If you have decided to invest in cryptocurrency, then the next step is to register on the exchange. This will allow you to buy cryptocurrency at the most favorable rates.
Safety rules for registration on cryptocurrency exchanges:
- Create a new, most secure password, do not use existing passwords from other accounts.
- Be sure to pass two-factor authentication.
- Do not keep large amounts of money on the exchange.
The main criteria for choosing an exchange for trading cryptocurrencies:
- Reputation. It is very important to check what customers think about the quality of work and service to understand if the platform is developing or its owners simply pump out funds. To check the exchange’s reputation, it’s best to visit Reddit and Bitcointalk sites and look through reviews.
- Geographical limitation. At the stage of registration or verification, exchanges may refuse to work with clients from certain countries. Usually it is Syria, North Korea and Crimea, but sometimes the list of permitted countries is limited to the EU, the US, etc.
- Deposit methods. You should know whether the exchange accepts credit cards or bank transfers. If there are no convenient ways to replenish your account, it is clear that the exchange doesn’t suit you. In certain deposit methods you may have to pay fees.
- Withdrawal methods. Both the withdrawal of Fiat money and the withdrawal of crypto assets are equally important. In some methods, there are additional fees.
- Trading pairs. All exchanges have Bitcoin and Ethereum for trading, but what other assets are available for trading? Can you withdraw them?
- Trading volume. Even if trading pairs are available, there are not always sufficient trading volumes, which means that the difference between buying and selling rates will be higher. And the transaction speed will be lower.
- The size of trading fees. Trading fees on exchanges are much lower than on the stock markets, but if you are going to trade actively, the size of trading fees becomes important.
Security of cryptocurrency exchanges
Unfortunately, the majority of cryptocurrencies were stolen from crypto exchanges. The problem is that cryptocurrency is stored in online wallets on most exchanges. If the attackers gain access to the private key, they have a very large amount of money in their hands.
Because of the high risks of hacking, don’t keep too large amounts of money on exchanges. After buying the assets, send them to your wallet. It is better to choose a reliable offline wallet, such as Ledger or Trezor.
How to understand whether the amount of money is too large to be stored on the exchange? If you are not ready to lose it, then the amount of money is too large.