Are you an aspiring cryptocurrency trader and you do not know where to turn to start making some cool money from this emerging market? The earlier you registered at a cryptocurrency exchange the better for you. There are so many of such outlets out there today and they all claim to be reliable. However, it is unfortunate that only very few of them can be trusted to deliver on their promises. If you are looking for a reliable exchange, you need to first take your time to investigate the exchange and find out if that Crypto Exchange can be trusted or not.
In the remaining part of this write-up, we will enlighten you about how to choose a cryptocurrency exchange so that you do not end up with a scammer.
Do they comply with KYC?
You need to first find out if the cryptocurrency exchange carries out its services in compliance with the KYC policy. Does it also adopt other regulations and laws that are gold standard in the financial world? You are better off with a cryptocurrency exchange that has the Anti-Money Laundering and the Know Your Customer (KYC) practices. These practices require that the customer submit certain personal details during the process of registering an account to buy bitcoins.
Bear in mind, however, that the said practice varies from one exchange to another. There are times you are required to provide the said detail while registering or when making a withdrawal of your funds.
How secure is the website?
You must never fail to investigate how safe or otherwise the cryptocurrency exchange platform is before you ever trust such a platform. Find out if the crypto exchange offers two-factor authentication (2FA) before you ever register there. An exchange that does not offer this security system may not be reliable according to the security standard for the current age.
The three main and most reliable avenues for 2FA are highlighted below:
- Yubikey
- Authy
- Google authenticator
Find out if the cryptocurrency exchange is using any of these three or not. Additionally, find out if the outlet has custodial storage services and cold storage asset reserves. The duo will give more assurance of security on that platform. You may want to think twice about patronize that exchange if it fails any of the security tests described above. It means it may not be a wise decision to buy bitcoins on such a platform.
Check for insurance fund
It is also very important to check that platform for insurance fund before you register on the cryptocurrency exchange. It is not wise to register with an exchange that does not have an insurance fund; the funds can be used for compensating their customers in case something goes wrong with their funds under specific circumstances.
