If you want to invest in cryptocurrency, you need to sign up for an account with a crypto exchange where you can purchase your favorite digital assets. However, choosing the right exchange to buy and store your crypto is as important as which digital currencies you choose to buy. Are you looking into purchasing assets like Bitcoin, Ethereum, or Litecoin? If so, here’s why it pays off to find the right crypto exchange.
Every cryptocurrency exchange comes with unique trading fees
One of the most important things to focus on when you’re looking for an exchange is the trading fees associated with their platform. On the surface, you will typically pay fees when you buy and sell cryptocurrency (whether these are crypto assets like ETH, BTC, or LTC).
Beyond this, there may be additional fees when you exchange your crypto as well as when you make any trades. The greater the fees are, the less profit you’re going to walk away with. You will then also need to consider the taxes you will have to pay on profits you make when you trade crypto.
Put simply, there are a lot of hidden fees you will see as a trader, and you want to look for a high-quality crypto exchange with low fees across the board. For example, if you’re just getting started and are interested in a platform that’s built for beginners, you may want to try BlockFi.
BlockFi is a seamless trading platform that offers a flat fee for withdrawing funds as well as the opportunity to boost your cryptocurrency holdings with relatively generous interest rates. For the average investor, the trading options are good as well. BlockFi offers trading for Bitcoin, Ethereum, Litecoin, and Pax Gold (as well as stablecoins like USDC, USDT, and GUSD). Just make sure that you read a BlockFi review or two before you get started!
Security will play a crucial role in the safety of your funds
Your bank account and your fiat currency are protected by the bank and a host of security practices. As such, you should expect your crypto holdings to be too! Exchanges use wallets known as hot wallets, which are always connected to the internet and vulnerable to malware and hackers.
However, they often counteract this by implementing security measures like two-factor authentication as well as putting the majority of their funds into cold storage. To make sure that your crypto assets will be protected, look deeper into your chosen exchange’s security practices before signing up.
Established crypto exchanges have a track record in the crypto space
The cryptocurrency space as a whole has a unique issue: a lack of regulation. The government is becoming more diligent about what rules an organization has to follow, but there are scammers who managed to slip through the cracks.
When you plan on signing up for an exchange, always do your research to learn more about how long they’ve been in operation and what others have to say about them. That doesn’t mean that new exchanges are bad, but it does mean that joining may open you up to unnecessary risk. Instead, stick to established exchanges with a track record in the crypto space like Gemini, Coinbase, and Binance for your crypto trading needs.
The cryptocurrency exchange that you choose will ultimately determine the experience that you have when you start trading crypto. If you want to make sure that you’re joining a cryptocurrency exchange that offers low fees, a pleasant trading experience, and proper security precautions to keep your digital assets safe, use the tips above to find the perfect crypto exchange for your needs.
Watch this space for updates in the Opinion category on Running Wolf’s Rant.