As crypto has grown more popular and valuable, it’s become a big large target for hackers. While exchanges often reimburse those whose coins are stolen, nobody wants to be in that position in the first place. Leading exchanges like Binance and KuCoin have been hacked, resulting in tens of millions of dollars in losses. Alternatively, make it a habit to move your crypto holdings out of an exchange’s default wallet to your own secure “cold” wallet. You can minimize your risk by spreading your crypto purchases across multiple exchanges. These are storage options that are not connected to the internet, making them nearly impossible to hack-although you’ll need to carefully record your passcode or you could lose access to your crypto forever.

If there’s not a lot of volume and you put an order in, that’s called slippage. You could end up buying at a higher price or selling at a lower price than you’d want. If you’re just getting started with cryptocurrency, look for an easy-to-use platform with plenty of educational resources to help you understand this complex, rapidly developing market. If you’re an advanced crypto trader, you may want to make sure your preferred exchange offers the trading types-like limit orders, which can prevent slippage by setting a hard price-and margin you want. Remember trade types involving the latter are still evolving in the U.S., so different exchanges’ offerings may vary over time.

Webull Crypto Trading

Finally, don’t assume that an exchange is available in your country, or even state, just because you can access its website. The right exchange not only aligns with an investor’s goals. The quest for the ideal crypto exchange is a nuanced journey, requiring investors to balance security, compliance, liquidity, usability, cost and diversity. Values but also serves as a trusted partner in navigating the dynamic crypto frontier. Many state and federal governments are still figuring out how exactly they want to treat cryptocurrencies from a legal and tax standpoint.

Do You Need A Crypto Exchange?

Carefully consider the cryptocurrencies available on a given exchange. Low-volume markets could cost you on sales. You’ll ideally want to verify that there’s sufficient trading volume in your target coins to ensure liquidity, so you can easily trade your coins and dollars. The availability of coins alone isn’t sufficient if there are no trades happening. You might be perfectly fine using a crypto exchange that only trades a few coins.

Trading In Crypto

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