You’ve found out about the fantastic benefits of cryptocurrency and can’t wait to get started. Your friends, colleagues, and several others that you know have amassed large profits or expect to do so in the future. However, since this is your first time searching and selecting a crypto exchange platform, the chances are that you will be confused. The next step is searching and choosing a crypto exchange that caters to all your needs. What are the things to look for while choosing one?
It Should be Accessible
Pay careful attention to the accessibility factor when searching for a virtual currency exchange platform. Find out if the service is available in your country before proceeding. Even if the company does not have a physical address, it should have a customer service number, email address, and a solid support center you can contact whenever there is a need to do so. It would help if their website had a specific FAQ section that explained how things are done.
There Should be High Security
You should pay as much attention as you can to the security aspect. Check if the exchange allows you to create an account easily or not. Although the service should be user-friendly, there should be ample safeguards in place. It is better if they have an app where the registration process takes place. You could also check beforehand if there is a separate trading password since that will ensure the security of your assets and transactions. If there is a “Know Your Customer” or “KYC” verification process in place, all the better.
What are Their Fees?
The quality of the platform’s service cannot be determined by the fees they charge. Just because an exchange charges higher prices does not mean that it would be suitable for you. You should consider the number of transactions to be conducted each day and the degree of activity. You could also check if the platform has fluctuating fees and different fees based on the type of cryptocurrency you deal in. Make your first deposit only after understanding the entire fee structure.
Do They Have Enough Trading Volume?
Go for an exchange that has sufficient trade volume. The higher the volume of trade transactions, the fewer chances of distorted pricing. If there is a higher volume, you can be assured of liquid holdings or assets. A liquid asset can be converted into cash in the shortest amount of time. If a platform witnesses significant buying and selling, chances are that you will also be able to buy and sell quickly. There are several volume tracking websites where you can follow the trade volume.
Facility for Providing Tax Information
Ideally, an exchange should provide you with a tax form to help you file your tax returns. Since crypto is taxable, you will have to show your capital gains. Even if the platform does not have a form, it should have a facility or process to export your trade history and transactions. You should be able to generate your profits, losses, and income tax reports.
Is There a Storage Facility?
Some people believe that you should store all your cryptocurrency as cold storage, or offline wallets, making them inaccessible via the Internet. However, if you are a beginner, you can keep your crypto online or as hot wallets. They are easier to use and understand. Later on, with the increase of transactions, you should go for offline storage. Always go with an exchange that supports a hardware wallet that allows you to store the private keys in a hardware device.
You need to pay attention to these things while searching for a reliable and efficient crypto exchange virtual exchange platform. It is a great idea to invest and trade in cryptocurrency, and the information mentioned above will help you do that safely.