Investing in cryptos can be a very profitable undertaking, but at the same time, it can prove to be costly if you make a small mistake. Cryptocurrencies are not the same as other traditional investment options where you have some guarantee when you invest there. If you are not careful, you can lose all your crypto to cybercriminals, so you need to work with a reputable crypto exchange.
There are several crypto exchanges out there, some of them being run by fraudsters to prey on unsuspecting investors. Most of these exchanges offer completely different crypto to attract new investors. That’s why you need to learn about the various digital currencies available to avoid being scammed easily.
Here are the top mistakes to look out for when choosing a crypto exchange:
Choosing a New Crypto Exchange
Most people who have lost their money to fraudsters while investing in crypto opted for new crypto exchanges. Not all of these sites have been created for crypto trading, as some aim to defraud people. That is why you should choose a crypto exchange that has already been tested.
Some of these new exchanges will operate smoothly at first, but you will realize that they cannot go through when it comes to withdrawals. Also, ensure that the crypto exchange you choose deals with all the top digital currencies.
Not Confirming If the Exchange Is Allowed in Your Country
This is one vital factor you should check on before you sign up for a crypto exchange. If an exchange is incorporated under the company’s act of your country, you are guaranteed they have all the licenses required to run the business. You can also check whether there are any laws or regulations in your land against cryptocurrencies to avoid losing your money as soon as you deposit in a crypto exchange. Choosing a crypto exchange registered in your country allows you to follow a legal discourse if your coins have been withheld.
Choosing an Exchange That Is Not Secure and Safe
Hacks on some crypto exchanges have resulted in the loss of billions. It will be sad for you to think that you have made money trading in crypto only to be hacked and lose it all. That is why it is vital to check on any crypto exchange’s security protocols before signing up with it.
Choose platforms that use high-end user encryption to log in. This way, you are guaranteed that your money is safe and fraudsters cannot access your details. …