Putting your money in cryptocurrency can be profitable, but you might just lose it all when you pick the wrong crypto exchange.
The internet is simply brimming with cryptocurrency exchanges and platforms, and the thing is that they’re not all what they seem. Avoid these 4 costly mistakes when investing in Bitcoin and other crypto coins:
Verify That It Has Been in the Market for Years
Beginners often assume that all cryptocurrency exchanges are the same. However, there are sites that only serve to scam people out of their hard-earned money.
One way to separate the scammers from the legitimate exchange companies is to see how long they’ve been operating. The longer they’ve been in the market the more trusted they are.
Also, make sure to check on the internet for the best crypto exchanges or reviews from customers.
Check for Security Measures and Safety Protocols
When money is at stake it’s best to be sure that the platform you’re joining is safe and secure.
How will you know if a Bitcoin exchange is secure, you ask? It should be right on the website’s front page. They will usually have a form of assurance for their customers, such as encryption technology, SSL certificates and more.
A safe crypto exchange will offer a few features, such as the ability to back up your wallet or export it to cold storage.
Is The Bitcoin Exchange Allowed in Your Country?
You should practice due diligence by making sure the exchange platform can operate in your country. At the same time, you should read up on local regulations so you won’t lose your investment the moment you make a deposit.
Not all cryptocurrency exchanges are registered in the US or your country, and if this is the case then you may lose the right take legal actions when your coins are withheld.
Does It Have an App?
Legit cryptocurrency trading companies will have one or more ways for their customers to look up the price of a particular cryptocurrency or carry out an action, such as buying or selling Bitcoin for example.
The most common alternative of website-based exchanges are apps. They’re convenient because you can open and trade anywhere with an internet connection.
Having an app where you can make a trade can prove to be useful. In instances where the price of the cryptocurrency is falling and you’re not at home then an app can prove to be a lifesaver.
It may not be easy to spot a shady cryptocurrency exchange from a legitimate one. However, once you’re aware and actively avoid making mistakes when choosing a crypto exchange then you’re already on your way to investing with a popular commodity.
Remember, the best crypto exchange will have thousands of active users and will have positive reviews from users on the web.