Digital cryptocurrencies are not reliant on central authorities as they are decentralized and automated. Furthermore, they are not in paper form which makes them secure. These are the leading tradable assets of 2021, that served as the ‘massive growth’ year for this industry. All this was largely triggered by the pandemic as the whole wide world was confined to their homes with nothing very productive to do. Adding to this are the Crypto Online Exchange Platforms are more than 200 in number as indicated by CoinMarketCap. This does not stop here, these platforms are providing consumers with various payment options like Buying Crypto with Fiat and Credit Card. This, however, has minimized the time taken for transactions and is easier than the rest of the other methods.
Cryptocurrency Global Exchange Platforms: Five Things to Grasp
As stated above there are hundreds of exchange platforms that provide users with unique and notable features. However, users can take hold of some points to align their crypto strategy with.
The Fees Charged
Crypto exchanges vary in fees, but it is for sure that they levy it. Some charge as minimal as 3% while some as maximum as 5-6%. Also, the fees vary on the type of transactions, whether they are purchased with credit card or fiat or the number of tokens purchased. However, the native tokens enable the users to pay fewer fees. Also, some platforms are providing security and insurance in return for what they charge.
Region of Business of Exchange
Exchanges are spreading their wings to cover every region so that consumers can easily invest in cryptocurrencies. However, due to the complete ban, the exchange can not operate in some regions. Here, some platforms have sites addresses that are specific to every country. But some have jurisdiction over specific locales. But there is a remedy to this, provided by Estonia, that is serving as the hotspot for crypto trading.
Level of Security
There might be some risks to be considered before blindly carrying out a purchase. No platform is 100% secure despite whatever they assure. A solution to select the right exchange is to look for how long it has been around and doing business. Most of the exchanges are secure and customers hold good remarks about them. Further guidance can be found on the sites and in apps.
Liquidity Volume
There are both types of exchanges, one with high liquidity volume and the others with low levels. Both are of equal importance. This is so because the newcomers into the cryptoverse might need to start from a low investment until they master the skills. There are exchanges of many users that are trading cryptocurrencies on a day-to-day basis. This indicates that the platform has a high liquidity level. Liquidity is typically salient when the volatility is high as it will enable the consumers to save their funds by quick investments in other profitable coins. And that too in time.
Crypto Buy with Credit Card – Reliable or Dodgy?
Using a credit card as a payment method, as compared to Buying Crypto with Fiat, may seem reliable and easy-to-use and undoubtedly it is. Backing this point is the survey conducted by LendEDU, where they found out that 18.15% of the respondents from a total of 672, use their credit cards to pay for digital crypto tokens. Despite all this, cardholders may face fees charged by both the exchange and issuers. Also, there can be a restriction on crypto buying if the issuer does not allow this type of buying. However, there is a remedy to every problem.
When the Purchase is Allowed
The first step before opting for the credit card purchase is to find out whether the issuer allows the purchase or not. Quoting an example here is American Express which allows crypto buying but with certain strict terms. Furthermore, the cross-check on the platform is also mandatory. What if the exchange does not allow this type of purchase? The users then will be stuck in between. Moving on, some cryptocurrency exchange platforms allow direct deposits from a bank account. These funds are later used to exchange for tokens or make direct purchases.
Another point to look for is what limitations are imposed. These include the number of tokens users can purchase one time with their credit card. Also, the type of card exchange accepts. All these prerequisites add up to a secure and seamless credit card purchase.
When the Purchase is Not Allowed
Not all of the credit card companies in the UK and US allow Buying Crypto with Fiat. For instance, Citibank blocked the card of holders, restricting them from buying cryptocurrencies in 2018. This was due to the volatility of the market and increased chances of fraud and risks. Furthermore, the issuers might take these purchases as cash advances and charge high fees. Also, there are exchanges that do not allow the use of credit cards. Another facet to be considered here is the region-based restrictions. Some states may be allowing this purchase however some may have imposed a complete ban on the cryptocurrency as a whole. For instance, China, Russia, India, and others.
