The rapid growth of cryptocurrency and its increased adoption has made a lot of people find themselves asking questions like what platform can they use to trade these cryptocurrencies, how authentic and secure is the platform, the reputation of the platform, exchange rate and so on. Now, there are a lot of platforms out there. However, before you start trading with one, there are certain things you should consider. Here are some basic things to consider when choosing an exchange platform:
Validity: The first thing that should come to mind when choosing an exchange platform to start trading is its geographical location and restrictions. You should research to validate whether the platform is legal in your country, if it has secured the proper licensing and certification, as well as your country’s respective laws towards crypto exchanges and cryptocurrencies.
Reputation: You can do this by checking the reviews of others to know if the exchange is secured, if it has been previously hacked, or if a lot of people have complained about it and so on. Social media is generally a good source for this information.
Safety: It is of paramount importance that you research to ensure you choose a legitimate and secure exchange. Exchanges that require some sort of ID verification from you are typically safer and secure than anonymous exchanges. Also, search for exchanges that have a 2factor authenticator such as Google Authenticator or SMS, anonymous sign-ups, and complex captchas. Naijacrypto is an exchange with such safety features.
Fee Structure and Exchange Rates: These vary across various exchanges. Some exchanges have a very high exchange rate. Some exchanges offer a discounted fee. This usually occurs when their tokens are used to complete a transaction. Apart from the transaction fee charged by exchanges, some still charge hidden fees. So, you should do a careful research to whatever extent possible and preferably on 3 or more exchanges because ultimately, bad choices could potentially jeopardize your finances.
Method of Purchase: The methods of purchasing cryptocurrency vary between platforms. Some exchanges require deposits by wire transfer, some use a payment gateway, some accept credit and debit cards, and others solely use cryptocurrency for trades. If you do not have any cryptocurrency before joining an exchange, you must choose a platform that accepts fiat currency so that you may enter the market.
User Interface and Experience: Understanding the user interface and functionalities of exchanges is imperative when choosing an exchange. Whether you are a professional cryptocurrency trader or beginner, an intuitive interface and good user experience aid user actions on the exchange in terms of quickly assessing information and executing trades efficiently.
In conclusion, exchanges are not the same. They vary in terms of building security precautions, regulating users, building their network, and building a user experience.
