Is Your Crypto Exchange Safe? How to Choose the One You Can Trust
The popularity of crypto continues to gain momentum. Today, only the laziest person didn't hear about digital gold. As you know, virtual assets go hand in hand with violent swings in prices. You can make good money on the growth and fall of the exchange rate, which is exactly what modern traders do. To make it happen, there are a huge number of crypto exchanges. Each of them is unique in its characteristics. But how to choose one from the various variants and numerous alternatives ? Let's figure it out together.
It should be modern, accessible and functional. Without understanding the tools of the trading platform, a user can make a technical error that will lead to the loss of funds. This is particularly relevant, and particularly important, in the case of sharp swings in the price. Remember, you need to make quick decisions to, for example, sell a cheaper asset or buy it.
Wide Selection of Coins
When searching for a platform, it's important to take into account the number of trading pairs, as well as types of crypto represented on it. On the one hand, the more digital assets, the more opportunities there are for trading and investing. On the other hand, sites can add tokens of noname projects — this is one of the ways to earn money. Accordingly, if a company lists dubious coins, it exposes the user to the risk of investing in a token issued by scammers.
In addition to the interface and the list of cryptocurrencies, you should study the tools that the exchange offers. Will you have an opportunity to place a stop loss? This tool allows you to buy or sell a cryptocurrency if its price reaches a certain level.
Staking is another useful instrument. Some exchanges allow you to receive passive income for storing coins. Its size can vary from 1% to 15% and exceed this value. However, bear in mind that making a profit with this method is not guaranteed. A user who holds a cryptocurrency for the sake of staking, even after receiving 15% as a reward, can lose on the fall of its rate.
It's no secret that the lion's share of the platform's revenue is the commission charged from traders for making transactions. If there is not enough of it, this increases the risk of the exchange going bankrupt. Moreover, trading will be problematic. Even if the stated rate is higher than on other exchanges — you simply can not sell or buy this or that asset.
You should pay special attention to the terms of registration on the exchange. They can contain a lot of important details. For example, a company may not provide services to residents of your country. Or, trading on the exchange will be available only after passing the KYC verification. The same condition is often required for the withdrawal of funds.
The more methods, the better. It will be more convenient for you when using the exchange. In addition, the number of options for withdrawing and depositing money carries a thousand clues. Usually, popular payment systems do not deal with trading platforms that conduct illegal activities.
Reputation and Reliability
Check the age and reputation of the website. Were there any break-ins on it? If so, did the users receive compensation? Unfortunately, the market is now full of dishonest players who deceive and manipulate users. In order not to put yourself in an awkward situation, read the feedback from other users.
We take no pleasure in saying this, but** Equite** alsohad to face a stereotypically dishonest website. We'll talk about this in our next article. We hope that our tips will help you choose a decent exchange to work with. Be vigilant and be safe.