Bitcoin Facilitates trading and has gained the momentum that it had been waiting for since it made its entry into the financial world. While it came on initially as experimental technological jugglery, today it is a phenomenon that has touched the whole world more or less. You can say that it has found exclusion in some countries and some countries are still left to legalize it. But the fact does not get altered that people of these countries wouldn’t remain aloof from Bitcoins and cryptocurrencies. And why not when there are some trading apps like BitQS to help all people interested in Bitcoins? In this article, we will discuss What Is A Crypto Exchange and How To Select One.
But how do you trade with something that has no physical value or even presence? The answer here would be to trade them via exchanges that facilitate their trade.
What Are Crypto Exchanges?
Crypto exchanges are platforms from where you can trade with Bitcoins or any other cryptos. Buying and selling cryptos are the main functionalities of crypto exchanges. Crypto exchanges also allow you to barter your cryptocurrencies. You can buy your cryptocurrencies with your fiat currency or with different cryptocurrencies. You can get them converted back. The value that your exchange offers you for your coins is the present market value of that specific coin. Crypto exchange, in other words, paints a correct picture of the crypto world. This is what exchanges are all about.
Steps on How to Choose reliable Crypto Exchanges
You must consider a few factors before you choose your crypto exchange. These factors when considered with care will give you the best crypto exchange.
Transparency Practiced By The Exchange
This is the first aspect that you must consider while choosing your exchange. Cryptocurrencies have no legalities associated with them nor are there any regulations that can bind them. So, policies and methods of exchange should be transparent and clear for all involved with them. Evaluate and scrutinize their audit reports. They will give you all the vital information about the company that you need. And if your exchange is transparent they will share their cold storage address and provide you with the methods on how to verify their crypto reserves.
Check on The Location of Your Exchange
The location is very vital in that you will get to thoroughly understand what laws and regulations of the land you come under. So in that case it would be best if you chose that crypto exchange that is in your hometown or your locality. You can also visit them to get assured about their authenticity of existence too. That way you will be well versed with the laws of the land.
Provide your KYC details and all other related documents. In this way, you will have some legal traces of your crypto activities. The procedure is not long and complicated but it has to be done.
Fees That the Exchange Charges
You must remember that exchanges are not free trading platforms. They will charge a certain fee that you must pay them. So before you enlist yourself with any exchange make sure to know in detail about the fees that they charge you. Keep a note of all that and try to make comparisons of some well-known exchanges. They must not change too high or too little. Get an idea about the average rate that reputed platforms charge.
The Availability of Coins
An exchange may be recommended to you by your friend or anyone who is known to you. But do not go by that. You have to do your groundwork before just jumping in. Check out to see the coins that are available with them. The coins and tokens that you get at your exchange let out a lot of information about your exchange. It will let you in on their quickness, decision-making, and how efficient they are.
Look For the Security of The Exchange
If you face difficulties in creating an account with your exchange, then it is a good sign for you. This fact will assure you about the high security of the exchange. You can at least trust the exchange that hacking them would be difficult for any scammer. Also, you must check to see how they store their crypto reserves and wealth. Their storage should be another determining factor for you.
Now you know what a crypto exchange is and you also know how to elect a genuine one. Trading cryptocurrencies by crypto exchanges are the best and safest method. Some exchanges even provide e-wallets to store your passkey which is at one level a good thing. So, remember the points and search for the best crypto exchange for you.
Also, you can check: Bitcoin Price Determiners That Decide Its Price.