For those looking to invest in crypto, there are now more options and avenues becoming available than ever before. But as crypto exchanges continue to evolve their business models to keep up with this frantic pace, how should potential investors navigate their way to a specific blockchain exchange that will provide an optimum fit for their needs?
Max Kordek, CEO and Co-Founder of Lisk:
“There are many things to consider before choosing an exchange to invest in. But the main piece of advice I would offer traders is to broaden your knowledge on the space before diving in. Make well-informed decisions, not hasty, speculative moves. While the hype around certain cryptocurrencies may be hard to ignore, it is sensible to adopt a more measured approach. For new or inexperienced traders, I would encourage them to take the time to develop a robust understanding of an exchange’s operations and thoroughly examine the processes they use to vet and verify their users. This information will be invaluable to prospective traders keen to make smart trading decisions.”
Frank Wagner, Co-founder and CEO of INVAO:
“I believe that when looking where to invest, it’s important to consider the exchanges’ verification requirement process. Although most exchanges do require some sort of ID verification in order to complete a transaction, some allow users to remain anonymous. Although verification can be a timely process, taking 2-5 days to complete, this step is essential in protecting the exchange from scams or money laundering schemes. At the end of the day, security should be a user’s top priority – and it’s well worth the time it takes to ensure your information is safe.”
Casey Kuhlman, Co-founder and CEO of Monax:
“The biggest piece of advice I can offer potential investors is to do your research – only invest in exchanges that are both trustworthy and credible. There are a lot of reliable sources out there that offer comprehensive reviews and compare the security features of different exchanges. I’d also advise users to backup their data to offline storage sites on a regular basis. As with all transactions done online, I would recommend using a VPN – virtual private network – to trade, as this will ensure that these transactions are completed as securely as possible.”
Craig Mc Gregor, Co-founder and CEO of DSTOQ:
“As cryptocurrency exchanges gain in popularity, it is increasingly important that users understand how to invest securely. I would recommend that first time investors in particular look into the difference between centralized versus decentralized exchanges. While centralized exchanges may be more common, ultimately these exchanges are in control of a trader’s funds as well as their private information. Decentralized exchanges offer users more transparency and control over their transactions. By removing the need for a third party to hold the user’s funds, decentralized exchanges are more resilient against security breaches.”
Nicolas Gilot, Co-CEO of blockchain-powered gaming distribution platform Ultra:
“There are a number of factors investors should take into consideration in advance of partnering with an exchange namely; research, reputation, and security.
Regardless of whether you are a new or experienced trader, it’s important to do your research and understand the different blockchain exchanges and which one provides an optimum fit for your needs. Reputation plays an important part when it comes to partnering with an exchange but it can be easy to get caught up in the blockchain buzz. Separating hype from reality and making informed and well-thought-out decisions is key here.
For seasoned traders, or those dipping their toes into the world of investment for the first time, security should always be a top priority. Take your time when creating your account; make sure you provide all the correct information, and put an email you have access to and that can be easily recovered. When your account creation is done, activate the two-factor authenticator as your account security is much weaker without it. Also remember to bookmark the website — don’t search for it on Google.
If you plan to buy a substantial amount of crypto, you should get a hardwallet such as Trezor or Ledger. It’s a must-have. Don’t store your coins on an exchange regardless of their reputation.”
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