Last Updated on November 24, 2021 by Ope Quadri
Since the world experienced the unprecedented boom in the value of bitcoin, we’ve come across a question like what cryptocurrency exchange should I use for trading? If you are a newcomer in the industry, definitely, it’s the right question. In this post, we’ll share with you some attributes to look out for before entrusting your hard-earned money to a platform.
A few months ago, we compiled a list of some of the crypto wallet providers that are trusted in Nigeria. More details can be found at:https://infomediang.com/bitcoin-wallet-providers-nigeria
The fact is…
Crypto trading has changed the way we see business. It’s truly the first digital currency that has brought traders across the world together.
Distinctly unique from the conventional financial institutions, the crypto exchange makes it possible for people to buy, sell, and trader bitcoin, ethereum, and other popular cryptos.
How Bitcoin Exchange Work
Their services are similar to a stockbroker. They give you the tools to make a purchase and sell digital currencies.
Usually, the first thing a trader looks out for is whether the exchange supports their crypto or not.
So how can you choose the best cryptocurrency exchange?
Our answer is simple and straightforward, simply look out for the following 11 attributes:
- Must Be Transparent
- Moderate Fees
- Must be Secured
- Users’ Review
- Simple to set up
- User Friendliness
- Government Recognition
- KYC Protocols
- Must Be Fast
Must Be Transparent
Transparency is the key when you are “managing” other people’s wealth. The exchange must be able to disclose how much you are charged per transaction and the taxes involved (if any).
Charges on the platform must be explainable and understandable by its users, in simple language. If the exchange operates in a country that regulates cryptocurrency, then it must not hide anything from the government and other regulatory agencies.
If the platform can’t, it may be a dubious platform that could disappear with your BTC soon.
One of the attributes of a bitcoin exchange must be a moderate fee. If the platform charges are too higher, then you might make nothing or little for using the platform for trading.
Must Be Trustworthy
What was the first action you took before buying your first crypto? Searched for the trusted exchange on Google? Why your answer might lead to a decision-making action, it is very important to note that not everything that pops up on search engines is trustworthy.
What exactly can you do to minimize your loss?
Do your due diligence well, don’t just jump on everything you come across online. Run a check on the reputation of the crypto exchange. Your search might even land you on a review page.
The reviews may guide you in making the right decision. You need a platform that allows you to trade safely.
As mentioned in point number 3, their millions of buyers or traders who have saved millions of dollars around the world just because of reviews of users of such products.
Look out for positive reviews and negatives reviews and weigh your option if the risk is worth it.
Must Be Fast
How many minutes, hours or days can you wait for performing a transaction on a bitcoin exchange platform? Does it take days for the transaction to be implemented?
One of the things that make bitcoin unique from the conventional currency is the fact that is fast and easy to perform business transactions.
As such, the exchange platform must be far better than the banking transaction.
Bitcoin has made it easy to send ‘money’ from country A to Country Z in the speed of light. If the exchange is slow, look for an alternative that is faster and trustworthy.
Must Be Secured
Does the platform have in place security measures to protect its customers’ wealth? Is it secured? Is it prone to hacking?
The best exchange could be hacked. It’s fresh in our memory the hacking of Binance in 2019. Before the company realized what was happening, $40 million worth of bitcoin had been stolen by hackers.
That happened despite the fact that Binance is one of the best cryptocurrency platforms in th world.
What does it tell us?
Every trading platform is a target of hackers and online scammers, it’s an onus on the owner to take action to make its platform secured for its benefit and its clients.
Must Be Popular
When you opt for popular crypto exchange, it easier for you to learn faster from its forum, and access to more experienced investors and traders, simpler for you to read reviews of previous users among others.
As a starter, it advisable to avoid an unpopular exchange platform.
Simple to Use
Do you need a week-long tutorial to understand how a platform works? One of the key qualities of a bitcoin exchange should be ease to use. Easy to interact with.
Within a few minutes of playing around, you should be able to use and begin to trade. The more you use, the more experienced you are.
Some of the exchange has even made it simple as you can see a 5-minute video to watch to starting trading.
A good crypto exchange must adhere to Know Your Customers protocols.
A friend once said he chose a specific platform because of its user interface.
You can gain knowledge about this when you read users’ reviews, ask people in the forum (if it has one).
if it doesn’t, the bitcoin room on Reddit should be your stop, ask questions and you’d be surprised about the hundreds of BTC crypto enthusiasts that would help.
While users of cryptocurrency are meant to be anonymous, we’ve seen in the past few years that governments around the world have been trying to regulate the activities of cryptocurrency buyers and sellers.
Their argument is cryptocurrency could be used to fund terrorism and perform other illicit transactions.
As such, exchange firms are registered in such companies. If you found yourself trading from such a country, does the platform have the approval of the government?
Key Take Aways:
Weigh the qualities of a bitcoin exchange platform and choose the best that meets most of the above-stated points.
Above all, an exchange must be trustworthy, the transaction must be fast, and must easy and simple to use.
Ope is the Head of Content at InfomediaNG. He’s a researcher whose interests cut across real estate investment, stocks, financial technology, and youth empowerment. He’s awesome in Content Marketing and SEO. Favourite Tools: Google Analytics, Canva, UberSuggest