Cryptocurrency – what you should know before choosing one – Latest News, Breaking News, Top News Headlines
Anyone who has been in the cryptocurrency environment for years knows how important an exchange is. Everyone, taking their first steps in Bitcoin or other currencies, was forced, first to open an account on an exchange platform. This is one of the most sensitive parts of committing to these assets.
An exchange allows users to have access to their first cryptocurrencies. From there you can sell them, lend them and make use of multiple tools offered by the Blockchain to obtain personal gains. At the same time, there is the option of saving long-term savings and so on.
Simply put, a cryptocurrency exchange or exchange can be compared to the headquarters of an army. From there, the user prepares his strategies, studies options, advances or withdraws. All this indicates that when choosing one, you must evaluate its advantages and disadvantages.
How to choose the right cryptocurrency exchange?
Making it clear that, to enter the world of cryptocurrencies, you need to have an account in an exchange, it only remains to know which one to choose. There are a multitude of these platforms, probably several hundred companies dedicated to trading digital currencies, why not just choose one without so much drama?
Before making the choice, the person must take into account that he is entrusting his money to a firm. In simple words, you are giving away, not only your money, but also private information. If you do not choose correctly, your personal data could end up in the wrong hands and your money could be lost.
For this reason, it is important to take some time to research and make sure that the platform you choose has the highest possible security standards. Quick access to information through Google, allows you to know the history of the exchange, what its users think, legal status, if it has been hacked, among others.
On the other hand, it is important that it has a variety of options. Some platforms are secure, but from them you cannot access the fascinating world of Decentralized Finance (DeFi), just to take one example.
Steps to take into account for the election
If what is raised above leaves doubt (and some concern) in the reader, then it is a good sign. It is already known that choosing a cryptocurrency exchange at random is leaving personal safety and money to chance, so it is a very serious matter.
Now, if it is something that complex, there should be a series of steps to guide you on the path of choice. Here are some recommendations, based on Binance’s recent guide on choosing exchange platforms.
An important fact is that cryptocurrencies themselves, due to their encrypted nature that shields them on the Blockchain, are difficult to steal. Therefore, hackers turn their attention to exchanges. By accessing people’s computers, they can steal their keys.
The latter means that a large part of the security of the funds stored on exchange platforms depends on the person. Thus, good security hygiene can be sufficient to protect against hackers. Here are the steps to follow:
The recommendations in this article were mostly taken from Binance’s post on the steps to choose a cryptocurrency exchange.
Security
Cryptocurrencies are safe to the same extent that they are protected. Therefore, it is vitally important to choose a cryptocurrency exchange that you can trust. To protect personal data and third party funds with the latest security standards.
The security of the funds must be guaranteed by a dedicated team with high levels of transparency. Threats against funds are not always external, but also internal, so there must be a 24/7 team attentive to the movements of funds and capable of providing immediate responses.
Products and services
Along with security, it should be evaluated that the exchange offers a wide variety of exchange options and forms of deposit and withdrawal. Also, multiple wallets to store different cryptocurrencies. To this must be added the amount of financial products to complete an optimal experience.
These products include access to the aforementioned DeFi, as well as pair trading. That is, multiple options to open the doors to great profit opportunities.
Commissions and profitability
Behind a cryptocurrency exchange, from the point of view of both users and owners, there is only one story, making a profit. Transaction fees are the way the platform gets its share and trading through the use of the products is the source of the users.
In that sense, it should be evaluated that transaction fees are low so that they do not affect profits. Some platforms charge to enter and withdraw money, which could be counterproductive.
Reputation and track record
Knowing someone is knowing their past. This also applies to cryptocurrency exchange platforms. Therefore, if the candidate exchange is secure and meets all the parameters mentioned above, the next step is to verify its reputation.
As already said, through Google and social networks, you can scan the past of the platform. Some have suffered massive robberies in the past, others have had problems with the authorities. It is vitally important to be vigilant at this level.
As seen in these lines, which were primarily based on the aforementioned Binance post, caution should be exercised. No crypto exchange is 100% secure, but neither are banks. The advantage of the former is that much of the security depends on the user.
Personal passwords should never be shared, nor should they be hosted on computers, emails, virtual notes blogs, office documents, etc. They should be written down by hand on paper and kept in safe places. You should talk to the least number of people about the subject and apply the recommendations of the exchanges.
By taking these tips, your money and data will be safe.
Data to take into consideration
When choosing a cryptocurrency exchange, many factors must be taken into account. Mainly, security, trust, reputation and track record, and the services and products offered by the chosen platform. Key in the research process is to verify the legal status of the firm. An exchange should not be chosen randomly, because they will be trusted with personal data and money
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