Choosing a cryptocurrency exchange for your Tokens

August 30, 2018

TheRightICO

After ICO:
Investor’s ultimate guide for choosing an exchange for their new Tokens

Once investors have taken part in an ICO, they would initially want to know what to do with the tokens they just purchased and where to exchange them. Perhaps the easiest alternative is to wait for the project implementation and utilize the tokens bought on the platform’s services. However, a few projects offer several approaches for users to trade out. A case in point is the Playkey tokens. Besides being used in low-powered computers to access superior-quality games, the tokens can also be used to acquire mining hardware. In the long haul, they can as well be used to support pro-gaming teams, view broadcasts, for promotion, and so forth. Holding tokens and selling them when their price has soared is the most prevalent strategy used by crypto investors; however, this can’t usually guarantee huge profits. At some point, you will obviously need to transfer your digital currency to a cryptocurrency exchange. This is what you need to think about when picking one;

Size of a cryptocurrency exchange

The volume of a cryptocurrency exchange on a trading platform determines its size. For instance, the list below contains some of the biggest exchanges in October 2017. They could rank contrastingly on other platforms as some may list exchanges only while others incorporate solutions offering an essential trading system.
Bitfinex ($395,249,841)
in a 24-hour exchange
Bithumb ($319,516,760)
Bittrex ($274,532,950)
HitBTC ($166,998,519)
bitFlyer ($132,556,799)
Poloniex ($127,855,483)
GDAX ($113,641,827)
Kraken ($104,201,393)
Bitstamp ($84,581,387)
Binance ($82,573,733)
Arguably, the size of a digital currency exchange has a huge impact on its positive reputation as it indicate an exchange’s security and trading ease. Despite the fact that, obviously, some risks are difficult to predict: Mt. Gox, a pioneer and major exchange in 2013 that controlled an estimated 70% of the bitcoin market collapsed after a hack slipped over $450 million from its account.

List of digital currencies provided

The most common cryptocurrencies are the Bitcoins and Ethereum, and trading them is rather simple. However, managing new digital currencies from ICO issue of attractive projects is relatively painstaking.  Such tokens can simply be bought from project’s website; however, it may not be possible to trade them at a profit. Therefore, the tokens you intend to buy should be included in a cryptocurrency exchange – which increases their prices by a whopping 25%! Although blockchain startups may not make it to top exchanges, investors need to continuously scan the available exchanges where the specific tokens could be listed. Playkey tokens, for instance, are obviously available on Coinexchange, Evercoin, Cryptopia and coinlink Korea. Talks are also underway for the tokens to be included in a major exchange-Bittrex. Evidently, it isn’t simple to tell projects that will receive substantial attention and investment from investors. Besides, focusing on a single digital currency could spell doom.  Therefore, it is indispensable to pick a trading platform with a wide variety of trading pairs that the exchange of bitcoins for dollars, Bitcoin Cash for ethers, ethers for bitcoins etc. If you’ve settled on trading Playtokens but want to diversify to other currencies, it is imperative to use the dependable Bittrex that features 264 trading pairs or even Cryptopia with1000+ trading pairs.

Fees

Apparently, every cryptocurrency exchange charges fees for their services. Although commissions charged are often less than one percent of the amounts transacted, they may differ extensively according to an exchange’s volume of trade and its policies.

Bithumb

This company is an example of cryptocurrency exchange whose fees are remarkably low. Bithumb charges a commission of 0.15%! Although most exchanges reward active members by offering discounts, Bithumb’s charges do not depend on user’s trade volumes. The exchange features only 10 trading pairs. While the currency pairs may be quite limited, investors rake in huge profits owing to the low commission. You may be thinking about the charges of adding funds to your account or even withdrawing them. Conditions offered by exchanges for such actions may be distinctive, and often depend on transaction type (dollars or cryptocurrency). For instance, Bitfinex charges a fee of 0.1% for dollar transactions; $20 is the lowest payable charge. It is prudent to evaluate how regularly you’ll have to utilize fiat cash. Size of deposits and cashouts The amount of funds that can be added or cashed-out from an account varies from one exchange to another. It could rely upon the verification level of an account user. For instance, if a user has only verified their email, the amount allowed is considerably lower. However, if more verification information such as passport details and phone numbers have been provided, amounts that can be transacted rises significantly. Big exchanges usually have corporate user accounts; corporate users can swap money from these accounts to company accounts. The method of swapping cash in and out is also worth noting. Bittrex, for instance, is the only crtpsocurrencuy exchange that accepts cryptocurrency wallets. On the other hand, Bithumb allows users to add funds using credit cards and withdrawals can be made directly to a bank account.

The location of an exchange

While exchanges can be accessed from virtually every corner of the globe, their locations can still influence the scope of its use. Some exchanges mark selected countries as “restricted,” rendering certain trading tools unavailable to them. In some cases, services are completely denied. A case in point is Hong Kong-based Bitfinex that limited services to US citizens as from November last year. It is also essential to think about the likelihood of further restrictions in the future. China, for instance, will soon regulate cryptocurrencies- a move that many investors who have invested in Chinese exchanges might not welcome.

Bonus tips

The information above is elaborate; nonetheless, convenience is the key factor to be focused on. To enhance your experience, choose exchanges with user-friendly interfaces and those with mobile application particularly if you like running trades from your phone. Top exchanges like Poloniex can’t boast about cross-platform access. Furthermore, remember to mitigate risks by diversifying. Regardless of whether an exchange appears to pass every checklist listed above, do not trust it entirely. Good luck!

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