Crypto investing is one of the hottest topics, which may have also caught your attention. If you’ve decided to buy crypto but don’t know where to start, we’ve got you covered. There are different ways to buy Bitcoin or other digital currency, but the most popular and easiest option to get on board with them is to use an exchange like Binance. While crypto exchanges generally have a simple signup process, it can still be tricky to get a handle on it, given that it differs from registering for a bank account, for example. However, a few tips can help you understand how to set up an account on a crypto platform. Let’s explore them together.
Choose an exchange with good features and security.
Given the popularity of cryptocurrencies, many platforms are now available to purchase your first coins. However, they aren’t all created equally, so you want to do your research and pick the best exchange. Security is one of the most important features to look for in a crypto exchange because this will give you peace of mind, knowing that your cash is safely stored. Many platforms talk on their pages about the security measures they implement to protect users. Still, it’s also wise to check if they have experienced a cybersecurity incident like a data breach. Other features to look for include:
- Interface. Trading crypto is much easier when you’re comfortable using an exchange. While you can’t see everything on the platform before registering, you can learn much about it by checking reviews. The exchange’s usability can impact your entire experience with cryptocurrencies, and ideally, it should be intuitive and simple.
- Range of coins. Aside from Ethereum and Bitcoin, many other alternatives are available. However, not all exchanges offer multiple cryptocurrencies, so you should stick with a popular platform, as they are more abundant in coins.
- Educational content. Many crypto exchanges also provide high-quality content about cryptocurrencies, allowing you to stay informed from legitimate resources. As a beginner, you don’t know much about crypto trading, so choosing a platform with educational content makes sense.
Check the exchange’s availability in your area.
Accessibility is one of the most important aspects when picking a crypto exchange. You want to ensure that the platform is available in your location, as many of them can have geographic restrictions. For instance, Binance is the leading crypto exchange, yet it isn’t accessible to people in the United States. On the other hand, some platforms only operate in specific areas of the US. It’s not great to know that these limitations exist, and it can get even more frustrating if you register on an exchange only to find out that it isn’t accessible in your area. Hence, once you find an exchange that checks all the boxes regarding features, ensure it operates in your location.
Get through identity verification.
When setting your account on a crypto exchange, you’ll have to verify your identity. This process is known as KYC, the acronym for know your customer.’ This process is important for crypto companies because it allows them to prevent identity theft and money laundering. Unfortunately, the interest of fraudsters in cryptocurrencies has increased along with their popularity, which is why crypto platforms prioritize security. Exchanges generally require personal information such as your birth date, physical address, social security number, and a scanned government-issued ID. You may also have to submit a selfie. Ensure this information is handy so you can get through the process without experiencing any trouble.
Set up 2FA for extra security.
Major crypto exchanges enable you to set up two-factor authentication(2FA). This feature is optional on some platforms, while you must use it on others. 2FA requires two different types of authentication before you log into your account: your password and a code you receive on your phone, email, or an authentication app. The role of 2FA is to help prevent unauthorized access to your crypto account and funds. It’s worth implementing this additional layer of security, as it will make your account less vulnerable to cybersecurity issues prevalent in the crypto industry.
Don’t expect to trade immediately.
You may be excited to start trading cryptocurrencies; however, it’s important to remember that you won’t be able to do so right after setting up your account. The identity verification process can take some time – while on some exchanges, it will be completed in a couple of minutes or hours, on others, you will have to wait days for it. Moreover, you may not be able to purchase your crypto unless you fund your account first. Suppose you do so via bank transfer; the process will take several business days. While some exchanges offer faster ways to buy cryptocurrency, a bank transfer is usually the cheapest alternative.
Do you have to pay a fee to use a crypto exchange?
Generally, crypto exchanges charge fees, as this is how they can remain sustainable. They can be based on factors like the trading activity level and the size of the transaction, but in some instances, they don’t have anything to do with these aspects. It is worth noting that exchange fees differ from network or gas fees, which are more blockchain-specific.
How can you tell if a crypto exchange is legitimate?
Exchanges are a significant part of the crypto trading journey, but not all are legitimate. Hence, it’s vital to ensure you’re making the right choice, and there are some ways to determine if a crypto exchange is trustworthy. For instance, you want to check if a physical address is readily available on the exchange – otherwise, it’s best not to use it. Moreover, reputable crypto platforms have a strong social media presence, a website, and an established history in the crypto community. Before creating an account on a specific exchange, please do your homework to see how reliable it is.
The bottom line
Registering on a crypto exchange can initially feel like a foreign concept, but it’s the same with all the other things you aren’t familiar with. But the process doesn’t have to be difficult – with the tips above, you will successfully set up an account and start your crypto trading journey.
