Have you ever experienced Cryptocurrency trading? or ever struggled to get into the Cryptocurrency trading Battle? Well we got you something useful yet informative this time. In this blog, i aimed to hit you guys with the things you must know before doing cryptocurrency trading.
Let me list out the few interesting and useful facts one by one,
Top 10 Crypto Currency In The Trading World:
- Bitcoin cash(BCH)
- Stellar (XLM)
- Cardano (ADA)
(data may vary as per the market)
Top 10 Crypto Exchanges In The World That Runs With Decentralized Exchange:
As per the recent survey:
How Can You Buy Cryptocurrencies:
There are two way of buying crypto coins. Either you can buy it for FIAT currency (like USD, INR, EURO, etc) or you can buy it by paying crypto coin. On the row, few application may not allow you to buy coins by paying crypto coin because it may differ for each application.
To buy using ‘FIAT’ currency you need to register an account in any trading application and you need to finish your KYC(as per government norms). Then you can add FIAT currency using any payment options like Credit Card, Debit Card, Net Banking or other wallets. Once your account is verified by Admin, then you’re all set to buy crypto coins.
To use Crypto Coin, you must have some other Crypto coins like ETH, XRP or any other coins on your wallet. If you have any crypto coin and if you have the registered account on that particular application then you can simply buy it by paying crypto coins.
Operating Single Or Multiple Country:
Before you start trading you must verify that whether the application is operating the trading in a specific country or they’re running it for multiple county, if that a case for single country then verify whether they got a proper document and permission from the government or not. In Case of multiple country verify that they have also owned the same permissions & documentation for all the country. Also don’t forget to verify that crypto currencies trading in that specific country is legal or not.
How To Deposit Balance In Account FIAT or CRYPTO:
To deposit the balance in your wallet, you have to register an account in the application and need to finish the documentation as per application rules. As soon as you done with the documentation, get your account verified by the Admin. Once all it’s done then you will be eligible to add amount in your wallet.
Adding FIAT amount is very simple as like other payments, because you will have multiple payment option like credit card, debit card, net banking, etc. (options may vary as per the payment gateway).
Adding Crypto balance into your wallet will be bit complicated but not very long process. There are two way of depositing Crypto balance into your wallet, first option is that you can buy any Crypto coins by paying FIAT balance and it will be added to your wallet.
Second option is you need to get the deposit address of your Crypto coin from the wallet section and you can share that address to someone who is ready to pay you the Crypto coin.
Note – Both kind of transaction will deduct some amount from your wallet as fee and it may vary based on the application you use.
How do you trust the startup:
For trading, before trusting any web application one must check these points,
- How many users they have in their exchange application, and do they really have the decent count on number of total users.
- Check the daily minimum or maximum limit for the transaction for each user, do they have specific limit for daily transactions.
- Also check the rules and regulation for withdrawing or depositing amount into wallet, Because some will not allow us to deposit and withdraw immediately or or they might possess some other rules.
- Look out the reviews and ratings of that website.
How the customer thinks about the exchange:
At present trading system, there are two kind of people:
One who has interest in trading/exchange but do not know much information about it. Second, who have been trading for a long time and owns good knowledge about it. Diagonally, both people have different opinions on trading and exchange. Certainly, The people who has never done any trade might have insecurity of losing money or getting cheated. But, the people who have been trading for long can sense the market based on their experience.
Are the Crypto coins getting hacked?:
Yes, it happened many times, mainly on ‘Bitcoin’ and ‘Ethereum’. Hackers tried on these coins and they witnessed few success also, below are the some history of hacks that were happened:
|The Mt.Gox Hack||2013|
|The 2011 Hack: A Sign of Things to Come||2011|
|The 2014 Hack: The $473 Million Robbery||2014|
Check for vulnerability?
Security is the inevitable factor for digital currency exchange, because exchanges stores highly confidential data so beware of the possibilities of vulnerability and try to fix the strong security walls.
Security in Crypto exchange:
So knowing that risk, you would think that all the exchanges are trying to protect users by taking necessary security actions ? But, that’s not the exact case , in below data you could see the exact the status of security practices involved & not all the people are protected with high level security.
Security Keys Involved In Crypto Exchange
|Security Best Practice||Percentage(%)|
|Using Vulnerable libraries||25.90%|
|Don’t Expose Server Information||20.14%|
|Application Security Protection||15.11%|
This table shows that out of all less than 40% of them are using headers like the Strict-Transport-Security header or the X-XSS-Protection header. 20% expose server information which isn’t a security vulnerability in itself but that clearly shows the low level of security best practices implemented. And 26% of them use frontend libraries with known vulnerabilities. Only 2% implemented a Content-Security-Policy.
Check The Performance Of An Trading Application?
One of the major thing we must verify is that the application we’re trying to use is backed with good performance or not. Because all the Crypto trading mainly depends on the performance of the application. By change if the application got to be slow then the entire transaction may get delay or fail due to the processing speed of application.
For performance you can check below things:
Are they running their own node server.
Do they have multiple node server for each coins.
Do they have load balancer for the application when there’s a sudden raise in users counts.
Best To Read: Rippled Server Setup on Ubuntu 16.04+
Do they have support team?
Do they have 24/7 support team in case of if any of following cases,
- Transaction failure or application crashes.
- Payment related issues.
- When account blocked or not able to access your account or just any other server related issues.
- Before investing a single rupee on trading, check for grounded support team to resolve all these issues.
Before doing anything, verify the SSL certificate is original or not and check whether it’s verified by the trusted SSL provider or not.
Do They Offer Secured API?
Just an another way to verify the application security, because when they have Android or IOS application they must also have the API. So check for API so that user can do secured transactions and perform any other operation through API which will highly help us to secure the application.
Do They Have 2 Factor Authentication?
An extra layer of security that is known as “multi factor authentication”, this will give you more options to add security to your account. And, to acquire all this authentication, one must use google authenticator app. Also most of the trading websites are providing this authentication so it’s highly required to check for 2 Factor Authentication.
That’s it guys, hope you will find it helpful and soon i’ll pick another interesting topic and feed you guys with more informative blog. Also you can read more technical blogs on our largest blog repository which would be perfect place to learn about all the latest technologies pinned with intellectual topics, parallely don’t forget to share us your thoughts and queries on the comment box. We’re glad to help you out.