How to Choose A Legitimate Cryptocurrency Exchange to Make Profits – Vestigo Finance

The value of cryptocurrency is skyrocketing globally. However, the cryptocurrency industry is not very securely regulated. Many cryptocurrency exchanges are sprouting rapidly all across the world.  

As an investor, it is crucial to choose a legitimate cryptocurrency exchange. Once you nail this crucial initial task, you are on your way to a profitable cryptocurrency investment. Otherwise, you may risk vulnerabilities and cyber-attacks. In 2018, over $1 billion was stolen from cryptocurrency exchanges.

It would be best if you chose a safe exchange to make profits securely. For instance, Swyftx is a legitimate exchange. But how do you choose a legitimate cryptocurrency exchange to make profits? Read on to find out.

Research the Exchange’s Authenticity

Reputation matters while choosing a cryptocurrency exchange. Be aware that to create your account with an exchange, you need to share your private information. It is essential to disclose your details only to a legitimate exchange. Make sure to research the exchanges that you shortlist before engaging with them.

You can start by finding out what other users have to say about the cryptocurrency exchange. Browse online to read the reviews or ask for recommendations from your peers, family, and friends. Ensure to inquire if there were any security issues. Has the exchange addressed the problems adequately?

Look out for any negative stories or online scams. Thorough research can help you select a legitimate and secure exchange platform. Additionally, check whether the exchange can protect investors from fraud.

Be Cautious of Fee Structures

Besides ensuring authenticity and security, you have to consider if the exchange will significantly impact your investments. The two factors you need to check are the currency pairs and fee structures that the exchange offers.

Most of them include a fee for any transactions. It depends on various aspects such as your transaction size, your activity levels, or some other components. Make sure to know the fee structures beforehand.

You have to assess how they can impact your cryptocurrency investments. Does it work for your style of investing? Do you intend to be very active by making transactions daily? You may look for lower transaction fees if you prefer investing every day.

Compare the fee structures of different exchanges to choose the secure one that can help in making profits.

Choose Higher Security

Each cryptocurrency exchange comes with its security measures. It is essential to check if their security methods are reliable and adequate. Make sure that the exchange provides two-factor authentication. Otherwise, the exchange may not stand along with today’s efficient security standards.

Moreover, check if the two-factor authentication is compatible. Authy, Yubikey, and Google authenticator are some of the most common authentication avenues. They provide better security.

The cryptocurrency exchange’s storage must also have efficient security. Check if the exchange’s custodial storage and asset reserves are secure. It also helps if you keep most of the digital assets in your offline storage, such as cold wallets.

Decentralized exchanges also emphasize security. They cut out any centralized and vulnerable middlemen. Users can directly connect and place or fill orders. Additionally, you do not have to reveal much of your personal information.

Liquidity and Volume

A larger trading volume usually serves as an indicator of an exchange’s liquidity. You can find out its ability to fulfill your orders during the day, regardless of how small or big it is. It also shows positive signs of being a legitimate cryptocurrency exchange.

Liquidity determines your crypto purchasing and selling ability as well. Additionally, you stand a better chance to gain more profits. Most centralized exchanges are liquid and fast platforms. They offer a larger volume, and you can fill your orders within seconds. They work best for core cryptocurrency trading pairs such as bitcoins.

If you want to trade and purchase smaller coins, you can pick smaller exchanges or decentralized ones. The fee structures here are not excessive. By checking an exchange’s liquidity and volume, you can know its support and reputation better.

User Experience

The functionalities and user experience of a cryptocurrency exchange are other critical factors to assess. If an exchange has a good user experience, the transaction volumes also increase. Some platforms offer free tokens to their users. Such offers can help boost your profits.

Make sure to check if the exchange is fully transparent. It is beneficial if the exchange publishes the addresses of their cold storage. Audit information regarding the verification of asset reserves can also help to prove their legitimacy. It assures you that the exchange can cover the sales.

Many investors and traders seek to invest in cryptocurrency. It is crucial to pick a secure exchange. For instance, Swyftx is a legitimate exchange. Make sure to check for the above factors before choosing your cryptocurrency exchange.

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SOURCE Vestigo Finance

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