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Consider This When You Choose A Coin Exchange

29 July 2020 No Comment

It is very important to choose a very good coin exchange or you will be faced with many problems. When the wrong platform is chosen, you can end up faced with a lot of wasted time, distractions, and even hacks. That is why it is so important to think about the following when you want to choose a very reputable coin exchange.

AML/KYC

One of the vital things that you have to know is that different exchanges respect different regulations and laws, based on offerings, practices, and locations. There are many exchanges nowadays that implement AML (anti-money laundering) and KYC (Know Your Customer) practices. Never sign up to an exchange that does not have such practices in place.

The requirements and practices do vary a lot. For instance, in some cases, you need to deal with withdraw limits. In others, as a customer, you are obliged to offer photo identification copies and even proof of residents. It is even possible that customers in some countries are restricted because of these laws.

Reputation

Although many think differently, the cryptocurrency industry is quite young. Due to this, reputation is a very important thing to take into account when choosing a cryptocurrency exchange. There were numerous exchanges in the past that were caught being a part of hacks, exit scams, and nefarious activities.

Always conduct proper research on the different coin exchanges you could become a member of. Learn all you can about their reputation and do not trust those that have been linked with scams in the past. Information about dishonest exchanges is often found on social media and industry forums.

As a related tip, check out the terms and conditions before you sign up. This can help you figure out if there are some signs that something is wrong.

Security

At the end of the day, you want to be sure that your funds are secure, regardless of where you store your coins. Every exchange has specific security methods. You want to join one that at least offers 2FA (two-factor authentication). When this is not the case, see it as something that is not acceptable according to modern security standards.

Besides the 2FA, you should see what type is used. The 3 common ones are Authy, Yubikey, and Google authenticator. Then, take a look at the extra security measures that are in place to guarantee your funds, like custodial storage services or cold storage reserves.

As a related tip, see if the exchange has an insurance fund in place. This means the exchange is interested in your security.

Conclusions

To sum up, the facts that are the most important when you chose a coin exchange are security, reputation, and KYC/AML. However, besides these, you may also want to look at facts that are very important for you, like the coins that are available or the different policies that are in place when you buy or sell cryptocurrency. Basically, you need to take your time and choose just a reputable option that has proven itself as a true asset for account owners.

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