Choosing the right cryptocurrency exchange is not an easy task. There are many factors to consider, including security, liquidity and fee structure.
If you’re thinking about buying Bitcoin or another cryptocurrency for the first time, it’s important to use a trusted platform that offers good service and protection. For example, check Swyftx review by Coin Culture to get an idea about this quality exchange. Here are some common mistakes to avoid when choosing a cryptocurrency exchange:
Don’t choose an exchange based solely on its location
Some exchanges are licensed in certain territories and not in others. It’s important to check if your desired exchange is licensed in your country before signing up. If it isn’t licensed in your area, there’s a risk that your funds won’t be protected by local laws, which could mean you lose them if things go wrong with the platform
Avoid anonymous exchanges
Some exchanges allow users to trade anonymously, but these platforms are often considered risky because they don’t require ID verification from their users or provide any information about them at all. This makes it harder for anyone using such an exchange to recover lost funds if something goes wrong with their account or account balance.
Not checking user reviews first
Hundreds of exchanges are out there, and some have better reputations than others. Before you sign up for an account at any exchange, check out reviews from other site users. If no reviews are available, go for information about the exchange before signing up. Be wary of exchanges that have bad ratings from previous customers because they might not be trustworthy or secure.
Not keeping your private keys safe on your own hardware wallet. If you’re holding any cryptocurrency off an exchange (i.e., not in a custodial wallet), then you need to keep your private keys secure somewhere else — ideally on a hardware wallet such as Ledger Nano S or Trezor. Hard wallets are the safest way to store your coins because they’re offline and never exposed online; they also make sure that nobody can access your account without physical access to them.
If you can’t withdraw fiat currency from your account, you don’t have access to your money. If an exchange won’t let you withdraw fiat currency from your account, it’s a huge red flag.
Exchanges that don’t allow withdrawals are bad news because they could be insolvent or even fraudulent — it could be a sign that they’re just waiting for everyone to cash out so they can run away with everyone’s money. You should only deal with exchanges that allow users to withdraw their funds from their accounts in whatever form they want (fiat or crypto currency).
There are several things to consider when choosing a cryptocurrency exchange. For example, what is the history of the platform? Does it have the features you need for trading and storing cryptocurrencies? Is the reputation of the company good in the industry? Make sure that you do not make a mistake at all.