The world of cryptocurrency sees new entrants in the market every other day. This has given rise to a number of exchange platforms that offer various services and make trading easy for people. If you’re looking for a cryptocurrency exchange in India, there are several things to keep in mind before zeroing in on one. Apart from trading, there are multiple things that have to be taken into consideration such as which platform to opt for, which currency to choose and how much to invest in. Let’s take a look at a few of these factors.
1. Choice of Cryptocurrency
The amount of tokens available for trading varies greatly across exchanges. If you’re a beginner trader, you’re probably just interested in Bitcoin and a few other popular currencies, so a large variety may be too much for you. If you have been investing for a while and have the time to experiment, an exchange with a variety of coins, even the lesser known ones will be ideal.
2. Safety and security
The biggest thing that matters when it comes to cryptocurrency is security and anonymity. Make sure that the exchange you choose hasn’t had any security issues in the past. Two-factor authentication (2FA), encryption, and cold storage are all security measures to look for in an exchange platform.
Also Read: Has Bitcoin Reached Its All Time Low? Here’s Everything You Need To Know About The Crash
3. Fees and Pairs
Fees and currency pairings are two important variables that define various exchanges. Most exchanges will charge you a fee for your transactions; this cost may be based on the quantity of the transaction, it may be based on your level of activity, or it may be unrelated to either of those variables. Before choosing a crypto exchange, learn about the costs you might incur with each transaction. If you buy ethereum in India, you will be charged a gas fee so make sure whichever cryptocurrency you choose won’t affect your profit margin.
Another key factor to examine is the cryptocurrency pairings that your exchange provides. Most of the world’s most prominent and profitable exchanges, only provide a limited variety of digital currencies to its consumers. If you’re looking for offbeat currencies that are not widely known then opt for an exchange that provides those. Keep in mind how your personal investing habits may interact with the features (and restrictions) of any exchange you may utilize.
Also Read: How to trade ETFs in Singapore’s stock market
4. Legality
Is it legal for you to use that particular exchange in your own nation and state? If you don’t see an exchange in your state right now, keep a lookout for new and emerging platforms. On the other hand, if you’re utilizing an international exchange, keep in mind that legislative changes in your country may make it unlawful to utilize one. Platforms are supposed to keep you up to date, yet rapid changes and bad customer support are typical. As a result, it’s a good idea to keep an eye out for yourself. Always make sure you read the fine print that comes within the exchanges as well.
5. Options to buy and sell
You may fund your account and purchase cryptocurrency by transferring money from your bank account. You may also pay with a debit or credit card. Some platforms may enable crypto-to-crypto trading, while others may not.
6. Cash Wallet
Not every trading site includes a cold wallet for storing your crypto assets. It may be easier to manage your money and trade on the same platform. However, if you have a substantial quantity of cryptocurrency, you should consider using an external cold wallet for increased protection.
Also Read: Singapore’s best forex trading strategies
7. Interest or rewards
Some crypto platforms, like conventional bank accounts, give incentives on your holdings to encourage you to maintain your money on their platform. When you retain a minimum amount in certain accounts, you may earn up to 10% on specific coins. Your assets, unlike conventional bank accounts, are not guaranteed by the Federal Deposit Insurance Corporation (FDIC). There’s no assurance you’ll get your money back if the crypto platform collapses.
8. Apps for mobiles
While cryptocurrency may be the money of the future, not every site is on board with current technologies. Without having to navigate a clumsy mobile website, a sophisticated and user-friendly investing mobile app may enable you to maintain your crypto account and execute trades on the move.
Also Read: The Basic of Personal Finance
9. Provide excellent customer service
Customer service on cryptocurrency platforms isn’t always the greatest. This is unfortunate because just in case something goes wrong with your account or you have questions or doubts, you’ll need an exchange that can react promptly to your demands.
With all of these factors in mind, choose a cryptocurrency platform that aligns with your trading goals and objectives and start building your own cryptocurrency portfolio.
