How to Know Your Cryptocurrency Exchanges are Safe?
As it is the case with any fiat currency in the world, it can be said that there are no cryptocurrencies that are free of risk. Naturally, these risks are widely different from those expected to see with fiat currencies. Even though the volatility of the crypto’s price can be a source of instability, it can be said that this can be something really positive about the whole concept. It’s all a matter of perspective, to put it in the simplest possible way.
It all goes to the moment when someone decides to take action in this market. Experienced traders can perceive these opportunities and earn a significant amount of money. At the same time, since we are talking about the nature of cryptos and how fast-paced the evolution of their technological advancements is, we can see that there are more risks than just this one. Being fully aware of all of these negativities is something that gives you an advantage.
People interested in investing in this market need to make sure that they have chosen an appropriate exchange. That way, they will have a whole new layer of protection. In case you would like to take a look at some of them, be sure to follow this go url. Choosing the wrong one can inflict some pretty heavy damage to the trader. Therefore, we would like to talk about things you need to pay attention to learn about just how safe the crypto exchange really is.
What You Should Look For?
As you can presume, not all exchanges will provide their users with equal conditions. However, that doesn’t mean there is something that will show just how reliable they can be. Now, let’s take a look at the traits of reliable crypto exchanges.
See Where They are Based
It goes without saying that funds used for buying cryptocurrencies are directly tied to the country where the purchase will be performed from. In some cases, banks can reject to make transfers to a foreign county, even if there’s a platform that has all the licenses. At the same time, there are countries where there’s no regulation that can provide some protection to the customers. When we are talking about countries in Europe, the United States, and Canada, some regulations will ensure the transfers are safe. Sadly, we can see there are some countries where the trader cannot expect any kind of protection.
Positive Feedback
Now, we would like to talk about the importance of positive feedback. It means that you should pay attention to what other traders are saying. It is an absolute must to listen to what they have to say. Certainly, you will not abandon an idea of doing business with a certain exchange if there’s only one negative feedback. However, if there’s a lot of negative feedback, you will think twice before you will conduct business with these exchanges. Thankfully, there are a lot of different places where you can look for those. We are talking about Twitter, Bitcoin Forum, and Reddit.
Reasonable Fees
Without any doubt, any exchange has its own fees. Naturally, if you see that these fees are not reasonable, you should avoid doing business with that middleman. So, what’s an appropriate range of these fees? Well, it usually goes between 0.1% and 0.25% per transaction. In some cases, there are hidden fees that can be charged per withdrawal and making a deposit. Furthermore, we can see some fees are completely based on the volume, which is a good thing for smaller investors. When we are talking about higher trades, we can see that these fees can get even higher.
Customer Support
Any proper crypto exchange will provide their clients with functional customer support that will save their clients from a lot of headaches. It doesn’t matter for how long this technology has been present in the financial world, many people still don’t have enough knowledge to function without any help. Since there are so many different factors involved in the whole concept, like deposits, trading orders, withdrawals, and verifications, people really need help with that. Visiting sites where you can take a look at some feedback is exactly the place where you will be able to look for the one that has proper customer support.
Liquidity
When we are talking about liquidity in the world of cryptocurrencies, we are talking about the number of sellers and buyers who are active in the market. At the same time, you cannot buy or sell any kind of cryptos with, let’s say, the middleman. Certainly, we are talking about exchanges. What’s the correlation between these two facts? Well, the exchanges where there are transactions are frequent can be described as way more credible than ones that don’t have the same level of liquidity. Just think about that, when a lot of people trust some exchanger, there’s no reason why you shouldn’t trust it, right?
Previous Cyberattacks
We can see that not all crypto exchanges have the same level of protection. Therefore, it wouldn’t hurt you to have an insight into all the previous cyberattacks that occurred on a certain exchange. We are pretty sure that a lot of them have suffered from these attacks. However, you need to take a look at those who have been able to protect themselves in the best possible way. At the same time, if some of them weren’t attacked so far, that doesn’t mean that they are completely safe from any outside influence. Thankfully, you will be able to take a look at some of the security measures that are there to prevent these attacks.
The Bottom Line
Here, we’ve provided you with a couple of things that can help you to determine what are the exchanges that can be labeled as safe. In some cases, coming across this information can be pretty hard. Nevertheless, we believe that having an insight into this information is much easier than it ever has been. It should be said that taking a look at these is an absolute must before you make the ultimate decision.
