Three top criteria for selecting a cryptocurrency exchange

Even though everyone is talking about cryptocurrencies and block chains, people yet have to experience them, and we know the reason why this is happening. Investing your money in digital currencies can be scary, mainly because of the price. At one point, it can reach the peak, but at the next, you can lose everything. For traders who want to invest in coins, this entire process should be more accessible and many people are confused because this is a new form of investment. So, if you are decided to purchase your first coins, then we will tell you how to choose the best cryptocurrency exchange.

Where is located?

Locations is an essential part of this process because recently we have many exchanges emerging from the Asian market and many investors are warning traders about them. So, the best coin exchange comes down to where you are located. Considering that cryptocurrency trading is still new, there are only a couple of exchanges in most countries. You need to pay attention to regulation, and if you decide to register with some foreign exchange, then you might not be able to do much if some problem occurs. On the other hand, if your country doesn’t have a coin exchange, go for starts that have excellent regulation and financial laws. In addition to this, many exchanges will let you know during the sign-up process if for some reason you can use their services.

What method of payment will you use?

When it comes to selling and buying digital currencies, you need to be patient. This is a lengthy procedure and every time you have something new to learn. Take some time to review their policies and decide what method of payment you will use. This can save you a lot of money, the money you won’t have to waste on fees. Keep in mind that the easier it is to pay, the more significant costs you will encounter. The charge is calculated by the amount you use to pay for coins and usually that fee goes to miners. Conversion fees go between 0.5% up to 5%. In this case, the exchange makes money on your transaction. For example, if you buy coins using the CEX.IO, the conversion fee will be 3.5% if pay with a debit card, but if you pay using a bank account, then your fee is free.

What currency would you like to purchase and sell?

For most investors who are new to cryptocurrency, the obvious choice would be bitcoin because it’s the most popular. Today, this digital currency represents a 47% of entire cryptocurrency market cap. But, before you invest your money in bitcoin, you should also research other currencies as well. Nowadays, there are a thousand of them; you just need to find your match. You can always narrow down your choice by comparing them, their trading history, value, volume and the price. Only, in this case, you will have to wait longer to achieve success, same as bitcoin traders did.

How to choose cryptocurrency to invest?

This can be a tricky question, especially if you are a beginner and just starting to trade digital currencies. We all know about bitcoin, but considering its price reached $10,000, we think this is too much for average users. In this case, you need to find something that will be profitable in the next couple of years. But, how will you do that, if you aren’t a financial expert and you don’t have a sense for trading? Now you have a variety of choice and dozens of digital currencies available on the market. We are going to show you how to make the best decision.

24h volume

This time gap indicates how much value has been traded through a 24h period and it is expressed in USC and BTC. The higher the volume, the more established the base is. In this case, you should choose a coin that has at least $10,000 trading volume. This is a proof that digital currency is already traded and that there is a certain percentage of people who believe in this cryptocurrency. You can find online some successful stories of investors buying coins for a couple of cents, with a low volume and reached success, but these cases are rare.

You need to pay attention to pump and dump schemes. They are usually set by developers who but a large number of coins and later they sell it. This also means that price will decrease as well. But, if you look at the trading history, you can easily spot this pattern.

Coin liquidity

The coin liquidity is measured in volume and BTC. Some coins have a minimal BTC volume, which means, if you buy a couple of hundred of them, it can move a market in your disadvantage. To avoid this situation, you shouldn’t use exchanges that a low volume of exchanges.

On the other hand, the exchange can artificially increase the trading volume to attract more investors, who always look for higher liquidity. So, if you aren’t familiar with the exchange history, or you have chosen not such a prominent exchange, then you should pay attention to increase of volume and see if it matches the increase in price. But, why are exchanges doing this? It’s simple; they don’t want to lose clients and corresponding fees. Unfortunately, this problem also affects even larger exchanges, so you should pay attention.

Market capitalization and current price

If you want to determine the market capitalization, you just have to multiply the number of coins and current market price. However, this only works with the coins that have already been mined. Developers tend to make a lot of coins at the beginning, which can reflect the higher price, than the one in reality.

The current price of the coin is a perceived value, and you should never make a decision based on that amount. So, if you see a digital currency with a low daily volume, but has a high market capitalization, then it’s some form of manipulation, and you should stay away from it.

How to buy your first cryptocurrency coins?

We have an impression that 2018 will be the years if digital currencies. The new millions are being made as we speak and investors are interested in all forms of cryptocurrency, such as Ethereum, Bitcoin, NEO, Litecoin, Ripple, and others. This has become a modern-day gold rush, and many people have gone crazy over digital currencies. Now bitcoin is now worth thousands of dollars, which is an impressive amount. For coins that once worth a couple of pennies, now investors have made serious money.

Bitcoin might the oldest cryptocurrency, but it’s not the only one on the market. In fact, many people who are just starting with the trade are focusing their attention on Ethereum. This digital currency has had the most significant gain the previous year, and recently this has become the first choice for investors, considering the price of bitcoin. Ethereum is also one of the first cryptocurrencies that many major companies such as Samsung, Microsoft, and JPMorgan Chace supported. Considering that its price was only 12 dollars last year, now the price of Ethereum is a couple of hundreds of dollars. In this case, Ethereum is slowly but surely making the significant gain.

But, Ethereum is not the only digital currency you can trade, but, it’s definitely the most promising one. There are others that might spike your attention. But, you need to choose the cryptocurrency that has a future on digital market and in some cases, you will have to wait a couple of years until your investment becomes valuable.

How to purchase your first coins?

This procedure is confusing for the majority of people, especially if you are an average trader. The digital currencies aren’t stocks or a typical investment. Considering that this is a new form of investment, a lot of people still don’t have experience. In this case, you don’t get shares, but digital coins. A lot of experts think that coins are a better solution than paper money because they are supporting a more significant cause.

For traders who are living in the U.S. Coinbase is the most comfortable option to buy digital coins. Here you can buy Ethereum, Litecoin, and Bitcoin, but the platform doesn’t support other currencies, yet. Once you verify your account and choose the method of payment, which includes credit or debit card, U.S. bank account or wire transfer. In most cases, you need to verify your account with a driver’s license and this exchange doesn’t ask for your ID and once you make a transaction, you can’t reverse it.

On the other hand, if you are looking some other digital currencies, that cost less money, you can try with NEO, but it hasn’t made any significant progress. If you own Bitcoins or Ethereum, you can exchange them with any other digital currencies that interest you. If you are outside the U.S., you can try with other exchanges, but our advice would be to avoid Asian exchanges because no one will guarantee you security.

Four things to know before investing in cryptocurrency

A cryptocurrency is a form of investment that has taken the world by surprise, and now many investors are thinking about putting their money in coins. The most significant example we have so far is Bitcoin, which has reached the remarkable price in the last year. But, are you willing to risk and put your money in something that is unstable and one day it can go up, but the next day it can ruin you. So, if you are serious about cryptocurrencies, here are some things you should know before you make the final decision.

Why are digital currencies attracting attention?

Considering that we live in the era of digital revolution, it shouldn’t surprise us why digital currencies have become so popular and claimed the interest of investors. First of all, this form of investment is open to everyone and second, this is an entirely a new asset that has appeared on the market. Even though this entire situation might seem scary and it takes a lot of time and effort to learn the basics, the results can be remarkable and more significant than any other investment.

Why invest in digital currencies?

If we take the example of bitcoin, it seems silly that only one coin can be worth thousands of dollars. But, what makes it valuable? Bitcoins are scarce and useful, and there is a limited amount of them. If we compare it with gold, we know that it’s a valuable resource, but it’s very hard to find it in nature, the same thing is with bitcoin. This is the only reason why bitcoin is expensive, and there are only 21 million of bitcoins on the market. Now the price of bitcoin is around $10,000, which is a considerable amount if you are thinking about investment. But, you can choose some other cryptocurrency and start building your portfolio because many experts predict that digital currencies will be the future of world’s economy.

The price of digital currencies

There is no official price for cryptocurrencies, and they are set by whatever people are willing to pay. The price is generally shown as the cost of one coin. On the other hand, when you register with one exchange, they will let you buy any amount you want. But, before you make an initial purchase, make sure to research the market to find the best deal.

When is the right time to buy?

No one can tell you that because as with any market, nothing is for sure. If we compare the previous prices and values, so far, cryptocurrencies have only increased in price and at a very fast pace. You can use tools like Bitcoin Wisdom and Cryptowatch to analyze the charts compare the prices through history. Considering that digital currencies aren’t bound to any government nor state; the value can be unstable and depends on people who invest in them. In this case, you should find a balance and avoid investing when the price the highest.