This article highlights the different aspects of cryptocurrency exchanges that you need to know. This information will help you formulate better strategies while dealing with cryptocurrencies.
One of the legal ways to buy and trade cryptocurrencies is via a cryptocurrency exchange. However, it is not the only benefit you can seek from a crypto exchange. The following list highlights several benefits cryptocurrency exchanges provide:
- Easy accessibility – Crypto exchanges help to trade cryptocurrencies with the help of a mobile application or website with ease.
- Diversification – Numerous options for digital currencies are available to investors to build a diversified portfolio. The choice of numerous digital assets helps investors build a portfolio as per their preferences.
- Higher safety – The prominent crypto exchanges store funds in cold storage to ensure safety.
- Adhering to regulatory requirements – Choosing a compliant crypto exchange helped adhere to anti-money-laundering rules and know your customer regulations. Numerous crypto exchanges like OKX (brand) help investors comply with such criteria. You can be worry-free about your investment by complying with such regulatory requirements.
How to Compare Different Cryptocurrency Platforms?
Numerous factors can influence the decision to shortlist an apt crypto exchange for your requirement. The vital aspects that should be in your consideration set include:
- Underlying assets – It is critical to check the assets a particular cryptocurrency exchange supports while taking a call on the exchange. It is vital if you want to purchase any cryptocurrency other than Bitcoin. Most crypto exchanges support a few currencies, while others allow trading in numerous digital currencies.
- Payment flexibility – Crypto exchanges let you purchase digital currencies directly from your account. They support wire transfers and even let you purchase using a credit card, debit card, or a digital mode of payment.
- Charges – Steep charges can dent your returns, and therefore it is critical to research the crypto exchange fees before opening an account. Withdrawal and trading fees are common for crypto exchanges. Other fees can add up depending on the exchange you select.
- Safety – Crypto exchanges get a lot of attention, and hackers target them with fraudulent practices. Cyber theft and security breaches are common among crypto exchanges. Therefore, it is essential to choose a crypto exchange that deploys proper cybersecurity measures.
- Customer support – Numerous questions can pop into your mind if you are new to investing in cryptocurrencies. Under such circumstances, it is ideal to go for an exchange that has a history of offering prompt and helpful customer service.
- Reputation – Before signing up and opening an account on a crypto exchange, it is ideal to do your research about the platform’s reputation. You can go through various online customer reviews and ratings and check for any red flags on the news portals.
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Signing Up for a Crypto Trading Account
Opening an account in a crypto exchange follows the same procedure as that of an online trading account. You will need to share your details and set a password to create your account. After verification of the details via email, a confirmation regarding account opening will be available.
The identity verification process starts after email verification. You will need to share an ID proof with a document substantiating your residential address. Most crypto exchanges will ask for a bank statement, address proof, or your mobile number.
A few exchanges employ a high level of security for identity verification. During such a rigorous check, you will need to hold your ID and click a picture to share with them. The photo remains with the exchange as proof to validate your information on the ID and physical appearance.
The time required for user verification can vary depending on the portal. A few exchanges often offer tiered verification. With such an approach, the verification process differs for a lower limit account, and you will have to share fewer details. However, if you want to enjoy all the benefits, it is ideal to complete the verification process.
As you can see, shortlisting a suitable crypto exchange can help you with a host of benefits. It is essential to verify the reputation of the crypto exchange to avoid any fraud. Being vigilant is ideal during the entire process.