How to chose an exchange
Before taking a plunge into the crypto ocean one should do some serious background check about the trading platform they are planning to invest in some are providing with a high level of security while others are extremely good in reputation.
If you really intend to dip your toes into the digital trading then do so digging before you invest in the chaotic market. if you chose a wrong exchange you may end up losing your money because of losing security or fraudulent people running the exchange.
The reliable exchanges, on the other hand, follow KYC and AML procedures, they are reasonable and will not impose any hidden transaction fees and will have a positive online reputation. This article will provide a guideline for choosing a reliable crypto exchange.
In the cryptocurrency exchange one can do crypto to crypto trading or crypto to fiat money trading for that the exchanges ask for transaction fees or bid-ask spread as a commission. But before registering with the exchanges one should be very cautious as these platforms are unregulated. The security issues should be taken seriously, some of the chief concerns regarding the regulatory issues are as under.
- The platform that refers to them as “exchange” should be registered with SEC (US Securities and Exchange Commission). Those who are not registered and still call them to exchange are fraud and it is wiser to keep away from them.
- Exchanges with limit or stop-loss facility are not reviewed by the regulatory authorities so their performance cannot be guaranteed and big investors may get preferential treatment.
SEC is working to crack down suspicious platforms that are working illegally or doing the market manipulation.
It is also important to know with whom you are trading or in simple words who are the people behind the ICO and are they authorized to sell the product, how long the exchange is operating, whether there had been any downtime in the past, how was its performance when the market was at its peak. What is the location of the exchange? And most importantly don’t forget to verify what will happen to your investment if you lose your wallet key. For what purpose the exchange will use your investment. It is obvious that all the exchanges will not have the same features as they are not created equally. So finding answers to these questions will assure a certain level of security to the trader. If you have more queries please click on the link this post.