Going into the realm of cryptocurrency can be a daunting task for new investors. There are lots of things to learn in order to handle these volatile investment vehicles safely and successfully.
One of the first things to be concerned about is choosing the right cryptocurrency exchange platform. It serves as an online marketplace wherein you can purchase, sell, or trade cryptocurrencies. This closely resembles the stock exchange – the difference is that no brokers will transact for your behalf.
In choosing a crypto exchange platform, you should consider these essential aspects to help simplify things for you.
1. Availability in your Country
Before signing up on any platform, check if the exchange has an office address in your country. For instance, you are looking for ethereum exchange in Hong Kong. It is best to choose one that available in the same region where you reside, simple for security and convenience.
Liquidity means there is an ample number of buyers and sellers of a specific cryptocurrency that makes it available for trading. You would always what to any exchange to get high liquidity so that it will be easier to purchase or offer cryptocurrencies in the platform, leading to great pricing and seamless transactions.
Cryptocurrencies have become a trend, and sadly, even for bad guys who are looking to take advantage of your hard-earned money via scams and other illegal actions. Verify through online forums if the platform has a history of hacking mishaps. Any incident implies how weak their security system is
4. Trading Fees
Specific fees are required over exchanges whether you are purchasing or selling cryptocurrencies. However, the rates differ from one platform to another. Of course, you’d want to select one with the lowest charges so you may enjoy larger margins on your transactions.
Some exchanges have features that will allow you to get involved in margin trading. This is the practice of borrowing money from a specific broker to purchase or sell more cryptocurrency than you can afford, which is excellent for those looking to use crypto assets for investment.
6. Ease of Use
Your platform of choice must be user-friendly when it comes to how it looks or operates. Having one that it easy-to-use will help prevent any trouble for anyone who likes to try transacting on the platform. Some exchanges even have a mobile application for its users to monitor pricing and trading.
Selecting a cryptocurrency exchange platform marks the beginning of your journey in the cryptocurrency world, so make sure to do it correctly at the outset.