Cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Dash, and Ripple, have reached mainstream consumers’ consciousness because of their unique decentralized nature. The primary appeal of this alternative medium of exchange is that no central entity controls the processes. Everything is done peer-to-peer.
With its rising popularity, a lot of companies have created platforms where users can buy these digital assets using fiat or real money. Then, you can sell and trade cryptocurrency on exchanges according to the market value.
To find the best platform for your needs and preferences, you can check out this list of the best cryptocurrency exchanges in 2020. Read through the reviews and assess each site’s strengths and weaknesses to find the one that suits your style.
Meanwhile, here are the reasons why you should compare cryptocurrency exchanges:
- Find the Best Deals
If you’ve ever shopped online, you know that you should look for the e-commerce store that offers the best price on the item that you’re eyeing. It’s a practical way of getting the most out of your money or investment.
Similarly, you should research cryptocurrency exchanges and compare them with each other so that you can find the best deals. Some platforms provide a better market value than others, while there are those that have relatively lower service fees than their competitors. Although, you can generally expect minimal fees, even with cryptocurrency brokers, compared to the traditional stock market.
- Transfer Crypto Securely
Another factor to consider when comparing cryptocurrency exchanges is the site’s security protocols that have been put up to safeguard their users’ digital assets. Before you sign up on a particular platform, you should ensure that they have defenses in place to deter cybercriminals from stealing your data.
A lot of people are slowly leaning toward buying and selling cryptocurrency as an investment. If you’re thinking about going down this road, you should prioritize the safety of your cryptocurrency, from storing to trading. Study the possibility of cryptocurrency crashes as well so that you can prepare to mitigate the risks.
When looking for a cryptocurrency exchange, you should opt for a platform that’s registered with the government so that you can be sure that they operate legitimately. A regulated exchange doesn’t compromise the cryptocurrency’s inherent decentralized trait even if it’s overseen by a central agency. It only serves to protect consumer interests.
It’s wise to compare cryptocurrency exchanges because this medium of exchange is relatively new and can be daunting to investors. Plus, there have been unfortunate incidents, like the mismanagement of Mt. Gox and the hacking of Coincheck in 2018, where cybercriminals got away with 530 million USD. Both exchanges were based in Japan and the massive losses resulted in the government imposing more stringent regulations on crypto exchanges.
The most recent case in the US was in March 2020 when two hackers were charged with stealing nearly 250 million USD between July 2018 and April 2019. They engaged in a money laundering scheme before hacking the platforms. The cryptocurrency exchanges weren’t disclosed in the court files.
Find a cryptocurrency exchange and read about the security measures they have in place to ensure the protection of your digital assets.
- Get Ultimate Functionality
Comparing cryptocurrency exchanges also give you an overall idea of the similarities and differences in the platforms’ features and functions. Most of them allow you to buy, sell, and trade digital assets with other users. But the key differences lie in their exchange rates, restrictions, and verification process.
Also, some platforms are only accessible to specific regions or countries, so you should confirm if you can register on the exchange so that you won’t encounter problems in depositing and withdrawing your cryptocurrency.
- Enjoy Convenient Cash-Ins
Lastly, one significant difference among cryptocurrency exchanges is their cash-in process. Some allow you to deposit fiat money in exchange for crediting its equivalent amount of cryptocurrency in your account. For this type of platform, you must compare their rate of conversion with other sites.
Other platforms, though, only accept cryptocurrency cash-ins. Nonetheless, they do allow you to convert different cryptos, such as depositing Bitcoin to purchase Ethereum or Ripple. Again, mind the conversion rate for the site to ensure that you get a good deal.
There are a lot of cryptocurrency exchanges online, and you should compare them so that you get the most out of your investments. You must consider their market prices and exchange rates, security protocols, features, functions, as well as cash-in processes and ensure that they cater to your needs and preferences as a user.
Disclaimer: This content does not necessarily represent the views of IWB.