Precautions to Be Exercised While Searching For Best Cryptocurrency
Exchange!
Cryptocurrency and cryptocurrency exchanges, both are riding on a wave of novelty. Under this scenario, choose your cryptocurrency exchange wisely by taking all precautions to keep your money and investments safe. Cryptocurrency is making headlines in the financial markets like never before. Introduced in 2009, it has been on an upswing since 2013. With increasing popularity and acceptance of this form of currency, many investors are looking towards this option as a lucrative proposition that can yield disproportionate returns. Data backs these expectations as the cryptocurrency has given returns up to 700% in the year 2017. Imagine this type of return on investments and you can really multiply your money quickly.
Some trade analysts and financial experts call this a bubble and are cautioning the investors into getting into this kind of digital trading. One of the main reasons for the skepticism is that this is a decentralized currency and there is no regulating authority over it. The risk of transactions becomes high and it solely becomes the responsibility of the cryptocurrency in terms of ownership. There is also the underlying feeling that if the Government of your country bans the cryptocurrency, then your investment may be rendered illegal. However, these are only fears and so far, the digital currency has more positives to it than negatives. So, if you are convinced of plunging into the world of cryptocurrency, then by all means do so through a cryptocurrency exchange. Cryptocurrency exchanges are online providers that help you with the process of getting your own cryptocurrency wallet and then transacting through it. Bitcoin is the oldest cryptocoin in circulation and there are many others now like Ethereum, Namecoin, WorldCoin and Induscoin to name a few.
For choosing your cryptocurrency exchange, here are some precautions that you must always consider:
1. Check For Currency Options There are many cryptocurrency exchanges on the internet and the parameter that you must first check is that how many options of cryptocoins are offered and currency conversions in how many currencies is available.
There are many cryptocoins with the most popular being Bitcoin and Ethereum. You must check that the exchange provides more options. Alternatively, you may go in for an exchange that provides its own cryptocurrency like Indus Coin. It is represented by the ticker code IDV and since it is specific to the provider, all information about the performance of the coin on various exchanges is mentioned. Hence, there is transparency and you can do better tracking of your coins.
Your cryptocurrency exchange must provide you with the flexibility of performing transactions in other currencies. Check for the currency conversions supported by your cryptocurrency exchange which will increase your scope of both investments and transactions.
2. Security Is A Must! The digital world is a place which is largely infested with hackers and mischief mongers trying to hack into your accounts or break codes for monetary gains. Frauds related to FIAT currency are so common and there have been a handful of incidences with cryptocurrency too. Therefore, while choosing a cryptocurrency exchange for yourself, check for the safety features that they provide.
The wallets provided by many of the cryptocurrency providers are encrypted with a code like that of Indus Coin. Here, when you make a transaction, it can be done only through a mathematical code known only to you and differs with each transaction. This code becomes a part of the blockchain and each transaction is noted down in this public ledger. You can view your account balance and your transactions with your basic safety features, but transactions and trading cannot be done so simply. This process blocks hackers and Trojans and keeps the money in your crypto wallet safe.
3. ‘Easy To Use’ Option Is Always Better The concept of cryptocurrency is new but it is extremely simple as of now. Transactions happen over the internet and there is no third party involved making the chain really small. While choosing your cryptocurrency exchange, there are two points of convenience that you must consider. The registration part on the cryptocurrency exchange must be simple and the interface must be user friendly. This precaution is mostly taken by everyone. What gets missed out is the next part, the liquidity part.
The cryptocurrency exchange must also provide ease of buying/selling or trading in the market. You may check for feedback online or take a quick check from someone who is also using cryptocoins as an investment tool.
4. Check for trading fees Trading fees is the fees that exchange levies for routing your transactions through it. Now, there is no doubt that using a cryptocurrency is the safest option for using cryptocoins. What you can check is the trading fees of some of the cryptocurrency exchanges that fit your criteria.
If the exchange is really serious about holding its customers, you will find the information on the website itself. If you do not, do make a query through email and get your questions answered before you take the final call.
5. Check for Customer Service Support The trading part of cryptocurrency is precarious. It requires a lot of attention to detail in the short term and you need to constantly track it. In the process, you may also at times find misleading information. There could also be times when someone claiming to be an expert tries to misguide you. Since the entire process is digital, sometimes there may be an error in transacting that you may face and pseudo anonymity of the user may lead you to press the panic button. For all this troubleshooting, always go in with a cryptocurrency exchange that offers you 24X7 customer support service for e.g. www.induscoin.info.
Cryptocurrency exchanges, like the currency, are also evolving. You may find a lot of common features and a lot of unique features in cryptocurrency exchanges in the process of zeroing on the best one for yourself. Just be safe and do your research thoroughly to avoid fraudsters.