There’s no doubt that the topic of cryptocurrencies has boomed in popularity, with every person who hears about it getting quickly interested in the industry.
Crypto has already significantly changed the way people trade and exchange currency, but it's only the beginning. Soon it might just become the primary option for transactions on the internet.
If you’re someone who has read up on crypto and the information surrounding it, you might have heard of crypto exchanges or trading platforms through which people can trade between different cryptocurrencies.
When starting the process of investing in crypto, picking a good trading platform is crucial. So, here are four important things to remember when selecting your platform.
Look Out for Scams
The cryptocurrency world is riddled with scams around every corner you face, and most times, the scammers get what they want. Since crypto is still relatively new and the majority of people aren’t aware of the ongoings in the industry, they become very susceptible to blatant scams and lies.
Some ways you can determine the legitimacy of an exchange platform are the public opinion about it, other users’ experiences with it, and information about them like their physical address. If the company is willing to be transparent about its location and operations, they are more likely to be trustworthy. Plus, if a problem does occur, it would be easier to deal with if there's a physical location.
Do Thorough Research
Reputation and reviews are crucial for crypto exchanges because it defines their past incidents and if they live upto their name. Check client reviews on Google and user opinions on social media platforms. You can also learn a lot about a platform’s reputation through its terms and conditions.
It is typically recommended to use an exchange based on or working under the laws of the country you are in since it is easier to comply with regulatory changes. For instance, if you’re living in Australia, ideally, look for the best crypto trading platform in Australia. Notably, many platforms only support specific countries and don’t operate in others.
Know the Currencies they Deal in
Before you start using the crypto exchange of your choice, figure out which cryptocurrencies they deal with. Assuming you’ve read up on how to choose a profitable currency and picked the one you want to invest in, it would be a bummer to find out the exchange platform doesn’t support it later on.
You also need to understand the difference between crypto-to-crypto and crypto-to-flat exchanges. Basically, crypto-to-crypto platforms only allow you to exchange between cryptocurrency pairs. In contrast, crypto-to-flat exchanges let you trade cryptocurrencies through real-world currencies like dollars, pounds, euros, etc.
Check for Transaction Fees
You might be wondering how the trading platforms make their money by letting you trade with crypto? Most of their profit comes from transactional fees that they collect each time users make a trade.
Some platforms might not make their transactional fees apparent at first, which can cause a lot of problems and drain out your profits if it turns out to be too high. Fortunately, high transactional fees can be avoided if you simply invest some time into research.