There is no doubt that cryptocurrencies have become extremely popular in today’s day and age. Many famous people are investing in cryptocurrencies nowadays, which has further accelerated the market for them.
While it is not difficult to buy cryptocurrencies you have to make sure that you are taking care of the preliminary things that may necessitate you to make some important decisions.
One of the most important things in this regard is to choose an appropriate cryptocurrency exchange. There are a number of exchanges nowadays that have become quite popular. So you must consider some important factors before choosing one.
Digital Currency Exchange is an online service where the customers are provided with a currency exchange service, meaning they can exchange the virtual currency for other belongings, such as other different virtual currencies or fiat.
The transactions have an electronic form, given that the medium could only exist virtually.
However, a few businesses still use postal money orders, credit, debit cards, and the other more of the same nature as a means of their transaction that is also acceptable in the Crypto Exchange.
Since transactions are usually happening through banks, there are few special ATMs that accept crypto currency where a customer can withdraw their money from them.
However, lately, few decentralized digital currency exchanges have functioned by using prepaid smart contracts instead of just relying on virtual currencies.
Crypto Exchanges prominent Growth
There has been a noticeable decline in the market lately, but surprisingly that didn’t stop the rise of a crypto exchange in the market. After the decline with only a few days, the company, Binance, had announced its 240,000 users, who had joined in only one hour!
The Power of Blockchain
Successful individuals or companies are no strangers when it comes to rumors, and Binance, known as one of the biggest crypto exchanges, also had its fair share of rumors.
The company has been recently offline due to some server problems. Still, the public had a different interpretation, and Binance had to fight rumors and accusations that it had been hacked.
Binance released an announcement to the public to fight off the rumors by saying that the evidence given by Blockchain refutes all the accusations and rumors that are coming from the public.
Volume of Order Book
The order book is an important piece of information that you need to know about cryptocurrency exchanges. Most exchanges with a well-diversified customer base published their order book quite publicly. Look into the order book to understand the buy and sell ratio that the exchange offers.
This is generally an excellent indicator of whether an exchange is reliable based on the number of people who use it and making sure that it has a certain degree of liquidity.
However, if you do not find an order book for a particular exchange it might simply be so because it does not have the function yet and hence should not be disqualified immediately.
Exchange Fee Rate
Bitcoin exchanges function very similarly to a bank and have some common features. Every Bitcoin exchange charges an exchange fee just like you have to pay a bank for their services. The only thing that you have to make sure of here is that the exchange rate is not too high when compared to the rest of the market.
While the exchange rate is subject to quite some degree of flexibility and is often quite different depending on the exchange, you need to make sure that it is within your budget. At this juncture, it is wise if you compare the rates and then come to a decision.
Related: Bitcoin Scams to be on the Lookout For
Country of Origin
Another very important thing that you need to keep in mind when choosing an exchange is the country of its origin. Since the laws are quite versatile and vary from country to country, it is important that you know exactly where the exchange is located.
Hence you need to look at the fine print to ensure that the exchange you select accepts the currency in your country.
Exchange Must be Transparent
Since all the transactions concerning buying Bitcoins happen online, it might be difficult to trust an exchange completely. It is of extreme importance that you make sure that the exchange is absolutely transparent and reliable with the information that they provide.
You need to keep in mind that you will be dealing with and sending a lump sum amount of money to the exchange and there are pertinent chances of being attacked by hackers or frauds.
A transparent exchange generally publishes all their cold storage addresses and provides their audit information that will help you check into their Bitcoin reserves. These Bitcoin audits are extremely important information that you can access to find the liquidity of the company and whether it will be able to cover the exchange sales.
Whether you are starting recently in your Bitcoin journey or have been in the business for a long time, you must always do a thorough background check before you invest in an exchange.
Renewed Canadian Cryptocurrency Exchange
Recently, there have been plenty of cryptocurrency exchange options popping up for customers here and there, and the larger sum sometimes can be overwhelming, leaving the customer pondering and confused about which option would be better.
Because Crypto Head Canada knows that it has put together a wide top 10 lists of the best Canadian cryptocurrency exchange websites so that no customer will be confused about which website to choose, their list is based on security, support accessibility, and fees.
South Korea and Crypto Exchanges
A local news agency had recently announced that the South Korean Government would be gathering taxes from the country’s digital currency exchanges.
Supposedly, these taxes will be collected to fight money laundering.
South Korea also had a few rules and regulations concerning crypto changes and had banned certain uses of crypto changes such as the use of unidentified digital accounts, foreign and underage users from trading online, and opening new digital accounts.
Digital Currency Exchange has been a bit lately, and its market continues to grow.
Many users join a company to have their fair share of crypto exchanges; there are many crypto exchange companies around, so it’s better to check out your options in terms of ease of use, security, support, and more before joining a certain company.
Checking for the company’s reputation before registering online is also preferable.
Some of these exchanges may look extremely reliable and might be hiding fraudulent activities. Hence one of your biggest priorities is to stay far away from such stamp exchanges that are only here to take all your money. Pay careful attention to all the different information that you must be looking for and take into consideration even the smallest red flags that you might sense.