If you want to purchase any crypto coin except Bitcoin, you need to begin with crypto exchanges. They are the platforms where you can trade digital coins with other coins as well as other fiat currencies. Most of the exchanges operated outside the countries to avoid regulatory oversight and prosecution. As of 2018, regulation of digital coins and its trading in many countries remains unclear. Many regulators are still bearing in mind how to deal with these sorts of businesses.
Finding the right exchange platform
So if you need to pick the best crypto exchange platform as per your needs, it requires to go through numerous factors.
· Reputation
It is the best way to check out about an exchange platform by searching through individual users as well as reputed sites. There are plenty of forums available such as Reddit or Bitcoin Talk if you want the answer to your query.
· Security
If a trading platform that you choose is not safe, there is a risk of fund stolen. A secure exchange must offer their customers banking grade security to their fund and sensitive personal information with an encryption technique.
· Liquidity
Higher liquidity is equal to higher trading volume. It helps to make trading process swifter with great ease. There is no need to deal with major changes take place in crypto prices.
· Verification
Almost every trading platform demands only few ID verification for deposits and withdrawals. Some exchanges let the users stay anonymous. It may happen that some exchanges take a couple of days but it safeguards from multiple fraudulent activities.
· Legal phases
It’s suggested you utilize a trading platform from the same country you are based in. It helps to meet the terms with the regulatory changes. You can also use other exchanges as well. But keep in mind that some trading platforms support only a limited number of countries.
· Charges
Almost every trading platform comprises charges regarding details on the sites. So before you link with any of the exchange, assure the charges of deposits, transactions as well as withdrawal. Compare different charges. It can vary significantly liable on the platform you utilize.
· Transparency
Check out either an exchange platform is revealing its owners or team members. If a platform is completely transparent, it will also publish addresses stored in cold storage and enable others to check auditing information as well. So just keep that much fund on the platform you need for trading. Store others in your crypto wallets for safety.
· Payment procedures
Check out different payment available on the exchanges such as credit/debit card, wire transfer, PayPal and much more. If a trading platform is offering only limited option, it’s not that much convenient to utilize the platform.
· Technology
Web address of a platform should contain https:/. For a log-in purpose, it should utilize two-factor authentication as well. Cold storage must be there to store customer deposits. There must be auditing programs which keep monitoring activities 24/7.
Placing big order
CEB protocol: This is a cutting-edge solution for the crypto trading platforms. It can also know as an arbitrage solution. There are around 200 crypto trading platforms and the currency spreads sluggish the procedures. Another issue different exchanges are facing is the lack of the liquidity. CEB protocol overcomes both issues, linking exchanges. CEB will enable to close a transaction including as many trading platforms as required.
Let’s assume a big order on the “XYZ” exchange. The DOM might face the issue of sell orders’ lacking. Then the platform might automatically link by utilizing CEB to every participated platform and will catch the sell orders to accomplish the request. At that point, a transaction will be shut. CEB server pledges to clear of interexchange at the end of the day.
Exchanges will stimulate growth in developing countries
As per the crypto news, Malta is not the one country seeing to attract digital coins. France is also observing to be the part of a revolution generated by the blockchain technology.
France is looking to generate an authorized framework. This would enable French organizations to raise funds via ICOs if they keep an eye on specific guidelines. The reality is that the people around the world have mixed thought on how to treat virtual currencies. Some countries such as Malta are approving the acceptance of it and other countries are banning it.
Just for an idea of how split the world is, here is a map from Bloomberg showing the regulations in each country.
In the above image, you can see that China has been going down on crypto coins. Last year it prohibited ICOs as well as trading of virtual coins and targeted crypto miners.
Yet, according to CCN.com, the new governor of the Chinese central bank, Yi Gang, is pretty positive on bitcoin. As he stated that, ‘bitcoin is a currency that provides freedom to anyone that uses it.’
Learn about security
There are plenty of examples that hackers as well as scammers, can access digital coins. In some circumstances, a malware will get to it and whatever fund you have stored on your wallet will disappear within seconds. Keep in mind that if you lost your fund, no one is authorized to return it.
Here are some guidelines to consider when it comes to secure your digital currencies.
· Avoid use of Web Wallets
· Limit the access to corporate crypto wallets
· Isolate your coins to Hot and cold wallets
· Store private keys offline and make use of dedicated hardware
· Utilize Linux on online as well as offline systems
· Keep continuous backup offsite with highly Secure
· Make use of fragmented backups as well as hardware wallet
Summing up
If you are thinking to take dive in the crypto ecosystem, it’s important to raise queries about different policies such as security & cold storage policies, and other crypto related terms.
This may be quite complex to some who are just fresher for crypto space. However, it’s necessary to get knowledge about security at the moment you get linked with the digital world.