Cryptocurrency exchanges are important if you are looking at trading
your cryptocurrency. Make sure you go in with the right one that helps you
grow your money in the best way.
The acceptance and usage of cryptocurrencies have increased manifold in
the last 5 years or so. There are more and more investors as well as
merchants who are opening up to this concept of digital money. It all
started in 2009 when Satoshi Nakamoto designed bitcoin and released a white
paper by the same name describing its implementation. It took on from there
on but for the ‘belief’ to set in, it took about 5 years. Since then,
there has been noticeable traction each year with cryptocurrency
registering a 1200% growth in the year 2017.
Investments in cryptocurrency have increased and as a result of that, a
lot of cryptocurrency exchanges have also mushroomed. A new investor can
easily get confused if he decides to invest in cryptocurrency. Under such
circumstances, you not only want your money to be safe but also want a
trustworthy cryptocurrency exchange that can guide you for your
investments. Robust tracking mechanisms, on-time updates and prompt
customer support system, all go into making a cryptocurrency exchange
reliable. Talking about trust, Indus Coin is the name that pops up and in
the recent times, it has really established its credibility through
building trust across its customer base.
While looking for a cryptocurrency exchange, here are some factors that
you must consider/check before making your decision:
1. Trading options and fees
There are many versions of cryptocurrency that you will find in the
market like Bitcoin, Altcoin, IndusCoin and so on. While choosing your
cryptocurrency exchange, you must find out the options that your exchange
provides and the cryptocoins that it has in circulation. Trading can be
done between pairs and you need to find the platform that enables you to
do. Once that is found, you must check the liquidity of the exchange for
that pair. If this is high, it means that you will have higher chances of
selling your coins without having to cut prices.
A fee that is levied by cryptocurrency exchanges for enabling trading is
another important aspect that cannot be ignored. Typically, exchanges
charge some percentage of the amount being traded as their trading fees.
This is mostly always less than 1% with the lowest being around 0.2%. Do
remember to check this aspect but not get carried away by this only as many
fraudulent companies would like to capitalize on this aspect to get
2. Safety and security features
Since the money is ‘digital’ and there is no guarantee/warranty
attached to it, it exists totally at your risk. Since there is no financial
institution, Government or bank taking the liability, your money is really
out there all by itself. You need to keep it safe and secure. However, a
good cryptocurrency exchange would ensure that this happens and your money
stays safe with them.
A safe cryptocurrency exchange would most definitely have PGP encrypted
mails, email and SMS alert systems and 24/7 wallet monitoring. One such
cryptocurrency exchange is www.induscoin.info that provides you with
encrypted wallets. While you do not need to access your wallet through a
unique code every time, you do need this encrypted code to make any
transaction from your wallet. Although wallets have been made safe from
hackers and Trojans, it is still advisable to keep only a small amount of
your digital money in your wallet and not in excess.
3. Supported currencies
Cryptocurrency exchanges are not dependent on location of their users in
any way. Since any one across the world can gain access to cryptocurrency
and subsequently to these exchanges, you need to check the currencies that
the exchange supports. For e.g. some cryptocurrency exchanges may only
support dollars for their various payments and you may end up losing a
large amount of money for this conversion. Not just this, the trading pairs
of cryptocurrencies also must be as per your convenience and comfort level.
Always check for cryptocurrency exchanges that support all payment
methods like debit cards, credit cards or bank transfers for both payments
4. Purchase limits
Since cryptocurrency exchanges only exist in the digital space, they are
at a constant risk of hackers. A reputed exchange like Indus Coin may hold
millions of dollars at a given point of time and even if 99% of it is kept
offline, the 1% that is online is at a risk of getting hacked. That is why
all cryptocurrency exchanges set limits for its customers.
There are limits for deposits (minimum and maximum) and withdrawal.
While some exchanges keep it constant, others keep changing it depending on
your activity and transaction levels. There are also legal documents that
they may ask as proof for setting your limit. Make sure you understand this
aspect of cryptocurrency exchanges before you decide upon one for
5. Convenience and support
Volatile is the word best used to describe cryptocurrency and hence
assurance is much needed when you deal with a volatile commodity. Hence,
while looking for a cryptocurrency exchange you have to look for ease of
usage of the portal. The interfaces should be user friendly and convenient
to navigate. There should not be unnecessary and additional steps that keep
your digital currency exposed to hackers during that period. Make sure you
take feedback of the website from other users before you register
Customer support is also an aspect that is much needed. There are
cryptocurrency exchanges like Indus Coin that offer a 24X7 customer support
system and this is essential for everyone who is taking baby steps in the
world of cryptocurrency.
Reputation of the cryptocurrency exchange and its overall approach to
business are also overarching parameters that come into play while choosing
a cryptocurrency exchange. All that you have to do is be cautious at all
times and take deliberate and well informed decisions.