6 Ways to Become a Wise Cryptocurrency Exchange Traders
The global financial debt is rising, and it adds up when the COVID-19 occurs. There could be one solution to the world’s problem—the use of blockchain technology. Although there are some things to fix with cryptocurrencies, it could save the global financial crisis we are experiencing today.
So, what are the ways to become a wise trader of cryptocurrency exchange?
- Search for The Exchange’s Reputation
Since Bitcoin and blockchain became popular, there were some occasions where many fraudsters tried to imitate the exchange’s systems.
Before you sign up with the introduced cryptocurrency, make sure to research first. You can search up the name and see if that was related to some scams or frauds. That will quickly show up in Google as you put the exchange’s name and the word “SCAM” next to it.
- Have a Hardware Wallet
It is best to keep your asset on the hardware wallet than on the exchange. You can have it there in the meantime to invest, buy, sell, or trade. But if you already reach your goal, just transfer it immediately to avoid any future problems.
- Check the Cryptocurrency’s Security
How sure are you that the exchange’s website has high security? The best way to see how secured the sites are the page’s overall status.
First of all, you should see the SSL sign at the address bar. The Site Security Certificate will tell that your data is safe.
Second, it should have two-factor authentication for better security when logging in—primarily if you use another device.
Third, there should be a multi-signature authorization before a person can withdraw the funds.
Fourth, it should allow you to transfer the crypto funds on your hardware wallet.
Last but not least, the exchange must have a cold storage wallet.
- See for the Available Cryptocurrencies
Make sure that your prospective cryptocurrency exchange accepts your local fiat currency for trading. Choosing the right exchange will enable you to buy, sell, and trade efficiently. Don’t forget to check the list on the website to see the available cryptocurrencies.
- See for the Available Cryptocurrencies Accepted in Your Country
The cryptocurrency exchange accepts specific fiat currencies. However, it doesn’t guarantee that a country with these currencies can trade or exchange to whichever country they want to sell.
As an example, an Australian cryptocurrency exchange might accept the USD, NZD, and AUD deposits. But the investor or trader from New Zealand cannot trade in Australia.
Check with the help desk if the exchange allows deposit from your country.
- Know the Trading Fees
When there’s a higher trading fee, you will pay a higher percentage for every native currency deposit.
You should also check the spread fees and hidden charges. When it comes to spread fees, that can be high as 5.2% or higher. Ask your friend around if your prospective exchange comes with hidden charges.