There are many factors and features to consider when cherry-picking a cryptocurrency exchange to use. Several beginner digital asset users and investors are in the dark on how to begin trading and buying virtual currencies.
So, it’s extremely important for both fresh and seasoned investors to inquire and ask queries before proceeding. Here are key factors to consider when cherry-picking a digital currency exchange (DCE), irrespective of experience:
1. Geographical Location & Restrictions
The majority of cryptocurrency exchanges have a narrow geographical scope of people who they cater to. So, an investor has to make sure before signing up for a cryptoasset exchange that it is easily accessible from their home country (and is legitimate). As cryptocurrency and blockchain technology regulation and other key policies are underway, there’s a possibility that your country will crackdown your opportunity to access and use the exchange.
For instance, Binance, the biggest DCE by volume globally, is open to all nations, apart from all those on economic and trade sanctions lists like Syria, North Korea and Iran.
2. Authenticity, Security, Anonymity and Support
You should carry out thorough research to ensure that you are selecting a genuine, legitimate, secure and reliable platform. The previous examples of hacks such as Mt. Gox, Coincheck, DragonEx,Cryptopia, CoinBene, serve as solemn warnings to potential crypto investors to delve into the exchange’s security protocol.
Currently, the digital currency sector faces various issues including the Ponzi, pyramid, pump-and-dump schemes, etc. But it’s upon all DCE platforms to fight these forms of fraud. Most decentralized exchanges put emphasis on security and anonymity. They enable users to sign up minus giving any personal data and creating a private recovery seed.
Here are key factors to consider when cherry-picking a digital currency exchange (DCE), irrespective of experience:
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