Willing to invest their first funds, novice businessmen are in danger of losing all their assets. After all, the crypto industry is quite an immature market, thus the choice of a platform to trade on is of great importance. That’s why we decided to share a guide on how to pick the safest cryptocurrency exchange.
Follow the mentioned five tips to ensure you are dealing with a trustworthy platform.
Why Is It Extremely Important to Use a Reliable Platform?
The top three things that impact the safety of your funds are as follows:
- The need to connect your wallet
- The requirement to pass KYC verification (Know Your Customer)
- Possibility of trading on a scam platform (purchasing stolen tokens)
If you connect your wallet to an unreliable provider, you give them full access to the assets stored on it. To keep yourself safe, you should either have a reserve wallet (to buy tokens and then transfer them to the main one) or deal only with reputable websites.
As for KYC, by providing a dubious platform with your personal documents, you risk too.
And the last threat you may face is acquiring flagged tokens. This is done for those coins that were stolen or took part in money laundering. All this is out of the question when you trade on reliable platforms.
5 Tips to Consider
The first step in cryptocurrency trading for a beginner is choosing a trading platform. There are many of them, and each has its advantages and disadvantages. A few simple tips will help you choose the right one.
1. Check How Many Assets Are Available on the Platform
The better the platform, the more tokens are listed there. Even if for today your primary goal is to accumulate only BTC and ETH, believe us, every significant growth of major tokens is followed by altseason. So in the long run, you should have the possibility to compare BTC vs BCH, XRP, or ATOM, and swap the coins. Therefore, it would be very convenient if you could do all the transactions in one place.
2. Compare Fees
Unlike traders, exchanges earn not on volatility but on commissions. Therefore their initial interest is to take as high fees from every transaction as possible. Hence you should analyze the rates and compare them to choose the lowest ones. By the way, there are websites that charge no fees at all.
3. Make Sure the Safety Measures Are Top-Notch
Safety is perhaps the most crucial factor when picking the right exchange. To find the best one, it is recommended to watch different advertising videos, find what measures a particular platform takes and whether there have been any hacks (if there have, how the company acted on them).
Check how the crypto exchange protects your account: a seed phrase, two-factor authentication, the ability to connect Google Authenticator or create a whitelist for withdrawing funds, etc.
4. Read User Reviews
Your next step would be watching and reading reviews. Find out what people like and hate about the chosen platform. Discover what troubles the clients encountered when depositing and withdrawing funds, transferring and storing tokens, or passing verification procedures.
5. Test Customer Support
Contact customer support right after you have faced at least a minor problem. For example, you can’t connect your fiat card to top up your balance. Turn to specialists to test them. This will give you an understanding of the quality of the experts and whether they could help you in case of a bigger problem.
Final Thoughts
Keeping your money safe is very important but not that hard nowadays. A reliable platform will take every safety measure required from their side. By choosing a trustworthy crypto exchange, you ensure that your funds will be in the right hands, your personal data won’t be sold or stolen, and your assets won’t be blocked without a reason.
