What is a crypto exchange? In short, this is an electronic platform where they trade in cryptocurrency – electronic money.
As in common currency exchanges, the participant’s responsibility is to produce a gain, that is, get at a lower value and trade at a more expensive cost.
Exchanges can only deal with transactions with different types of cryptocurrencies (Bitcoin, Tether, Ethereum, Ripple, and Polkadot coin).
Or exchange electronic money for world currencies (dollars, euros, and so on). And also combine both directions.
How to choose an electronic platform?
Making avax to ltc exchange does not depend on the site but your actions. But the safety of money depends on the exchange, which is important in such a super-risky type of activity.
First of all, pay attention to the size of the electronic platform. The larger the exchange, the more reliable it is. This is especially important for novice traders – small exchanges are not suitable for them.
Focus on jurisdiction. Adjusted cryptocurrency exchanges are recorded in specific nations and work under their rules.
Developed states with stable legislation and good work of the courts in this regard are preferable to developing ones.
Do not be lazy to read reviews about the exchange: some of them may turn out to be paid advertising, but you can catch the general trend.
Feedback can be seen on Bitcointalk, Reddit, or miningclub.info.
What is required to register on the exchange?
The registration procedure may differ from site to site and change over time. The main thing is that you must provide personal data and confirm it.
Somewhere you will be asked to send an e-mail address, phone number, and scanned passport. To work on another exchange, you also need to take a photo with a passport in your hands.
On the stock exchanges of some countries (where this is required by local law), you need to confirm the source of funds and their purity: the contract for the sale of the property.
What to pay special attention to?
When studying the sites of exchanges, pay attention to:
- at the price of the cryptocurrency you need on a specific site;
- on the size of commissions and their number. If the exchange charges a considerable fee for each operation, it will be very difficult for a novice trader to be in the black. Calculate in advance whether the operation will be profitable after deducting the commission;
- withdrawal limits. If you are allowed to withdraw only $ 100 per day, this is inconvenient. In the initial stages, when the profit is still small, this may seem insignificant. But once you start earning more, the restrictions will get in the way;
- the least start for replenishment – decide whether the price is available for you.
How to protect cryptocurrency from theft?
One of the potential dangers when working on the exchange is that hackers can hack an electronic wallet and steal cryptocurrency.
A “cold” wallet – that is, autonomous secure storage – will help protect you. This can be a private key for accessing a wallet or, in general, a flash drive (another device) that is connected to a computer if necessary.
True, the connection and disconnection scheme can be inconvenient during trading, when the reaction speed is very important.
Therefore, it is still important to choose a large reputable exchange with a better-developed security system.
Is it possible to somehow understand that the transactions are not fake?
Sometimes the information about transactions published by crypto exchanges raises doubts. But there are no 100% reliable ways to determine the reality of transactions.
The size of the platform can be a guarantee and a guarantee of honesty – large exchanges do not need fakes, there are enough real transactions.
Should a newbie go to the stock exchange at all?
It is difficult to respond unequivocally: everyone chooses for himself. But while the market is moving and deals are going on, you can make money on trading.
If we talk about long-term investment, then the cryptocurrency can be allocated 3-5% in the total portfolio.
Such a share will allow you to receive income if the operations on the exchange are successful, and will not allow you to go broke, even if you lose all the cryptocurrency.