5 Things To Consider When Choosing A Cryptocurrency Exchange

The Grayscale Bitcoin Trust GBTC traded higher by another 5.6% on Tuesday as the price of bitcoin soared above $46,000 following news that Tesla Inc TSLA bought $1.5 billion of the popular cryptocurrency.

Influential Tesla CEO Elon Musk has been hyping up cryptocurrencies Bitcoin and Dogecoin for several weeks now on Twitter, prompting some investors to seriously consider investing in crypto for the first time.

On Tuesday, deVere Group CEO Nigel Green said investors looking to buy cryptocurrency should seriously consider which exchange they use to make their purchase.

“Investing in cryptocurrencies remains highly speculative and it is not for everyone - but one of the keys to success would be selecting the right crypto exchange,” Green said.

See Also: How to Buy Cryptocurrency

Choosing An Exchange: Green outlined five things to consider when choosing an exchange:

• Security. Green said exchanges can be easy targets for hackers if they aren’t secure, and there have been several high-profile crypto exchange hacks in the recent past. Green also said investors should look for a system that utilizes multi-factor authentication to avoid fraud.
• Costs. Green said investors should look for exchanges that are honest and transparent about their cost structure.
• Simplicity. Green said you may not always be trading from a desktop computer, so look for an exchange that has an easy-to-use platform on both desktop and mobile devices is preferable.
• Reliability. Robinhood users looking to buy GameStop Corp. GME know all too well how helpless you feel when your platform can't handle surges in volume for whatever reason. Make sure your crypto exchange has handled past periods of volatility without any major outages.
• Customer service. Green says an exchange that has an integrated chat or other fast communication service is a must-have.

Benzinga’s Take: Musk has an army of young, inexperienced investor followers willing to throw money at anything he recommends, and he hasn’t led them astray up to this point. Tesla’s bitcoin investment and Musk’s Dogecoin promoting has certainly ushered in a brand new wave of cryptocurrency investors.