features the exchange offers to protect your assets. 

Every popular crypto exchange has two-factor authentication that offers multilayered security. The user receives a unique code on their personal contact, which they must enter in the login window to log into the account securely. You can also check whether there’s an option for cold storage to store your assets offline. 

2. Background

You’d be surprised to know that there are more than 600 crypto exchanges that offer investing and trading options. On top of that, the news of exchanges getting shut down due to malicious activities has become mainstream. Therefore you should do a background check before choosing the right exchange.

One way you verify the company’s background and history is by reading about the founders. The educational and corporate background will help you understand more about them. You should also read about the research they have published in the crypto industry and what are their plans with the company. You can be sure of the platform’s authenticity. Having no online presence of the founders or a faceless company can be a red flag.

3. Fees

The platform is often free to use, and you can also download their app for free. But it doesn’t mean you can trade coins on it without any charges. There are different types of fees incurred by the exchange. These fees can vary based on the pricing policy of the company and the number of transactions you perform. Most exchanges charge 1% per transaction, which can fluctuate based on the trading volume. 

You should also check the fees levied on the withdrawal. Some exchanges charge hefty withdrawal fees on popular altcoins. Deposit fees are another aspect you should be concerned about. Though all exchanges allow depositing money with debit and credit cards, they might charge deposit fees. 

Choosing the right crypto exchange is essential in investments and trading. Choosing a secure and user-friendly platform will make it easier for you to do transactions and avoid getting scammed by hackers and fraudsters.

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