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Informational Guide About Crypto Exchanges – Features A Good Crypto Exchange Should Possess

What Are Crypto Exchanges?

Crypto exchanges are platforms like any other marketplace where people can trade and exchange cryptocurrencies. Crypto exchanges offer a variety of features, including trading but investing, analysing the crypto trend, and various other products and services. Crypto exchanges came into existence after the birth of Bitcoin (BTC). Before exchanges, people had to do mining and use unauthorised forums to trade, which may lead to security risks. The exchanges work as a medium between buyers and sellers, charging commissions from both ends. Therefore you need a bank account to sign up at any crypto exchange. But what features does a good crypto exchange possess? Let’s have a quick view of a good crypto exchange. 

Features Of A Good Crypto Exchange

Crypto exchange work on different models. Some are solely based on trading, and some offer brokerage as they act as intermediaries between the seller and the buyer. Some are based on a decentralised model in which no third party has access to the transactions, while centralised models are under the provision of third parties, known as exchange platforms. A good exchange depends on the following features.

Security

The overwhelming success of crypto is mainly based on the fool-proof security of crypto exchanges. As billions of trading are done daily on various platforms, hackers are always trying to crack the code of transactions. The crypto exchanges are based on the p2p system, meaning no identity other than the users can access the account. Crypto exchanges offer insurance programs which protect users from fraud and hacking. Many exchanges also adopt offline storage features to store the data in case of security breaches. 

KYC Protocol

A good crypto exchange must follow KYC protocol to ensure complete information of the identities doing business on their platform. KYC stands for “Know Your Customer”, as this protocol must be implemented to avoid illegal activities and money laundering. 

Friendly User Interface

Since dealing with crypto is a bit technical and requires more than basic trading knowledge, an appealing and friendly user interface can significantly impact newbie users as they will feel comfortable dealing with crypto terminologies if a step-by-step guide is given by crypto exchange.

If you are searching for a friendly crypto exchange, KuCoin is here to start your crypto journey. The Seychelles-based crypto exchange offers exciting newbie bonuses and deduction coupons, which can be availed on trading fees for new members. Moreover, the users can also customise their trading interface. Whether using Kucoin on an app or website, you can quickly check every trading activity due to its enhanced and simplified contract list. 

Crypto Diversity

A good crypto exchange must include various coins and tokens to provide maximum options to its users. BTC, ETH, and USDT are available primarily in exchanges, but emerging alt-coins and tickets should also exist to explore more options. As of 2022, More than 10k cryptos are available in the crypto world. Thus, a maximum range of crypto will only increase the reputation and business of the exchange.

As the crypto market is volatile, you must be able to make the right decision with the right coin to earn maximum profit. A good crypto exchange must have a trading bot facility which is a blessing in disguise. A newbie or a seasonal trader can select trading bots which will trade in a volatile market, attaining maximum benefits according to the parameters set by the user. KuCoin newbie friendly trading bot “Spot Grid ” helps users to kill volatility by selling crypto at high value and buying at low prices. They are also unique bots like DCA and Future Grid, enabling users to trade without stress.

Transparency & Customer Service

Crypto trading is compatibility new in terms of stock and forex. Thus it needs to keep its policies and services transparent to the concerned authorities and the public. A good crypt exchange may have higher transaction fees. Still, it is an advantage for users as it will be invested in improving the exchange’s security and transparency. Moreover, a good exchange is approved by the government, and maybe tax will also be deducted from the fees making your business legitimate in front of the government. Good customer service also has active customer support ready to assist its users in case of any difficulty during transactions or any other issue.

Conclusion

A good crypto exchange possesses all of the features discussed above, but it doesn’t guarantee that you will achieve only profit by using them. Crypto is a brain game, but sometimes luck also plays a little factor.

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