8. Guide on selecting Cryptocurrency Exchange for trades:
Cryptocurrency exchanges are online trading platforms or marketplaces that allow users to buy and sell cryptocurrencies for other assets, such as fiat money or other crypto coins.
Importance of Regulated Exchange
An exchange that is regulated is important, because the more regulated the exchange is, the more the exchange is checked for frauds. Stringency of new account registration is a sign of how regulated the exchange is. Imagine trading with other traders in an exchange that ask for nothing but your name and email address for account creation as compared to an exchange that ask for users’ mobile number, identify card, passport, bank or income tax statements plus a newest picture of you holding these identifies with dates etc and take days to verify these documents, which exchange do you think will have a trading system and traders that are authentic and can be accountable to the law if they hack, run fraudulent activities, manipulate the market etc?
Exchanges do not like to put too much requirements on user registration because it limits the number of traders they can sign up and make money. They will only do it if regulations dictate them to, you can believe they will not try to fake the difficulty of account registrations. So try not to grumble too much when it takes too much effort for you to register an account.
The country that the exchange is located in
It is similar for the country that the exchange is located in. Crypto exchange based in a country that is lawless, less restrained by the law, highly corrupted, or with less political reason to regulate the crypto market, will less likely abide by the law. Thus, do your research on the country of whatever exchange you are interested in.
Research on the security features available on the Crypto Exchange
Use a secure trading platform or exchange which has robust security measures, desirable security features include:
Two Factor Authentications
High Transaction Speed Capability
SMS or email alerts
Use a successful exchange with very high trading volume, high liquidity and makes huge profits from transactions fees. A successful business man will likely keep his highly profitable business vs scamming, ruining his empire and becoming an outlaw.
Huge volume trading exchange is much harder to manipulate as well. One of the messages revealed by insiders showed a big pump and dump groups broadcasting to their group members to try to avoid Exchanges with huge volume because there are too many whales there. [ View Volume Ranking by Cryptocurrency Exchange ].
Google for Exchange news
Regularly google and search for crypto exchange news, an exchange with a lot of doubts, suspicion or complaints will appear in the searched news. Only pay attention to news from reputated news sites, not any crypto-aligned website. There are fake news everywhere, be vigilant.
Exchanges that have a history of survival records from hacks, attacks, brought down and recovered are signs that they are experienced and hardened. People and organizations learn from experience, especially from mistakes or setbacks. If they can survive and recover, you can bet the exchange will be better prepared and equipped for the next possible danger, with their employees well drilled and systems hardened.
Examples of Exchanges that had gone through the thick and thin
Binance Cryptocurrency Exchange - Binance is an international cryptocurrency exchange that supports at least 10 different languages, it was founded in 2017 by present CEO Changpeng Zhao. Binance issued its own token called the Binance Coin (or BNB) and the coin runs natively on the Ethereum blockchain following the ERC20 token standard. Standard trading fees on Binance is only 0.1%, one of the lowest in the cryptocurrency market, but Traders can receive a further 50% discount on trading fees (which become 0.05% trade fees) just by having a balance of BNB token in their Binance account sufficient enough to pay off the fees, the system will automatically deduct from the BNB balance of the users equivalent to the trade fees amount everytime he/she completed a trade in Binance. Binance Coin was initially established with a total circulating supply of 200 million and reached cryptocurrency market cap of more than $1.5 billion USD as of 2nd May 2018.
As per Binance whitepaper, Binance plans to use 20% of its profits every Quarter to buy-back and burn off the Binance Coin circulating supply, until 50%(100 million) of the total BNB supply is burned. On March 2018, Binance team officially announced that Binance Centralized and Decentralized exchanges will co-exist in the near future and Binance Chain development was launched, meaning Binance will have its own Blockchain upon completion with its BNB tokens upgraded to exist on the upcoming Binance Blockchain and become a native coin. Binance is the largest Cryptocurrency Exchange in the world by trade volume as of 5th May 2018 with around $2.6 billion traded daily . Start Trading at Cryptocurrency Exchange Binance
Bittrex Cryptocurrency Exchange - US-based cryptocurrency exchange headquartered in Seattle, Washington.
Coinbase Cryptocurrency Exchange - Headquartered in San Francisco, California. A popular exchange for traders to trade fiat money with crypto coins.