Exchanges have emerged as the platforms to purchase and sell cryptocurrencies. Consider the below-mentioned factors to decide if a particular exchange is the best bet for you.
Verify the exchange’s authenticity and security - With hacking becoming frequent news in the cryptocurrency space, check the safety protocols put in place by your cryptocurrency exchange. The pump and dump schemes are hotspots for fraudulent activities in the industry today. Hence, the exchange development company is responsible to protect its users from such frauds.
A correct method of purchase - This will vary from one platform to another. Some accept the use of debit and credit cards, bank deposits, PayPal or use cryptocurrency to purchase. For those who do not possess any cryptocurrency, using fiat currency would be ideal. Check their time taken to process a transaction.
Supported tokens - Check for the variety of cryptocurrencies they provide to their traders. Choose an exchange that supports a variety of tokens that you want to buy.
Be aware of centralized exchanges, decentralized exchanges and P2P exchanges. All three are completely different and have adequate knowledge about their functioning. Centralized exchanges make money by charging transaction fees for each executed trade. P2P exchanges directly connect the different buyers and sellers existing in the market without any interference from a third party or an intermediary. There are also some exchanges where an independent broker will fix the prices of cryptocurrencies and buyers can purchase the digital assets from the platform.
The fees structure will also vary from one exchange to another. A huge discount can be received if the exchange’s own token is used for conducting transactions. The price of the token depends on the number of tokens held by an investor. Hence, consider aspects such as security, user experience ahead of choosing a cryptocurrency exchange development company.
