Whether you are a trader, miner, or crypto enthusiast, at some point you may want to try another cryptocurrency. It may be a trend of curiosity, or the need to expand your trading or mining portfolio has caused your demand in this area. An excellent way to do this is to use a cryptocurrency exchange. Why you would ask? Well, it is fast, simple, and does not require you to carry out your own mining operations to obtain cryptocurrency.
How to choose the best service for you? All cryptocurrency operations are irreversible, so you need to be extra careful. This is the moment for the behind the crypto team to relieve your worries! We have compiled a series of features that you can use to find the cryptocurrency exchange that can bring you the most benefit. Let’s take a look
Although the cryptocurrency world is essentially transactions and systems that operate without trust, reputation is the key to the success or failure of a platform. Just as any smart cryptocurrency holder researches entrusting their assets to the platform, they should study what others think of the exchange. Since the cryptocurrency world is quite new, at least compared to other financial markets, it is important to know the bottom line.
Although this research did not eliminate the possibility of fraud, it helped to minimize it. A good idea is to search for the name of a cryptocurrency exchange with a “scam”. As long as you can filter the content, the communities related to Reddit encryption are usually the golden treasure trove of information. And, of course, blogs related to encryption often talk about the best exchanges. In fact, we did some research on the largest cryptocurrency exchanges in 2019 on behind crypto, so you can start here.
Now that you can be sure that the exchange will not run away with your hard-earned cryptocurrency, it is time to make sure that others will not do the same. This is where the security of the platform lies. There are several ways to determine whether the platform has the required security. First, check if it has two-factor authentication (2FA). Today, this feature has become a safety standard. It is also a good idea to check which 2FA type they have: Google Authenticator, SMS code, email verification, etc.
Second, check whether they provide security-related services and different storage options. Maybe it’s cold storage or managed storage services. Although storing assets is by no means a bad thing, it makes cryptocurrency exchanges look more suitable for hacking. Some exchanges (for example, behind crypto) do not store your transactions, but only relay transactions.
#3. Available assets
Before talking about cryptocurrency exchanges and their standards, we cannot fail to mention the top priority of an exchange: what you can actually exchange there. Although almost everyone (and definitely the largest participant) has Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), relatively small currencies and tokens rarely have such high attendance. Therefore, you need to remember which assets to exchange and see if the selected platform supports that asset.
However, even if you cannot find the currency or token you need, it does not mean that it will not appear soon. Constant niche tokens are being popularized and traded, so exchanges will add them more and more. So don’t give up on searching, you can find it sooner or later.
#4. Transaction volume
Another criterion you can use to judge a cryptocurrency exchange is its trading volume. Although it may seem strange to miners or people who just want to buy certain cryptocurrencies out of interest, it is an important part of any platform for exchanges and transactions.
After all, you can’t expect to exchange 20 bitcoins quickly on a small volume exchange because the demand is small. This means that your transaction will take longer to process, and if you need to exchange cryptocurrencies quickly, this kind of exchange basically cannot meet your needs.
Basically, the higher the trading volume of the exchange in question, the faster you can get the cryptocurrency of your choice. Since prices cannot change quickly, this also minimizes your chances of losing a large number of assets due to fluctuations. Therefore, please choose a platform with a large transaction volume for faster exchange.
Although there is no trust in the cryptocurrency world, there are ways to ensure that your users can at least rest assured that you will not disappear just because of their money. Reputation and security are good choices, but how cryptocurrency exchanges can reassure users is to make transactions transparent.
Basically, transparency allows you to check the status of your funds after you start using the platform. In a transparent exchange, there are no hidden fees or small fees, and you can immediately see every price of every service and transaction here.
By using such a cryptocurrency exchange, you will not lose money due to arbitrary charges, and you will be able to calculate appropriate fees and losses in real-time. As you can see, this will be useful for anyone using the platform, not just traders.
Although it does not seem to have much impact compared to the other conditions listed here, fees undoubtedly play an important role in the daily lives of cryptocurrency exchange users. Even a small fee has an increasing user trend. Therefore, seeking a low-cost platform is an obvious choice for anyone. Especially if you use it as often as a professional trader.
There are also different types of fees. Some platforms (such as behind crypto have a “fixed fee”, which means that regardless of the amount, you need to pay the same percentage from the amount. Other exchange platforms change the fees based on the total number of tokens you are trying to exchange, while larger exchanges require higher fees. Therefore, choosing a platform with the right rate can allow you to get the most profit and lose the least money.
#7. Know your customers/anti-money laundering
Cryptocurrency provides a lot of anonymity and flexibility in where and how to store, send, and receive funds. Unfortunately, this means that it is often found that criminals are attracted to use cryptocurrency to deal with unseen money. Especially money received illegally.
Therefore, many companies operating cryptocurrency exchanges have set up procedures called “Know Your Customer” (KYC) and “Anti-Money Laundering” (AML). These measures enable the platform to identify you so that you can use its full functionality.
Generally, to complete KYC/AML, users must upload scans or photos of their identification documents (driver’s license, passport, etc.) and a selfie with certain gestures. Besides, some platforms may ask you to provide a scan of recent utility bills. After you have uploaded the requested information and reviewed it, you are free to use all the functions of the platform.
Not every exchange needs to complete KYC to use them. Some provide limited access rights, some require KYC when you trade, and some do not require any KYC at all. Therefore, please choose the platform that suits your KYC strategy.
#8. Fiat currency options and exchanges
Although it is important to own a wide variety of crypto assets, it is also great to have options when it comes to fiat currencies. After all, if a cryptocurrency exchange does not accept your currency and you cannot exchange currency there, you need to find another place. Or, you may need to create a separate bank account using only that currency. It adds unnecessary steps to the process and takes time.
Most platforms allow the use of U.S. dollars, euros, and pounds to buy cryptocurrencies, and some exchanges allow you to exchange fiat currencies as well as for cryptocurrencies. Choose the currency you want to use, and then look for a cryptocurrency exchange that supports that currency. Or at least allow you to exchange fiat currency for the desired currency.
And, of course, we must not forget that behind crypto, you can not only exchange your cryptocurrencies instantly, but you can also purchase them with fiat currencies. You can do this quickly and easily using our widgets.
We have introduced the main criteria you can use to judge cryptocurrency exchanges. At first glance, it may seem like a lot of work and research are needed, but most of this information has been collected, analyzed, and presented in a more or less comprehensive form.
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