Cryptocurrency has made its mark as one of the most popular investment assets. People used not to believe it would stick around. But now that the total market cap for cryptocurrency is $811 billion, that’s no longer the case. But something being popular doesn’t mean you shouldn’t be careful and not invest your money wisely. Are you having trouble picking a crypto exchange to trust? Keep reading to learn how to find an exchange that will make trading with cryptocurrencies easy.
Pick a Local Exchange
You can’t use every crypto exchange out there. The cryptocurrency industry now has regulations that govern how people use the markets. If an exchange wants to operate in your country, it must follow the rules. Be sure to check if an exchange you see has permission to take you on as a customer. Exchanges should tell you which countries are permitted to sign up for accounts.
Examine the Trading Fees
You won’t have the normal cryptocurrency trading fees when you use an exchange. That’s because the exchange handles the books instead of transferring your holdings between different wallets when trading. But that doesn’t mean you have zero fees when trading on a platform. Depending on your crypto trading strategy when you buy and sell cryptocurrency, fees may be a big issue if you want to make intelligent trading decisions. Look at the fees offered by each platform to find the best deal.
Look for Insurance
Unfortunately, cryptocurrency doesn’t have the government’s backing like traditional investments. That means you’re out of luck if an exchange suffers from problems and loses your holdings.
However, that doesn’t mean you don’t have options. Some companies offer insurance by default to ease concerns from investors. In some cases, you can purchase additional insurance if you want more coverage.
Don’t Take Security Lightly
Since you’re trusting sensitive information with your chosen crypto exchange, you can’t take security lightly. Any reputable exchange will use the best security procedures to protect its customers’ data and holdings.
But some exchanges don’t take security seriously. They cut corners and expose themselves to hackers. Learn about how crypto exchange security works to find a secure platform.
Examine the Number of Assets
Finding an exchange that has all the assets you want is critical. Most will have the biggest cryptocurrencies on the market. But the smaller cryptocurrencies can sometimes be harder to find. Be sure to examine the type of cryptocurrency on an exchange before signing up. You want to stick with the platforms that have most of what you want. You can avoid signing up for too many platforms this way and avoid spreading yourself too thin.
Picking a Crypto Exchange Takes Work
As mainstream as cryptocurrency has become, you’re still taking a risk when trading. Cryptocurrency is a volatile asset, so you must make your trades carefully. That makes picking a crypto exchange an even more critical decision. Remember the guidelines above to ensure you find a reputable crypto exchange that will help you make a profit on the market. Head back to the blog if you’re interested in more financial advice that will help you set yourself up in life.