Benefits You Can Get From Knowing About
Crypto Exchanges
Knowing how to trade on a crypto exchange can offer several benefits. For example, there is less risk and more diversity, and trading is possible across international borders. A good exchange will also have a support network to guide novice investors. Regardless of experience level, learning as much about cryptocurrencies as possible is vital.
Less Risk
Whether you are a novice or a seasoned investor, knowing how to choose an OKX crypto exchange will reduce your risk. A well-known exchange is likely to have a good support network, and they can help you find the best cryptos. You are staying with a trusted exchange, and seeking education before investing is advisable.
Easy to trade across international borders
Cryptocurrency exchanges can make it easy to trade across international borders. The public ledger framework and anonymity of cryptocurrencies make this possible. As a result, they don't require complex conversion calculations or central bank oversight. However, they do need to follow regulatory changes across the globe.
More Diversity
Despite its reputation as a "bro" culture, cryptocurrency is increasingly becoming a hotbed of inclusion and diversity. The decentralized nature of blockchain-based fintech, an alternative to traditional finance, may be heralding a new age of inclusivity. While the worlds of finance and technology have a long history of sexism and male-dominated culture, blockchain's inherent values of diversity and inclusion may serve as a great equalizer.
KYC Requirements
To protect your assets from fraud, knowing the KYC requirements of your cryptocurrency exchange is imperative. Many large trading platforms have begun requiring users to verify their identities. These companies are relying on public domain data - information obtained from news, web cookies, and social media channels - to make these verifications. This due diligence allows crypto exchanges to understand their customers better and prevent fraudulent activity.
KYC is a cost-intensive process. It involves sending documents and customer information to third-party verification companies, which can take time and money. Additionally, it requires additional staff to perform verification. The shortage of qualified candidates for compliance positions has led to steep increases in salaries for compliance professionals.
Lower Fees
To use a crypto exchange, you need to know what to expect from their fees. These fees vary depending on the size of the transaction and can add up to as much as $60. While a fee of this size isn't unreasonable for a $1 million transaction, it can be insane for a $3 coffee. Moreover, fees can fluctuate depending on how busy the network is. Generally, the more traffic on the web, the higher the fees will be. This is similar to paying tolls on the highway during rush hour.
The fees charged by cryptocurrency exchanges typically amount to a percentage of the total purchase amount. Some can charge as much as 1.5%. Other exchanges cut out the middleman and offer extremely low fees.
It offers interest-bearing staking accounts
When earning interest on your crypto assets, you should know that the situation is not as secure as with a bank or credit union account. However, there are some ways you can make use of interest-bearing staking accounts. These accounts are similar to traditional savings accounts. Some will give you a variable rate, while others offer fixed rates. The interest rates on these accounts are very generous, often reaching 10% or 20% per year