Things to Check Before You Choose a Cryptocurrency Futures Exchange
The global crypto market was close to $700 billion in 2018, and it seems to continue to grow at the same momentum. This has piqued your interest in crypto futures trading, but you are not sure how to pick the best cryptocurrency futures exchange for you.
As there are so many exchanges popping up every now, and if it is overwhelming to pick one for you, we’ve got you covered. You only need to check these things before choosing an exchange, and you are good to go.
This is new, but the most important one. Since the crypto futures market is still reasonably under-regulated, it becomes difficult to find a reliable exchange for you to trade on. With these limitations, social media can play a vital role. Twitter and Reddit are forums that can be a source of useful information about the exchange’s standing.
Lucky for you, some people have already tried the exchange and have valuable feedback that you can use, rather than you being the first one to use the exchange. So, join groups related to crypto trading on these social media platforms and start researching the exchanges.
You must be wondering what character has to do with a cryptocurrency futures exchange. Here, it means to assure if the exchange has had any regulatory action against it. Since these exchanges are in their nascent stage, there may be some regulatory issues. A web search will provide such information. Check to see how severe the problem was and how the exchange reacted. It will help you decide the character of the exchange.
A large chunk of your capital can be eaten away in unnecessary fees, and you will be left with little even after you make a neat profit. Therefore, you must compare the fees that various exchanges charge. Read the fine print and check for any hidden fees. The usual prices that apply to crypto trading are the brokerage fees and taxes. If you see charges other than these, don’t hesitate to ask questions.
The Technology behind the Exchange
The technology that the exchange uses for crypto trading is a critical aspect. Since price movements are split-second, the technology should support order execution at the same speed. The software should have lightning speed and also reduced transaction costs by up to 20%. This can help increase your profitability in the long run.
Since all exchanges run on online platforms, you need to verify the safety checks they have in place. This information is readily available on the exchange’s website. You can also call them to get more details.
Ensure that the safeguards include anti-hacking technology, anticipation, and prevention of fraud and measures to keep investor information secure. One way of preventing these is to have a two-step authentication before login, including a password and a one-time access code, sent to your phone each time you log in. Another one is the display when you last your account to make sure no one else has access to it.
Robust customer support can make for a great crypto exchange. Customer support is not just about query resolution. The exchange should also have a mechanism to report any suspicious activity that you see on your account. The customer support department should be able to answer queries about fees, prices, contracts, account-specific information, and assist you with any other concerns.
Of course, before sharing any details, they need to verify that they are speaking with the investor and not someone else.
Picking a cryptocurrency futures exchange is not a decision to be taken lightly. It needs thorough research into the above aspects. By finding the right exchange, you save a lot of time, money, and heartache. Also, you make crypto trading an enjoyable experience.