Crypto is slowly, but surely making its way into the everyday lives of El Salvador citizens, e.g. with our country becoming the first nation to adopt Bitcoin as legal tender – and this is most likely just the beginning. However, these new opportunities don’t come without a certain amount of risks, due to the volatile nature of cryptocurrencies. So, if you’re looking to get into crypto, you’ll want to take certain precautions, starting with finding a trustworthy exchange to trade on. Read on for our best pointers to doing just that down below.
What to Look for When Using a Crypto Exchange
Crypto exchanges are marketplaces that allow you to trade currencies for other assets. They’re great places to gain an overview of the different currencies available and then start trading them. But since there are so many different exchanges out there to choose from, what do you look for to find the right one?
The three most important factors to look for are whether the crypto exchange is legal, how many markets the exchange has and how much value has been bought and sold over the last 24 hours. This is known as the 24-hour volume.
Take, for instance, Huobi – a market that has gained massive popularity in recent years. If you’re interested, you can check out the full Huobi review here, since it’s an excellent candidate for a trustworthy exchange to begin your crypto trading adventures. But to give you a quick summary, this crypto exchange has been on the market since 2013 and has especially experienced an increase in popularity in Asia. The attention has made Huobi become one of the largest crypto exchanges in the world, with over 1000 active markets and more than $4 billion in 24-hour trading volume – all good, solid numbers, which should give you a sense of how trustworthy the exchange is to trade on.
Exchange Security Must be on Point
Because cryptocurrencies have become so popular, some exchanges have also grown rather large. With a lot of people using these markets, good security must of course also be on your list of priorities when you’re looking for the right one. Trading cryptocurrencies can require bigger sums of money, so it’s important that you feel safe and secure when doing it.
Going back to our Huobi example, you must have either a passport, driver’s license or a government issued ID card when signing up on this exchange. You must also have one of the following items to be able to verify your address: a bank statement, utility bill, credit card bill or phone/internet statement. Lastly, depending on the region, you’ll also need one of these items: pay slip, property sale statement, company sale statement, company profit or dividends statement, pension recipient or proof of winnings.
As you can tell, it’s a fairly long process. However, this is all to provide as much safety as possible for each user – something many of the formerly popular, but now collapsed crypto exchanges such as FTX could have benefited greatly from prioritizing more to e.g. avoid disastrous hacks.
In a world with advanced technology, it’s likely only a matter of time before crypto becomes international currency to be used on an everyday basis. Finding the right places to trade will allow you to build your fortune and make the most of it once it’s more widely recognized – so, with the above tips in mind, get out there and start exploring the world of crypto exchanges to find the trading platform for you.
