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Like it or not, everyone today needs to be in on the cryptocurrency wave in order to keep their life afloat. Either you want to be a trader or an investor who holds on to currencies for the long term, and nobody wants to be left behind in the cryptocurrency revolution. There are many scammers and fake Cryptocurrency Exchange platforms looking for inexperienced cryptocurrency users to cheat them out of their money. Even if you’re a more experienced player, you’re probably familiar with these crooks.
While knowing about their activities is helpful, it is not the same as identifying and evading the bad actors when they come to you. Even veteran cryptocurrency players are not immune to these guys’ grasps. But before you begin to sweat, please be aware that we have provided a thorough and detailed guide on how to defend yourself from their attacks.
Knowledge about cryptocurrency exchange is essential for those new to the crypto game. Another thing to keep in mind is the size of the exchanger and the safety of its asset holdings. Here, we have done everything we can to give you all the information you need to make an informed decision about which exchange you should use.
Our goal is to secure your cryptocurrency and keep it out of danger. In order to do this, we’ll only present the exchanges we’ve personally vetted. In order to determine if an exchange is large enough, first decide whether or not it is critical to one’s trading strategies.
How to Identify if an Exchange is Good Enough or not
People who are new to cryptocurrency sometimes make the mistake of only searching for exchanges based on their portfolios. They make this mistake because they fail to grasp the roles that liquidity plays in the services exchanges provide. Having a high trading volume exchange-traded option in your portfolio means your portfolio is very liquid. Because of its high trading volume, it will be easy to buy or sell crypto assets as long as there is constant trading happening on it. Traders are ready to be bearish or bullish on the other side of any transaction you propose at any time.
This should reduce transaction fees significantly because there will be less demand for your coins due to lower trading volume. You will come across multiple exchanges, all of which will claim to have enough liquidity, but you must know that not all of them are completely honest.
While other exchanges, such as Binance, Coinbase, and Reddit, have solid track records for liquidity, their trading volume is relatively low.
There are several ways to Select Best Cryptocurrency Exchange Platform
Your new level of awareness is focused on the shady exchanges at this point, and you may be wondering how you can tell which exchanges are safe or not. This is why we put forth three critical considerations when making an exchange choice. This exchange is not appropriate for you if any of these elements are missing:
Security:
It is a pretty effective way for an exchange to secure itself from cybercriminals who might try to hack it by keeping a large chunk of its crypto assets in cold storage. If some of its assets are saved offline, then the exchange can ensure that it has your best interests at heart. This means that if your wallet gets hacked and your funds are taken out, your money is safe in your wallet.
Storage:
The amount saved offline is just as significant as the amount saved online. To emphasize how critical it is that you use 2-factor authentication and a strong password, we can’t stress enough how important the password you use is. You should avoid exchanges that do not require two-factor authentication to gain access to your crypto portfolio and which will not bar the use of weak passwords when registering. That means you can trust the security of your assets with this exchange only if you assume it won’t care about your safety.
So, in doing so, you will be doing yourself a big favor.
Well-secured connection:
A reliable indicator of a less secure exchange is to examine the URL of the website. HTTPS will be established as the foundation of a secure website. If you see “HTTPS” at the beginning of a site’s URL, it means it does not have an SSL certificate. Having this security flaw, any data you insert in it is vulnerable to interception, whether private or otherwise. Thus, if an exchange is unable to provide a secure connection, you should avoid doing business with them.
We suggest doing the following basic Cryptocurrency Exchange Platform:
To take what we have said so far seriously, you must strive to ensure your money and data are safe. However, even if you follow these steps, you won’t be safe. When it comes to protecting your assets, you should never be too careful. This is why we researched the issue extensively enough to provide you with four additional cybersecurity measures that you should bear in mind when getting started with cryptocurrencies.
- Business should only be entered into with a credible exchange. Just as before, the size of an exchange significantly impacts which one a newcomer will choose to join. Also, the greater the volume of an exchange, the more trustworthy it is likely to be.
- Convert public Wi-Fi into free, open Wi-Fi. It would help if you also used a good VPN when using your private internet connection. This is done to keep your personal information secure from other people looking for ways to attack you.
- Protect your device with an antivirus, and always keep your device’s apps and software up to date.
- Strong passwords should be used. Try using passwords that include a mix of numbers, letters, and symbols. Strong passwords mean greater asset security.
- Two-factor authentication is critical. Since this option to use a 2FA to access your account is given to you, you should take it.
Best Licensed Cryptocurrency Exchange Platforms you can Choose.
Picking a tremendous licensed exchange isn’t tricky at all. We searched the web to bring you the five best cryptocurrency exchanges from which you can choose. Each entry in the list is assigned a rating, but they are not ranked. This way, you can choose whichever one you like the most:
- Binance
- Cash App
- Coinbase
- Robinhood
- Gemini
1. Binance
Binance is a cryptocurrency exchange based in Zug, Switzerland, created by CZ, the platform’s founder.
After increased Chinese regulation threatened its business, the company relocated to the Cayman Islands. In the matter of only a year or two, Binance quickly went from being one of, if not the largest cryptocurrency trading platforms in the world, to a powerhouse of crypto, mainly because of its wide array of trading pairs and fees that are more affordable than many of its competitors.
One of the benefits of the absence of KYC (know your customer) rules initially was that it was also appealing to some, though the site has subsequently added numerous KYC policies.
2. Cash App
Recently, the popular Cryptocurrency Exchange Cash App, which helps people invest their money, was expanded to include investment functionality. Cryptocurrency traders see it as a decent way for traders who only want to trade in the most popular cryptocurrency. In addition to its flagship peer-to-peer payments and fee-free stock market investing, it comes with benefits such as cost-free investments and cost-free stock market trading.
If you are looking to connect with other traders, Reddit is a good place to start. People are appreciative of the community aspect, which provides you with an opportunity to pose questions and receive clarifications.
You can use their advice to find a cryptocurrency exchange that fits your needs.
3. Coinbase
The secure online platform for buying, selling, transferring, and storing digital currency is called Coinbase.
Our mission is to develop an open financial system that is accessible to all people, and we intend to be the world’s leading brand for enabling currency conversion. You don’t need to pay any fees when you send or receive digital currency between online wallets, friends, or merchants on Coinbase.
- In addition to handling security and backups, we can help you worry less.
- We’re a “one-stop-shop,” with one simple interface offering a wallet, an exchange, and merchant tools.
- Many applications are being built on our API through the Coinbase platform.
4. Robinhood
Robinhood is well-known for charging no commissions for buying and selling stocks, options, and cryptocurrency. However, before the recent changes in the industry, they were the only game in town that was completely free. Young people who have just begun investing are interested in the app because it appeals to them by marketing that emphasizes “free” and “democratization.”
To a large extent, this tactic has been successful, bringing in a staggering 10 million customer accounts that belong to an unknown number of customers. When they outgrow Robinhood’s meager research capabilities or when the markets become too volatile, what happens to them?
5. Gemini
The exchange Gemini offers its users the ability to buy, sell, trade, and securely store BTC, ETH, and several other altcoins. The Winklevoss brothers, Cameron and Tyler, established it in 2015. There are separate, distinct user interfaces for casual investors and serious traders on Gemini, all of which have varying fees. The Gemini dollar has a mobile app, a payment app, and it has its own currency.
The Gemini cryptocurrency exchange is a direct competitor to established cryptocurrency exchanges like Coinbase and Kraken. Excluding scheduled downtime, the Gemini exchange operates around the clock. On the Gemini exchange, an order filled at the best available market price at that moment is a standard market order.
There are limits to the types of limit orders that Gemini offers. Maker or-cancel (MOC), auction-only (AO) limit orders are also included.
