Cryptos have been making headlines for their meteoric rise in value in the past few months. From $7 to $20 in a matter of months, we’ve witnessed an astonishing run-up in the price of one particular virtual currency – Bitcoin. To understand why you should only trade cryptocurrencies on trustworthy exchanges, you need to look no further than your finances. Imagine if you had access to an unlimited amount of virtual money just a month ago. You could have bought something with that money: a car, house, vacation — anything!
But now imagine that same money coming back as interest on that loan the following month. Suddenly, it doesn’t seem so lucrative to take out such a massive cash advance. The same goes for any other financial investment, really: if you can earn interest on it, then it’s worth paying a higher yield than normal (unless you trust certain people with access to your money). Here are 5 good reasons why you should only trade cryptos on trustworthy exchanges:
Exchange rates are better than bank rates
Many people think that trading cryptocurrency on a cryptocurrency exchange is like playing a high-risk game of Russian roulette. But the truth is that you are much more careful while doing so. You are putting your money on a platform that hosts thousands of coins with a high level of security. You are trusting that these people have your best interest at heart and are not trying to take advantage of people in a time of financial uncertainty. For many, this is the most appealing factor about exchange trading: you do not have to put as much capital at risk.
There is no risk of loss while trading cryptos
One of the most appealing things about cryptocurrencies is that you don’t have to put much capital at risk to make a big gain. What’s more, the risk is limited: if you lose a coin in the process of trading, then you can just “re-load” it on the next exchange and start the process all over again. This is why you should only trade cryptocurrencies on trustworthy exchanges like Biti Codes: you can be sure that your investment is safe with them.
Buying and selling cryptocurrency is as simple as buying from an exchange
One of the most attractive things about buying and selling cryptocurrencies is that you can buy or sell them directly from an exchange. You don’t need to navigate through intermediaries and financial institutions anymore. All you have to do is find an exchange that you trust, buy some cryptocurrencies, and then just sit back and wait for your profits. It is that simple. You can search online for exchanges or buy and sell cryptocurrencies directly from your browser or mobile app.
Exchanges guarantee authentic coins
When you trade coins on an exchange, you need to create an account to manage your trading. This is to ensure that you can identify fakes and scam coins. But most exchanges have a system in place where you can challenge “fraudulent” coins; in some cases, even law enforcement can take action against suspicious coins. This is one of the best things about exchanges: they ensure that your coins are authentic. No one can fake an exchange’s signature.
Exchanges always have low transaction fees
In the online world, you may come across many exchanges that charge you a trading fee. But not all of them should be your first port of call when it comes to trading. There are plenty of legit exchanges that do not charge any trading fees, and in some cases, they may even lower their trading fees in times of market stress. But regardless of how you choose to trade, make sure you are not paying any trading fees when trading cryptocurrencies.
Now that you have an idea of why you should only trade cryptocurrencies on trustworthy exchanges, you should keep in mind that trading is risky. But that doesn’t mean that you can’t try it. Practicing trading can help you improve your skills, and it is one of the easiest ways to start earning money with cryptocurrencies. So, if you are interested in trading cryptocurrencies, we recommend starting with smaller investments to learn the ropes.