How to Select a Cryptocurrency Exchange?
You are new to the cryptocurrency industry. There are many exchanges in the industry. And you don’t know which one to start with. How and by what criteria should you choose between them? Actually, it should work like an exchange, but the exchange here may be a little different.
There are about 190 cryptocurrency exchanges whose names are frequently heard in the crypto money industry these days, apart from the small local ones.. Very interesting but when a cryptocurrency is hacked and your coins are stolen, the platform may not refund them. There are no clear laws, rules or regulations on this subject.. Only the process of a company that holds your money in advance can be monitored.
Mt.. Gox Incident
As long as this situation is likely to occur, Mt. Gox hacking would be a good example. Mt.. Before Gox was hacked, it was a platform where 80% of the world’s crypto money trading was done.. But when he was hacked, he simply filed for bankruptcy.. And the usual bankruptcy process started to work.
Be careful not to use the stock markets, which can be said to exist today like a one-night gamble, and will not exist tomorrow.. So, which criteria should be considered when choosing a platform?
1. Look at the address
If the address is not known, the money will not be entrusted to you.. If the address of the platform is not clear, what will you do when it is hacked?. Where, how and according to which law will you seek your rights?
2. Question its reputation
A simple google search will yield many results.. In particular, examine the forums where users of the platform share their experiences.. Comments will give you a great idea.. Complaints about potential risks and situations will draw your attention. Try to understand to what extent these are due to structural inadequacy.. Do a search by typing the word hack along with the name of the platform.. The results will show you past hacking situations.
3. Be sensitive about security
How hard is it to open an account? If it’s hard it’s better. If the account can be opened easily, make a note of it as a reservation.. If things go wrong you may not get your money. Experts say that 95% of the cryptocurrencies held by the exchange should be inaccessible.
4. Consider commissions
Exchanges with a high security rating charge higher commission rates. Coinbase can be cited as an example.. The platform charges a 4% basic commission for every withdrawal.. Be careful if there is a 0.2% transaction commission.
5. Act fast
Efficiency is key in effective crypto trading. Do not hold large amounts of funds on exchanges. Don’t trade an amount you can’t afford to lose.
Source: CryptoDaily