How To Avoid Fraudulent Online Crypto Exchange Platforms?

Cryptocurrencies are essentially digital currencies that utilize a particular encrypted storage protocol that allows users to exchange different currencies in a transaction without the involvement of any third party for verification purposes. Cryptocurrencies are pitted as the future of the financial markets due to the diverse role they are capable of playing in the future. Crypto is a relatively new concept and is still in its early phases but many analysts predict a bright future for digital currency.

Like any exchange system involving any type of currency, there are fraudulent platforms that take advantage of new crypto users who are looking to make a quick buck in trading with these digital currencies.

The Investment Center broker Phillip Sanders enters the realm of fraudulent trading platforms that misuse the premise of promoting cryptocurrencies as a priority asset on their platform and scam users out of millions. He further analyses the extensive network of crypto approved trading platforms and isolates the factors that allow users to tell which platform is being dishonest to them.

Mainstream Support

Crypto depends on many factors for its use and some of these factors can be used to define the reliability of a specific trading platform. A trustworthy trading platform has many traits but its primary services include the tools it provides its users in dealing with their assets. Crypto is essentially an asset that can be exchanged in the international markets. There are a lot of cryptocurrencies that are actively traded in the financial marketplace but only a few are mainstream. These include Bitcoin and Etherium. There are other cryptocurrencies also available for trading but they aren’t as stable as the above mentioned.

Any platform that does not provide support for mainstream cryptocurrencies cannot be trusted. This is because it is either a scam or they’re trying to promote their cryptocurrencies that have yet to enter the financial marketplace. It’s a grey area but better safe than sorry because frauds related to crypto can be dangerous.

Blockchain Access

This is where technicality comes in. Block chain is the network that every cryptocurrency is based on. There are thousands of cryptocurrencies in the world but only a few have their very own blockchain. This is the difference between mainstream crypto and simple crypto. Since the crypto software is open source, anyone can create a cryptocurrency but creating an entire blockchain system requires years of investment and support to be a viable currency. So, any crypto with a different name claiming to use the Bitcoin orEtherium network is simply using a play on words to confuse the user into buying into their crypto.

Bitcoin has its blockchain and so does Etheirum. They do not outsource their chain to other cryptos so do not fall for any misleading advertisements that promote themselves as such.

Provision Of Trading Tools

Cryptocurrencies are assets. They require custom tools that trading platforms provide to utilize them as assets in trading bids. If a platform does not provide the essential trading software needed to trade with crypto then you should probably avoid it even if it claims to support mainstream cryptocurrencies. Sites like this are simply looking to get access to your financial information and are probably scams.

Closing Argument

Cryptocurrencies represent the next generation of transaction systems and they are essentially the future of universal currencies. While there are obvious flaws in the system, its benefits cannot be denied. Multiple online trading platforms are verified hosts of cryptocurrencies as their assets and any beginner should start with platforms that are reputed to be beginner-friendly just to stay safe. This article does not villainize unverified trading platforms rather it is a guide for beginners on how they can stay safe from potential scams online.