The utility of digital currency has escalated in the past decade. The efficiency of transactions from money transfers to smart contracts and decentralized apps has increased. Cryptocurrency now plays a vital role in the economy of the country and of the world. More businesses are opening their doors to newer ways of payment and embracing cryptocurrency fully. The value of cryptocurrency is determined by its demand and utility all over the world. Digital currency is made easily accessible to everyone through the use of exchange platforms.

The pros outweigh the cons of using crypto and it was a matter of time before it was adopted by the world as a solution to most problems. If you are looking to join the world of crypto and wish to  invest then explore cryptos that are on the rising trajectory such as Ripple then the first and foremost would be selecting a crypto exchange. In case you are eyeing to buy Ripple in INR or any other crypto that is popular and has growth potential, then you have to tick a few boxes before you sign up.  Let us take a look at what you need to look out for while considering the use of an exchange platform.

Factors to look for while choosing a crypto exchange

  1. Safety of funds and authenticity – With the rise in exchanges, it is important to weed out the fraudulent ones and go for the ones who have a well-funded platform and an established company backing it up. Apart from the issue of authenticity, the platform might go bankrupt and your digital assets engaged through the platform may be lost.
  2. User-friendly exchange – Let’s face it. Every enthusiast may not be well-informed. For the ones who are used to trading and have some experience, it is easier to navigate the crypto waters. For those who are relatively new and are looking to expand their horizons, going for a user-friendly exchange platform is useful. There may be suggestions, articles, excerpts from news, and opinions of industry experts to help you. For example, you should be able to see the Xrp coin price along with the pattern of the whole of last year at a glance. This will definitely give you an idea of the ups and lows, events triggering the dynamics, if it is seasonal or an impromptu fluctuation etc.  
  3. Boundaries of jurisdiction and choices of assets – If you are planning to use cryptocurrency for cross-border transactions, then it is important to understand the rules and regulations in your country as well as the other country. It is the job of exchange platforms to guide you in these matters. When you are picking out an exchange, remember to check whether it is legal in the part of the world you need to transact with. Apart from this, there may be certain exchange platforms that do not exchange the cryptocurrency you are looking to trade. For example, not everyone may be interested in trading only in Bitcoins alone. There are a lot of other assets such as Ripple with potential and a robust exchange platform should be able to give the user an overview of all the opportunities.
  4. Trading fees – It is obvious that the platforms will charge for the services they are providing. Most exchange platforms charge per transaction and it is important to know the fees before committing to any one platform.
  5. Reliable ways of adding funds or making a purchase – Most exchange platforms ask for your credit or debit card information to add funds to your account which are then used to buy crypto. If you don’t want to give the information out, then there are some which promote altcoins as well. If you are a beginner and are not inclined towards altcoins, then you can look for platforms that have the option to use UPI or NEFT.
  6. Customer support – The digital world often requires support and it is wise to accept that apps and websites are bound to run into problems now and then. Since the problems are inevitable, the next best thing you can look for is strong customer support. The volatility of the market often means you have a few minutes to turn your investment around. Those precious minutes may cost you a sizable sum. In such cases, it is important to be able to get help. The speed of the customer support team could have financial repercussions that adversely affect the user.
  7. Liquidity – More often than not, investors use exchange platforms to make a quick profit. Just like the stock market, a few minutes can change the value of your assets. Experienced investors often liquidate assets and invest in the next upcoming crypto with potential. It is important to understand the process of crypto to FIAT that is laid down by the exchange to know how much time it will take to sell and withdraw funds from a certain exchange.

The necessity of a good exchange cannot be emphasized enough. Apart from the above-mentioned factors, an exchange with a wallet is a good choice. An exchange platform is supposed to protect you against pump-and-dump, fraudulent cryptocurrencies, and dubious deals. The role of an exchange platform transcends the expectation of facilitating trade. They are expected to educate, spread awareness, predict, warn, and guide investors to a better tomorrow.