A cryptocurrency exchange is an online platform that allows users to perform different operations such as buying, selling, and exchanging cryptocurrencies, for instance, Bitcoin, Ethereum, or Tether.
Cryptocurrency exchanges are financial tools that can help medium-sized companies better manage their digital assets. However, since there is currently a wide variety of alternatives on the market, choosing the right provider or the one that best suits the needs of a medium-sized company can be demanding. Here are some points to consider when choosing a cryptocurrency exchange.
Types of cryptocurrencies
Medium-sized companies can use cryptocurrency Exchange to expand their market reach since cryptocurrencies can be accepted as a form of payment, thus diversifying the company’s customers and suppliers. For this reason, it is significant to verify what types of cryptocurrencies the Exchange operates with, as this will give us an idea about the level of seriousness and versatility of the company, besides making sure the provider operates with the cryptocurrencies of our interest.
For example, if the company only works with well-known cryptocurrencies (such as Bitcoin, Ethereum, or Tether), it will symbolize greater trust and stability. On the other hand, if the company operates with lesser-known or disreputable cryptocurrencies, then this could be a red flag.
Transaction costs and fees
Medium-sized companies need to take into account the costs and transaction fees that the Exchange may charge since each operator or entity that offers the cryptocurrency Exchange service has different operating costs. Among the most prominent costs are currency conversion fees, which occur when exchanging cryptocurrencies for FIAT currencies.
Evaluating reputation
Another point to consider when choosing a cryptocurrency Exchange is to evaluate the provider’s reputation; this can be done by reviewing the ratings and opinions about the Exchange or the company that manages the platform, as this way, you can get a better idea about the level of quality of the platform.
It is essential to check the authenticity of such ratings, in addition to taking into account more objective ratings. For example, in most cases, maximum or minimum value ratings will tend to incorporate more emotional and subjective opinions (everything is wrong, or everything is excellent), but intermediate ratings will tend to be more objective and closer to reality.
Security level
It is advisable to evaluate the security level of the Exchange platform; this can be done by assessing the security measures taken by the company (behind the platform), such as two-factor authentication (2FA), internal security audits, and their level of regulatory compliance, among others.
Another tip is to investigate whether the company complies with local regulations and is registered in your respective jurisdiction, as this means that the company has some level of oversight and will comply with leading industry safety standards.
Experience and user interface
Another point that can be taken into account when choosing a cryptocurrency Exchange is to evaluate the experience and user interface of its platform since having a friendly interface can be of great help when performing any operation or transaction of cryptocurrencies on the other hand, if the platform is not intuitive and easy to use, then we cannot take advantage of the full potential of the ecosystem.
Evaluate customer support
It is advisable to evaluate the quality level of customer support by the company behind the exchange, as this will give a better idea of the level of service and responsiveness of the company in case of an incident. To evaluate this point, we can look at the quality and response time that the company has in its different official digital channels.
Additional platform functions
It is advisable to verify if the cryptocurrency Exchange has additional functions or services in its platform since it may be practical and convenient for the company to have other complementary functions or services such as IBAN accounts, cryptocurrency wallet, and FIAT money, payment processors, among others.
Not to be confused with a wallet
While wallet and exchange services are complementary, it is essential to avoid conflating them. A wallet is used to store and control cryptocurrencies, which is, in essence, a kind of “digital wallet”; on the other hand, an exchange is used to perform financial transactions (buying and selling) with cryptocurrencies and exchanges, either between FIAT money and other cryptocurrencies or vice versa.
Wallet and Exchange
It is important to note that many companies offer a ‘dual service’ that allows users to have a cryptocurrency wallet and further buy and sell cryptocurrencies. An example of this is the Exchange and Wallet service offered by Pilsenga.
What do you think about this topic? Would you like to learn more about cryptocurrency exchanges?
If you are interested in Pilsenga’s products or services (including the exchange service), you can visit our website and register on our platform by visiting the following link.
