The choice of crypto exchange is crucial for traders because it is the factor that will decide your success. You can either fail at crypto trading or become successful with the help of crypto exchange. Therefore, you should be very careful with this selection.
This task was not that difficult however, with the popularity of cryptocurrencies, there are various applications in the market. And the various applications also include a lot of fake ones. There are scammers and fraudsters that will take away your precious money. So if you do not want to get a scammy exchange app, you should be very careful with your search.
Identification of the fake exchangers
There are a few tricks and tips that you can use to identify fake and real ones. One of the trusted trading platforms for bitcoin and other cryptocurrencies is cryptex. It provides you with secure cryptocurrency wallets. In addition to this, there is a 0 percent trade fee for all the liquidity providers. And there are no limits or restrictions to your transactions. Thus, you can transact any amount you want, and that too anonymously. The most interesting thing that this exchanger offers is the 5FA account protection. So the risk of attacks will be low. You can read more information about it on cryptex.net.
The question here is to identify the real and fake ones. So how will you do that? Well, there is a way to do so, you can use the following tricks to identify them properly.
1. Pay attention to every little detail
One of the ways to identify a real and fake exchanger is through trading volume and liquidity. So if you are careful with all the little details, you will also be aware of this.
When we talk about digital currency and assets, you should know that the change will happen very quickly. It might need a split second to have a completely different price. Therefore, timing is important for traders. So if you are habitual in paying attention to such details, you will also be aware of the trading volume.
So if you are using an exchanger, it should exchange your deposited amount promptly at a close amount to what you have set. Deviation from the set amount will let you pay a heavy markup. This is the reason for their liquidity. The liquidity of the exchanger depends on the number of daily users.
Therefore, if the number of users is not high on a daily basis, it is highly likely to be fake. That is why you should not deposit your money. Because if the trading volume is low, it means that the users are not selling their coins. Similarly, they won’t be buying anything new. This will result in forcing you to sell your coins at quite a low price. Thus, you will suffer from the loss. So make sure to be aware of the trading volume and liquidity.
2. Be careful with the deposit and withdrawals limits
If you are new to crypto trading, you should know that crypto exchanges have set a minimum and maximum withdrawal limit. This limit is reasonable for real ones. So if you feel like the limit is too low for withdrawals and too high for deposits, you should do some more research work.
Whether you are working as a crypto trader or an investor, you cannot always keep your money in digital form. You will need to cash some of your amounts at any time. Therefore, even if not all, you should be able to get some of your amounts from the crypto. However, if the maximum withdrawal limit is too low, you won’t be able to get any significant benefits from it.
Real crypto exchanges allow you to deposit quite a low amount. For example, there are some exchanges that require a minimum deposit of $2. And when it comes to fakers, they would ask you to pay the minimum deposit of $200.
But do not mistake the withdrawal limits. Withdrawals are usually very strict everywhere. But the strictness is in the rules. Furthermore, the maximum withdrawal limit should also be good enough. It should be good enough for you to get it on time during emergencies.
3. Keep a tab
Every time a user trades or makes a transaction, he has to pay a fee. This fee is for the exchange and not for anything else. But every crypto exchange will charge you this fee. So while everyone is charging the fee, what’s the problem? The problem is with the percentage of this fee.
There is no fixed amount because the fee depends on the type of transaction. For some transactions, you won’t have to pay any price. However, for some others, you will be paying around 4 percent of your amount. So you should learn about these fees and also keep a tab regarding this. If someone is charging an exceptionally high fee, it means that they are charging you too much.
4. Do a background check
The best way to identify real and fake ones is through doing a background check. It is easy to do it for people but how will you do so for crypto exchanges? That also won’t be a problem. You can go through the online comments and check out their reviews. If you are good at background checks, you will be able to identify real and paid reviews.
So pay close attention to this also.
But if you find yourself unable to do so, you can get help from Google. It is easy to get any information that you are looking for from Google. What you can do is check whether the platform is doxxed or not and if they have social media pages or not. Plus, the number of followers and viewers is real or fake. Paying attention to these will help you in the longer run.