Where to invest in cryptocurrencies?
Since cryptocurrencies are digital money, we will not receive our "goods" in physical form, but only in the form of an electronic record in our virtual wallet. For many, it may seem that the process is complicated. In fact, it is not much different from exchanging PLN for another currency at an online exchange office. For the conversion of resources, e.g. Bitcoin is served by exchange offices or exchanges. The latter are quite numerous, and each platform differs slightly from one another. How then to find that safe?
Ranking of cryptocurrency exchanges
Both novice investors and more advanced ones can use the 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 that the compilers look at. Typically, investigators aim to include key parameters such as the following. Turnover, security, user affordability, or incident response. For prospective users, these are key data that should be checked before transferring any funds. Cryptocurrency exchanges and their ratings can be found m.In. On https://cryps.en/ranking-gield/ .
Liquidity and fees
When committing funds to any asset, we want to know in what time we are able to exit the investment. In the economy there are more and less liquid instruments, e.g. Real estate is usually more difficult to sell compared to the exchange of PLN to EUR and vice versa. Therefore, knowing how liquid a particular exchange is will allow us to choose one where buying and selling takes place daily with high frequency. For users investing in the short term, this is crucial. As well as the transaction fees that are associated with entering into transactions. If we want to realize a small profit, the question is whether commissions will not "eat it up" for us. Knowledge of this will allow you to manage your assets in an informed manner.
Security and incidents
Crucial to the credibility of the exchange are security and incident response. Let's focus on the former element for now. 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. In addition, 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, among the organizational safeguards one should mention 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 "safe" platform. good practices.
Incidents can affect any exchange. Hackers exploit equally the weakness of individual users, but sometimes they can carry out a clustered action targeting the exchange itself. Such an attack in May 2019, targeting Binance, one of the top-rated platforms, resulted in $32 million being stolen from customers' wallets. The owners rose to the occasion and refunded the affected users in full. This approach actually builds partnerships. This is the kind of information you can learn about by following the ranking of cryptocurrency exchanges.
The adventure with cryptocurrencies is not only interesting, it can be very profitable. Of course, losses also come into play. It all depends on what one's expectations and investment horizon are. No less, when we decide to enter the world of virtual currencies, it is worth doing it in a safe place. A kind of signpost and help in making a decision can be the ranking of cryptocurrencies. On the basis of it, we will get acquainted with the opinion of the exchange, securities and other parameters that affect the evaluation of the platform. Armed with knowledge, we can proceed to action.