Crypto Mania surely exists even today as it has not gone anywhere. Everyone, from enterprising millennials to significant investors, is scrambling to learn more about the capabilities of this incredible application of blockchain technology. Moreover, they want to know how they can invest in the crypto market to have innumerable gains.
There are thousands of people all over the world who are interested in investing in cryptocurrencies due to which the demand for crypto brokers have gone up. You will encounter numerous crypto brokers providing their services in the industry, but you will also come across stories of bizarre crypto brokerage scams. Not every crypto broker or an exchange can be trusted as many of them have turned out to be scams.
Even if the brokers are free of scams they might not have appropriate security measures or are lacking in some areas, which can lead to plenty of problems for crypto traders. Therefore, it is advised that you should choose a crypto broker wisely. How can you do that? Look for the following features while searching for a cryptocurrency broker to get started:
Authenticity and Security
It is crucial to do research and guarantee that you are choosing a legitimate and secure crypto platform. Prospective cryptocurrency investors look into the exchange’s security protocol in order to check whether their accounts are safe from scams or not.
Security is the most important factor that need to be kept in mind when getting involved in the cryptocurrency space because of several reasons.
Firstly, digital coins operate on decentralized networks and the cryptocurrency transactions are irreversible. Once a payment is sent, there is no way to undo it.
Secondly, when using an exchange, control of assets is given to a third party i.e. exchanges, so it is important to be sure protections are in place.
Thirdly, different exchanges may have a different approach when speaking about the security of the exchange. It is advised to look for security features-like two-factor authentication, whitelisting and cold storage-that can help keep funds secure at the account level.
Another major thing to consider in the nascent crypto markets is the reputation of the exchange, whether or not they have been hacked earlier, and who they use as their custodian.
Method of Purchase
The method of purchasing cryptocurrency varies from broker to broker. Some exchanges require deposits by bank transfer or net banking, some use PayPal/ UPID, while others accept credit and debit cards, and some solely use cryptocurrency for purchases.
If you do not own any cryptocurrency before joining an exchange, it is important that you choose a platform that accepts fiat currency so that you may enter the market without the pressure of owning crypto beforehand. It is also crucial to note how long these purchases take to complete. Some brokers process transactions nearly instantly while others can take days or weeks.
Supported Tokens
Most exchanges only support prominent tokens like Bitcoin and Ethereum, but investors in the cryptocurrency market know that is just the tip of the iceberg. There is a significant variation in supported cryptocurrencies across different crypto exchanges; some platforms allow trading a long list of altcoins, whereas others support only four major cryptocurrencies.
One can also purchase “stable coins,” which is often used by traders to hedge against the volatility common in the cryptocurrency markets. For example, TrueUSD is a USD-backed coin which is directly collateralized across a network of the bank.
Regardless of your risk appetite, make sure you select the right cryptocurrency exchange in India that supports all of the cryptocurrency tokens that you want to buy.
Regulatory Compliance
One cannot afford to select a broker that does not comply with the current client regulations like Know Your Customer (KYC) and anti-money laundering checks during the sign-up process. If the exchange does not abide by these, you should not choose them.
A trader should also check that a broker is transparent about the owners and the team behind it. Sometimes, exchanges that are regulated in politically stable jurisdictions have people behind the broker who can be held accountable while something goes wrong.
Fee Structure
Transaction fees and fee structures are different amongst various exchanges, which is a critical aspect while choosing a cryptocurrency broker. Some brokers offer discounted fees and this usually occurs when the exchange’s own token is used to complete transactions. While Others only charge purchase fee and not maker and taker charges like PCEX Member.
It is important to check the commissions and other fees that are charged by different crypto brokers. Make sure the broker clarifies what kind of fees they charge and any other risks that are involved so you can make your decision accordingly.
Customer Service of Crypto Brokers
Crypto trading can be done anytime regardless of time and place, which means you can have a problem or a question at any time during the entire day. Therefore, it is advised to look for a broker that’s available round the clock. They should have a competent support team that can answer your questions and queries in a prompt and professional manner, regardless of what time zone you are in.
Great Trading Platform
Similar to forex trading, crypto trading demands that a broker’s trading platform should be user friendly and boasts advanced features. The trading platform should enable crypto traders to hold and manage their accounts easily, perform technical analysis, execute trades in the market, and have access to the latest crypto market updates. Since the cryptocurrency market is a lot more volatile than any other market, the trading platform should be able to respond accordingly.
