9 Things to Consider When Choosing Reliable Crypto Exchange
Presently, the crypto market is oversaturated with juicy propositions to buy and sell the most popular and leading cryptocurrencies at a competitive price, right here and right now. However, one should consider key factors when choosing a reliable and trustworthy crypto exchange service provider for financial operations.
- 1. Licensed and Regulated Exchange
- 2. Blockchain Analytics Tool
- 3. Automated ID Verification
- 4. Genuine Customer Reviews
- 5. Security Concerns & Sensitive Data Protection
- 6. Multilingual Website Optimization & 24/7 Support
- 7. Multiple Payment Methods
- 8. Fast Order Processing Time
- 9. Non-Custodial Services
1. Licensed and Regulated Exchange
Licensed cryptocurrency exchanges with core international permits help prevent money-laundering activities and terrorism financing, thus ensuring a safe financial environment and preventing illegal activities. Fighting money laundering and terrorist financing leads to global security, fintech integrity, and business development. Laws to combat money laundering and the financing of terrorism are designed to prevent the financial market from being misused. Failure to understand the risk of using non-licensed and unregulated crypto exchange services may directly impact your business portfolio and, as a result, cause losses. The biggest news of 2020 for the crypto market is the implementation of the 5th Anti-money Laundering Directive (5AMLD), which obligates all cryptocurrency exchanges and custodial wallet providers across the EU to comply with anti-money laundering (AML) regulatory requirements and conduct Know-Your-Customer (KYC) checks. As such, the EU 5AMLD guarantees a flawless workflow between a user and a service provider at all times.
2. Blockchain Analytics Tool
Blockchain offers new prospective opportunities for digital business companies, particularly online crypto exchanges. Essentially, it brings trust between business parties. As public blockchain networks and cryptocurrencies are widely used and accepted worldwide, a broader set of tools is needed to track criminal behavior and prevent illegal money-laundering. And this is where risk scoring and multiple addresses assessment tools come into play to prove the purity of funds. For example, a licensed crypto exchange Switchere, headquartered in Estonia, uses the Crystal Blockchain Analytics tool, enhancing due diligence and AML/CFT compliance procedures. Crystal is an all-in-one blockchain analytical tool that provides a comprehensive view of the public blockchain ecosystem, incorporates address clustering, prevents cybercrimes, and eliminates ransomware. Developed by a team of world-class analysts, the Crystal software boosts a safer financial community.
3. Automated ID Verification
Because mobility, simple user workflow, and convenience are one of the main and differentiating factors when choosing an online service, there is an increased need to add more and more innovative services while ensuring customer security and trust. And this is where Automatic ID verification comes into play. Auto-ID verification speeds up the onboarding process thanks to the digitalization and assures flawless verification and customer-centric approaches. It streamlines and digitizes workflows, reducing manual entry and tedious paperwork. By verifying a government-issued document in real-time, the providers can reduce a lot of bothersome issues when presented with fake identity documentation. Creating another authentication factor with facial biometrics and liveness checks remotely present additional assurance to validate whether or not a document is stolen.
4. Genuine Customer Reviews
A prevailing majority of consumers read online reviews before making a purchase decision. Online reports are publically generated opinions of the products and/or services being offered by a company. Peer reviews have a defining impact on customer behavior to such an extent that consumers trust online reviews just as much as recommendations from colleagues, friends, and family members. Gathering opinions requires some effort from crypto exchanges. Positive reviews with 5-star ratings compel potential clients to use a specific brand.
5. Security Concerns & Sensitive Data Protection
When it comes to sensitive data protection and secure platform architecture, both are of paramount importance because these two key factors can impact your cyber safety and financial portfolio. The selected crypto exchange must be compliant with the recognized industry standards and augment its hardware, software as well as network protection regularly. A solid crypto exchange constantly implements multiple levels of protection (firewall, antivirus, and anti-ransomware tools) to make the cyber-attacks highly unlikely, proactively block the threats and alert the users in case any malicious or suspicious activity has been detected.
6. Multilingual Website Optimization & 24/7 Support
Creating and servicing a multilingual website is of utmost importance for businesses that serve customers in different countries or regions, or are looking to expand to foreign international markets. A website localized into your native language helps establish healthy business relationships between the parties and fosters trust, brand loyalty, and positive user experience with the chosen company. Likewise, round-the-clock customer support services will positively influence direct communication channeling and reduce language barriers.
7. Multiple Payment Methods
More often than not, unregulated online crypto exchanges render crypto-to-crypto exchange services only. However, a decent and reputable crypto exchange will undoubtedly offer an arsenal of different payment methods (including region-specific payment gateways, online banking, and e-money transfer services), whereby the cross exchanges are not limited to the crypto-to-crypto direction only — there you will find fiat-to-crypto, crypto-to-fiat, and in rare cases, even fiat-to-fiat exchange services.
8. Fast Order Processing Time
With high-tech business solutions, increased productivity goals, faster internet, and more smart devices, we have created a need for speed wherever we go or surf the internet. Speed and maximum efficiency characterize the fundamental requirement for modern-day crypto exchanges. We live in a digital age where operational efficiency matters a lot for demanding and capricious consumers. Speed guarantees high scalability, liquidity, and wise asset management. On the contrary, slow order processing means frustration and dissatisfaction with the services provided. Certainly, Of course, if customer satisfaction is prioritized, you shall want to use crypto exchange services that offer fast order processing and quality control management no matter what.
9. Non-Custodial Services
The amount of crypto that you intend to buy or sell must be securely and instantly delivered straight to your wallet. If you do not own your private key, you do not own your crypto assets. Such an option allows for a higher degree of anonymity, security, and data protection. Consumers have absolute ownership and responsibility for their monetary funds and are individually liable to keep their money secure.
As far as you can see, there are a great many factors to consider when choosing the right place to make online crypto purchases, sales, or swaps. Choose wisely when it comes to your own money.