Cryptocurrencies are the future of money, but choosing the right exchange is crucial

By George Prior, financial writer / London

Image source: Korea IT Times

The new problems of a major cryptocurrency exchange underscore the importance of choosing the right one to buy, sell and hold stocks such as Bitcoin and Ethereum.

Warnings from deVere Group CEO Nigel Green come as the U.S. Securities and Exchange Commission (SEC) investigates whether a U.S.-based cryptocurrency exchange illegally allows users to trade asset numbers that have not been registered as securities.

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This SEC investigation is separate from that company’s alleged insider trading scheme that led to the fraud allegations against three former employees last Thursday.

Nigel Green, who launched the pioneering deVere Crypto app in 2018, comments: “Most exchanges regularly add to their list of coin offerings, as each has a different set of features.

But the exchange shouldn’t be about adding new cryptocurrencies because, clearly, this comes with obvious and avoidable and potentially costly risks to users.

Due diligence by industry experts is essential and should be done consistently before new parts are added.

Green stressed: “You have to make sure it’s part of the exchange policy.”

Other issues to consider when choosing a cryptocurrency exchange include security.

“Most cryptocurrency exchanges offer basic protections such as two-factor authentication, others will need an official ID such as a passport or driver’s license to open a new account. Some even have access codes required when shopping. either you sell or if you make significant changes to your account, “says Green.

Also, potential users should compare the fees charged, which can vary widely and can be charged in different ways, such as by transaction or payment method.

Liquidity matters. You will want to know that you can exchange your traditional currencies for cryptocurrencies and vice versa without any problems. A good way to look at this is to trade volumes – the higher, the better.

Also, you should see which company owns the exchange. Is it well established? Is it a global company capable of handling complex problems in multiple jurisdictions? Do you have experience in both fintech and traditional financial services? Is there an appropriate customer service to address issues quickly and efficiently? Are there any news and educational resources on offer?

Nigel Green concludes, “The problems facing some of the biggest cryptocurrency exchanges currently underline why you should take the time to pick the right one. Don’t necessarily skip the ones with the flashiest TV commercials and celebrity ambassadors.

Security, liquidity, fees, history and user experience are essential checks to perform.

Cryptocurrencies are, inevitably, the future of money. But you have to do it right from the start. It may take some time, but your future self will thank you for it.

© Korea IT Times 무단 전재 및 재배포 금지

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