Where to invest in cryptocurrencies?
Since cryptocurrencies are digital money, you will not receive your “goods” in physical form, but only in the form of an electronic record in your virtual wallet. For many it may seem that the process is complicated. In reality, it does not differ much from exchanging PLN to another currency in an online exchange office. To exchange funds e.g. Bitcoin is used in exchange offices or exchanges. There are quite a few of the latter, and each platform differs slightly from each other. How to find a safe one?
Ranking of cryptocurrency exchanges
Both beginners and more advanced investors may use the following rankings. On the web you can find at least a few places where exchanges are rated. Therefore, the classification of a particular platform may vary depending on the parameters, which are paid attention to by the persons drawing up the list. Typically, investigators seek to address key parameters such as. Turnover, security, user friendliness, and incident response. For future users, these are key data that should be checked before transferring any funds. Cryptocurrency exchanges and their ratings can be found m.in. at https://cryps.pl/ranking-gield/ .
Liquidity and fees
When allocating funds to any stock, we want to know in what time we are able to exit the investment. There are more and less liquid instruments in the economy, for example. real estate usually harder to sell compared to exchanging PLN to EUR and vice versa. Therefore, knowing how liquid the exchange is, will allow us to choose an exchange where buying and selling takes place daily with a high frequency. For users investing in the short term, this is crucial. As well as transaction fees, which are associated with the conclusion of transactions. If we want to realize a small profit, the question is whether the commissions will not “eat it up”. Knowing this will allow you to consciously manage your assets.
Hedging and incidents
Key to the reliability of the exchange are the security and response to incidents. Let’s focus for now on the first element. There are two types of security: technical and organizational. Among the technical safeguards can not do without the SSL protocol, which is responsible for encrypting the information stream. Moreover, two-step verification, additional security in encryption, additional authentication, cold wallets or a whitelist of wallets and IP addresses should be available to users. On the other hand, organizational safeguards include guarantee funds, insurance of funds, internal security, ISO, SOC2 audit, authorization of transfers by employees or monitoring of transactions. Reality shows that these elements make up the so-called. best practices.
Incidents can affect any stock exchange. Hackers equally exploit the weakness of individual users, but sometimes they can carry out a massive action aimed at the exchange itself. As a result of such an attack in May 2019, the target of which was Binance, one of the best-rated platforms, $ 32 million was stolen from the wallets of customers. The owners were up to the task and returned the entire amount to the affected users. This approach actually builds partnerships. You can learn about such information just by following the ranking of cryptocurrency exchanges.
The adventure with cryptocurrencies is not only interesting but can be very profitable. Of course losses are also included. Everything depends on what our expectations and investment horizon are. Nevertheless, when we decide to enter the world of virtual currencies, it is worth doing it in a safe place. Ranking of cryptocurrencies can be a signpost and help in making a decision. On the basis of this we will get acquainted with the opinion about the exchange, security and other parameters that affect the evaluation of the platform. Armed with knowledge we can proceed to action.