When it comes to crypto, your funds are never truly safe unless you control the private keys. The crypto exchange is where all crypto transactions take place, whether it be crypto-to-crypto or crypto-to-fiat. So it’s essential to choose a reliable exchange like Swyftx exchange.
Here are a few factors to consider before selecting a crypto exchange.
Location of the Exchange
Where the crypto exchange is based has a lot to do with security. If you’re using an exchange located in a well-regulated country, your crypto will be safer than being held on an unregulated or poorly regulated crypto exchange.
Safety Measures
Security measures should be a top priority for crypto exchanges as they hold large amounts of crypto, and people are keen to make sure to check if crypto project is a scam before they put their money into anything. It’s essential to examine the safety measures each crypto exchange claims to have implemented, such as:
- Two-factor authentication (2FA)
- Multi-signature wallet policy (which requires multiple people/devices to approve transactions) NOTE: for cryptocurrency storage, experts recommend never leaving funds on an exchange instead of transferring them into hardware like Ledger and Trezor.
Exchange Policies
What crypto exchanges don’t want is to be hacked. So they’ve established processes that minimise the risk of hacking. Below are a few crypto exchange policies you should look into:
- Does the crypto exchange hold assets in ‘cold storage’? (cryptos held offline)
- What do crypto exchanges do if there’s a security breach? How are customers’ funds secured?
- How does the crypto exchange compensate users who lose their assets due to hacks or other issues? Is it fully insured against loss? Community Trust
The cryptocurrency lending community trusts some crypto exchanges more than others. Which crypto exchange you choose will be based on how much risk you’re willing to take on when it comes to cryptocurrency storage.
Fee Structure
One of the advantages of crypto is that transaction fees tend to be lower than traditional payment methods. And every crypto exchange out there has its fee structure, so research them before making a decision.
Also, keep in mind that some crypto exchanges may charge withdrawal fees for cryptocurrencies other than what’s listed on their platform.
Tokens Supported
Not all crypto exchanges support fiat, some only support crypto-to-crypto transactions. If you’re looking to buy crypto with fiat or crypto with another cryptocurrency, then you’ll need to find an exchange that supports either BTC (bitcoin) or ETH (ether).
Customer Support
If the crypto exchange is slow to respond to customer questions and complaints, then your experience will be dissatisfying. Therefore, it is important to research which crypto exchange offers the best customer service as it is directly related to the quality of your experience in terms of trading through them and availing of their services.
User Interface and Experience
Your crypto exchange’s user interface (UI) should be as intuitive as possible. If you’re new to crypto exchanges, then finding your way around may be confusing and time-consuming. Therefore, it is imperative to pick a reputed exchange like Swyftx exchange offering a UI that feels natural for crypto transactions.
Wrapping Up
If a crypto exchange has a history of freezing users’ accounts or taking months to approve requests, then move on. Only choose crypto exchanges with a solid track record for security, transparency, and customer service.
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