Cryptocurrency Exchange considerations to buy and sell your cryptocurrency. The first step in the world of cryptocurrency is through an exchange or a marketplace. This in which buyers and sellers interact. Also the investors can sign up with an online exchange by using their bank account. Also by digital currency or credit card.
Cryptocurrency Exchange all over the world
There are at least 190 exchanges. They are in operation, and with new ones popping up every day. Also many of them do not operate under rules or regulations to replace your digital money. This thing make your digital money losing the value , getting lost or being hacked. Here is the considerations to buy and sell your cryptocurrencies.
The considerations to buy and sell your cryptocurrencies
1- To find the suitable exchange for your location
Many experts say that if you are from the U.S.A , it would be suitable to choose an exchange from the United States. Search for an address for the company. You have to know where the location of your exchange. Also this thing is very important. It is very important because if you get hacked, it will be very difficult for you to find the right jurisdiction. The right one in which you should sue the people who stole your money. Furthermore all cryptocurrency exchanges do not accept U.S dollars. If you do not have digital tokens like many people , you will need to search for an exchange that takes cash. Be sure that the exchange will work with you. For instance, Bitfinex that is one of the biggest exchanges does not accept U.S.A payments. Also it does not accept citing, among many reasons, and a challenging regulatory landscape. Concerning that point you have to check your state’s stance on exchanges.
2- To check the reputation
There are many exchanges that have been hacked. For that reason you should have a try to speak to others users of an exchange, and inquire about their experience. Also online forums became a magnet for cryptocurrency exchange information.
3- Fees and Volume
The experts say that Many exchanges let you weigh fees against protection. Also more secure exchanges charge a higher rate in transaction. Coinbase charges a base rate that is up to 4% for all transactions. For instance, other exchanges with fewer guarantees may be can charge as low as 0.2 %. Furthermore you want to have an exchange with high volume. There is this site (coinmarketcap.com) you can look into exchanges by volume on it. The experts say that the higher volume leads to higher price accuracy. Also they say that since the exchange have a process to many transactions at once rather than a few an hour. Over the course of which these volatile concerning investments can gain or lose thousands of dollars. There is no matter how much you have researched, and verified an exchange. You have not keep too much money on it for too long.
4- Make sure that there is enough security
Many experts say that cryptocurrency exchanges should follow Know Your Customer (KYC), and Anti Money Laundering (AML) procedures. These procedures are for the reduction of illegal or fraudulent activity risk. This happens by certifying customers’ identity. Make sure that the exchange keeps the majority concerning its assets offline. Many exchange’s assets should be offline at least 95%. For example Coinbase keeps 98% of its customers’ funds off the internet.