Buying From Crypto Exchanges: What you Need to Know

Mar 21, 2019 at 11:15 // PR
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Not only does it let you trade securely, but it can also help you make better coin buying decisions with the help of real-time charts.

We've seen a significant shift on how we do cryptocurrency trading lately and one of the catalysts for that change are crypto exchanges.

Not only does it let you trade securely, but it can also help you make better coin buying decisions with the help of real-time charts. Buying from crypto exchanges isn't as simple as it sounds. It requires careful consideration of which platform works best for you.

Here are some tips to consider when looking choosing cryptocurrency exchanges:

Look at Their History

Know the platform's history and how they got started. It's also good to look at how they've been consistently making improvements on the exchange. Don't be afraid if you see that they've made mistakes. Cryptocurrency exchanges are still relatively at its infancy stage which makes mistakes inevitable.

However, what you need to look at is how they were able to recover from that mistake. This sign tells you if this exchange has your best interest at heart.

Here are two of the most common mistakes you should be aware of:

  • Hacks - The crypto industry has received more than its fair share of hacks. This is primarily due to developers not having enough background on network security when they built the platform. 
  • Indictments - We all know what ugly pictures the media would sometimes paint when talking about cryptocurrencies. Well, sometimes those ugly pictures are real, but just like anything in the world, it isn't perfect. Nobody could control how people use these exchanges.

Take a look at how these chosen platform carry out when these mistakes happen because it can help protect you and your coins in the long run.

Who Runs and Backs the Company

Another telling sign that a crypto exchange is more than capable of handling your account is looking if they're transparent. With an industry who had a rocky beginning, it's those who are open to how and who they are dealing with have the most advantage. Openness builds trust, especially for someone who's new and does not know where to begin. 

You also have to look who are the people backing it up. When you see that leading venture capitalists and investors are backing an exchange, you could be assured that industry experts have at least vetted them and they have a team that’s capable.

Check for Registration

Most government bodies don't treat cryptocurrencies as something that has a value such as paper money. But, it doesn't mean that nobody is regulating cryptos, it's just not at the same level as other trading markets like the stock market.

Some crypto experts actually prefer that it's not regulated. However, being regulated or even being licensed by an organization will help maintain checks and balances and protect investors ultimately.

For example, The New York-based crypto platform, Gemini Exchange made a considerable effort to secure a BitLicense. This is because they wanted to target Wall Street businesses and to have a license to show which can build more trust among users.

While it's not always possible for crypto exchanges to get a BitLicense because of the costs it involves, they can opt to get registered with other government agencies.

Coin Pairs Availability

There are a lot of platforms that offer only a handful of coins such as the following:

  • BTC (Bitcoin)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (ATC)

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These coins are mainly used to buy other altcoins. Some local exchanges will only offer a handful for the sole purpose of turning your fiat into crypto which you can use on other exchanges to buy other coins. Select a platform that provides a broader option when it comes to coin offerings as it gives you more choices.

Security

This is the most important consideration when choosing a crypto exchange. The level of security the platform uses should be at least transparent to its users. Below are some of the best practices when talking about safety in the crypto world:

  • Cold storage - This just means that the users' coins are kept offline safe from the prying eyes of hackers.
  • 2-factor authentication - This will put an extra layer of security on your account.
  • Verification and encryption - All emails sent to your account should be encrypted, and you should verify all transactions made on your account.

It's important to note that not all exchanges will have this written all over their website but it is important to ask them if they have at least the three things mentioned above.

Customer Support

Cryptocurrency trading is a fast-paced world and sometimes losing a dollar to a couple of thousands will depend on how fast a customer representative can attend to your concern.

Here are the things to consider when looking at customer support:

  • Do they have a detailed knowledge base
  • Do they have an email address you can contact
  • Is there a customer support hotline that you can reach anytime
  • How responsive are they on their social media pages

Not all exchanges can invest in excellent customer support, but their customer support option should be available to all users no matter what the circumstance is. 

Conclusion

Diving into the world of cryptocurrencies can be scary at first. The best way to overcome that fear is to find a platform that you can trust and who can guide you in your coin trading journey.   

Disclaimer. This press release is paid and provided by a third-party source. This press release is for informational purposes only and should not be viewed as an endorsement by CoinIdol. We take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy. Readers should do their own research before investing funds in any company.