5 Things to Look Out for in a Cryptocurrency Exchange Platform

5 Things to Look Out for in a Cryptocurrency Exchange Platform

Investing in crypto-money is the new fad as more and more individuals are keen on learning how to get into the fold and make money. With each passing day, the popularity of digital currency surges, while crypto-exchanges sprout to meet the ever-rising demand for their services. As expected, unscrupulous dealers are in the business to make a quick buck from the unsuspecting public and make a hasty exit. We don’t want you to end up a victim of a money swindling scheme. Thus we will guide you on how to determine the best cryptocurrency exchange platform. By the close of this article, you’ll have gained a better understanding of how to choose a crypto-money exchange that best suits your investment goals.

The following are the 5 things to look out for in a crypto-money exchange platform.

1. Location

It’s vital to know the location of your preferred platform because every country or state has its policies and laws governing the purchase of crypto-money. Ideally, it’s in your best interest to select an exchange platform based in your home country.

The main reason behind choosing a home-based exchange platform is that transactions are conducted in your home currency. In the case where you wish to do business with an exchange platform in a far away country, ensure you scrutinize their terms and conditions. 

2. Forms of payment

Before committing to an exchange, it’s imperative that you consider the types payment they accept. It makes no sense spending time on an exchange only to find out later they don’t accept your preferred method at checkout. The majority of crypto-exchanges accept leading credit cards, PayPal, cash or wire transfers.

In cases where you wish to guard your privacy, we recommend the use of cash. However, if anonymity isn’t our concern, a card transaction serves you fine. Note that a payment type may come with its own set of charges. For instance, some exchanges may charge a fee if you pay via credit card while a cash payment or wire transfer may be free.

3. Volume requirements and exchange fees

While we fleetingly mentioned the concept of exchange fees, it’s important to bring up the issue again because exchange fees fluctuate from minute to minute as determined by variation in rates and market shifts. Costs may also differ between exchanges.

If you happen to be working with exchange X but desire to work with exchange Y, we suggest that you review their cost structure as it may differ from exchange X. In addition to scrutinizing the rates and exchange fees, you may want to understand the volume obligations.

Some exchanges demand that you buy a set minimum amount while others don’t have such stipulations.

4. How fast you receive your cryptocurrency after purchase

If your plan entails investing a great deal of your money into the crypto-asset market, you’d want to know the time it takes before your currency appears. Another thing to look out for when picking out an exchange platform is the ‘locked in pricing’ concept.

The locked in price idea means the price you agree on during purchase delivers the agreed number of coins even if several days pass by as the purchaser waits for their delivery. Some exchange platforms charge a different rate if the price on the delivery date supersedes the price on the date of purchase.

5. Reputation

If you know of anyone who trades cryptocurrency, seek their opinion on the best available exchanges. Also, do some research to uncover cases of sham transactions.  

There’s a lot to know about digital currency. To learn more about crypto-assets visit the Crypto Head website.

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