Crypto or Bitcoin exchanges are a common sight today across the virtual world. However, not all of them around would be worth your money, time and trust. It won’t be wrong to claim that there are a few rotten apples in the basket. So, be extremely careful so that you can safely avoid the common mistakes made by amateur traders while finding a Bitcoin exchange. Here is a brief on the mistakes usually observed among beginner traders.
- Not getting a comparative study
If you are rushing to sign up with only the first ever exchange you come across online there is no guarantee you are registering with a safe portal. Thus, one must get a comparative study on at least 5-6 major exchanges before the final sign up. You have to study expert reviews on them and then settle with the most reputed of the lot. Good reputation is the live testimony to quality and credible offerings from a platform.
- Not checking the exchange software
The functionality, credibility and efficiency of a Bitcoin exchange are widely dependent on its software. So, if you don’t check the validity of diese Software before signing up, you cannot promise yourself a great trading experience always.
Your chosen exchange should be backed by a white-label SegWit enabled, high frequency trading software. The software should also assure multicurrency and multi-signature facilities.
- Not checking the safety features beforehand
This is the worst mistake observed among beginner Bitcoin traders looking for an exchange in rush. Hacking attacks on exchanges are increasing at a staggering rate. It’s extremely important to sign up with a well-fortified crypto exchange which can guarantee optimum security for your digital assets. Below are the points that you should check while gauging the safety level of a Bitcoin exchange.
Does the exchange URL start with “https”?
Does the exchange adhere to KYC and AML procedures?
Does the exchange use cold wallet storage
Is the exchange insured?
Does the exchange follow 2-FA?
If all these factors are present, you can be assured of the exchange’s safety.