Questions to Consider Asking Your Cryptocurrency Exchange

Choosing the right exchange is one of the most vital steps you need to take in order to invest smartly in cryptocurrencies. Here are some questions to guide you while making a decision.

By Staff

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A cryptocurrency exchange is an online marketplace where users buy, sell, and trade cryptocurrency. Some of them include Binance, Kraken, Coinbase, Bitfinex, HiBTC, yellow card, Poloniex, Bittrex among others. Choosing the right exchange is one of the most vital steps you need to take in order to invest smartly in cryptocurrencies. To help you do this well, it is important to understand the questions that you should ask them.

1. What coins do the exchanges include?

This is a crucial question because the cryptocurrency market is fast-paced, with new coins being minted on a regular basis. Furthermore, not all exchanges use the same currency.

2. Is it possible to convert fiat currency to cryptocurrency and vice versa?

Some exchanges allow you to convert your money into cryptocurrency and vice versa, while others do not. For example, according to the Coinbase review, fiat can be used to buy any one of four different cryptocurrencies that they provide. Some exchange platforms do not support some fiat money such as Uganda shillings and one has to first exchange to US Dollars, particularly in order to successfully trade for example Altcoin and Kraken.

3. What payment methods are accepted?

This is a critical concern as well. Some exchanges allow you to fund and withdraw your account using PayPal, as well as bank cards, transfers, and other methods. Others have significantly fewer options in this regard.

4.  How much fees are charged?

The last thing you want is to see your funds eaten up by fees. This amount varies a lot from one exchange to another. Before you begin, make sure you know how much you will be charged in fees.

5. Is a mobile version available?

Because of the simplicity, it is becoming increasingly common for bitcoin investors to shift money around using their mobile devices. In this instance, you’ll need to use an app or a mobile-friendly website to exchange information.

6. What kind of customer support is available?

 One of the most common complaints among cryptocurrency investors is the inability to resolve difficulties quickly. As a result, it’s a good idea to find out how to contact them and how other customers assess their service.

7. What are the transaction limits?
Do you intend to invest a ton of cash in cryptocurrencies? Some exchanges have relatively low transaction limits, making large trades impractical. You must select an exchange that matches your demands, whether you want to buy Ethereum, Bitcoin, or another coin. When you use Bitstamp, for example, you’ll see that once you reach $10,000, you’ll be asked for a lot of personal information.

8. How do you safeguard my funds?

What are the security measures in place at the exchange? In the finest exchanges, two-factor authentication is standard. Because it is evident that cryptocurrency users are being targeted by hackers, you should select services that secure you.

9. Is it necessary for me to have a second wallet?

Is this solely an exchange or do you have the option of storing your currencies here as well? In this regard, there are a variety of approaches to take, so make sure you understand what you’re doing before you begin.

You will be able to buy cryptocurrency without fear of the unknown after you have the answers to these crucial questions.

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