Tips for Choosing the Right Cryptocurrency Exchange Platform

A cryptocurrency exchange platform is where traders or investors use a third-party app to start trade or invest in different cryptocurrencies against the value of a dollar or other fiat currencies. These are quite popular and the most common method where people trade such currencies. However, the surge in such platforms has created immense confusion amongst new investors. To ease their minds we are providing some tips here that they can follow to choose the best platform. 

1. Security

One of the reasons for major concerns for crypto investors has been the security of their assets. Security measures can be taken in many ways.

• Since all such exchange platforms rely heavily on the internet it can cause many attacks on them. Recently a Singapore-based exchange platform faced an attack that led to it losing 200$ million worth of assets. Therefore, you should put security as your top priority when deciding which platform to choose. So, try to find an authentic platform that has a good review in the market.
• You must decide how much of the assets you are going to store on hard drives and how much you are going to store online. While such platforms must have a certain percentage of their currencies online for active trading, you should look if the majority of your holdings are secured in a hardware wallet or not. 
• Another thing is the security of the app itself. Many exchange platforms offer insurance policies that save from any external attacks that the platform may face. 
• Some also rely on two-factor authentication security. Here, after adding the basic login credentials, you will receive a one-time password in your registered mobile number which you have to put in to log in. This adds further security to your wallets. 

Therefore, you must choose your exchange platform wisely keeping in mind the different security measures they have to offer. They offer you a place to make safe and secure transactions. 

2. Accessibility and guidelines

Many countries have brought forward regulations regarding cryptocurrency exchange platforms. Trading on exchange platforms that are not per your country’s guidelines can cause the whole transaction to be illegal and may result in a loss of assets and money for you. Therefore, keeping a check that you only choose platforms that comply with regulations in your country is also very important. If you’re using a crypto exchange Philippines platform, it’s best to only use it if you are in the Philippines as it might not be suitable to use in other countries.

3. Fees 

In addition to security and accessibility, another important aspect of choosing the best platform is the fees they demand. Cryptocurrency exchange platforms are mostly regulated by third-party, so they demand some amount of transaction fees and regulatory fees. However, several financial analysts have repeatedly mentioned how high fees on a platform should put you off. They believe that the higher the fees the better capital the platform has to regulate its functions. But, this doesn’t mean that you would be ready to pay an exorbitant amount of fees. You might search for a platform where the fees should not be astronomically high, and neither should they be very low.  If you are someone who is not willing to pay high prices just for conversion you have to look at different options available. You can choose a peer-to-peer exchange platform. 

4. Liquidity 

Another important part of choosing an exchange platform is looking at the liquidity option they have to offer. If you can convert your cryptocurrency to cash and vice versa easily and without any delay, it should do the trick. Such liquidity is important especially when you are looking at making daily profits via trading. 

Conclusion:

Therefore, as you can see these are some of the important factors that you should consider to make sure that you have chosen the best cryptocurrency exchange platform.