How to Choose Cryptocurrency Exchange?
What is Cryptocurrency exchange?
It is a digital marketplace, designed to buy, sell or trade different Cryptocurrencies. Every exchange has their own exchange rate which is not equivalent to each other – thus there are many factors that come into picture while deciding on digital currency exchange.
Mode of Payment:
Since Bitcoin price has surged recently, i.e. above $4500 many investors are seeking to invest in crypto market. In this regard, Bitcoin exchanges are essential for trading bitcoin effortlessly.
One of the key constraints to look into crypto exchange is the mode of payment they consider. Few exchanges allow you paying via debit card, few allows via credit card which typically affects the exchange rate.
In order to prevent substantial amount of risk, it is vital to know the liquidity that exchange has. The liquidity is however an ability to sell without the price being significantly affected and causing price decline. Furthermore, increase in the number of buyers and sellers are likely to increase the liquidity of exchange. It can be analyzed by the volume of Bitcoin Exchanges at that particular point of time.
Nonetheless, one cannot measure the price of cryptocurrencies on the day he wants to invest or sale, consequently it is important to look over the fees it has set for trading. This factor is to ensure that you are not exorbitant as compared to other marketplace.
Though, there are three types of fees “Network/Miner fees, Conversion fees and Maker/taker fees, these are varying from exchange to exchange and can fluctuate overtime.
Security and safety
Being assured on security of exchange is one of the paramount aspects. Ensure that, it must have a secure protocol with two factor authentication which provides secure login.
These are few factors crucial on choosing marketplace to invest, sell or trade bitcoins or virtual coins.Bitoye has set itself apart as the most reputable and secure marketplace which offer its exchange service at extremely low fees. The team at Bitoye ensures transparent and quick transactions with higher liquidity.