Crypto

How to choose a cryptocurrency broker

Written by CHANEL G.

As an intermediary in the transactions, a brokerage has custody of the clients’ assets.  In other words, just like in a bank, you keep your money in the company’s property, trusting that whenever you need it you can transfer it or withdraw it as you wish. What to evaluate in a broker (exchange)

  • Confirm the existence of the company: search for the CNPJ, check the location of the company, the corporate structure.  Check  Linkedin if she has real employees and who the directors are.  Check if they are serious people, with relevant professional backgrounds.  
  • Find out about liquidity and volume: specialized sites like Bitcoin or Cointrader Monitor list Brazilian brokers.  On these sites you should consider the relevance of the broker and whether they will be able to make your assets available as soon as you request.
  • A company that assures income should be viewed with caution.  Bitcoin is a volatile currency, and it is not possible to predict the appreciation or devaluation of the currency.  Profits must be made exclusively from the trading strategy you define.
  • Transaction deadlines: research the deadlines for deposits and withdrawals in reais and cryptocurrencies.  Here at Coinext, within banking hours, they take up to 15 minutes.  In addition, you can request a withdrawal at any time.
  • Security: Make sure the exchange has protection against intrusion, in addition to 2-Factor Authentication (2FA) and Account Validation to ensure even more security for your trading.

run away from the pyramids The logic of this type of fraud is simple: you give money in exchange for promises of earnings while publicizing it to more people to join the same business. While new people are coming in and putting in money, the company’s promise is fulfilled.  In any case, the company has cash flow that it can use to pay previous users.  A market can only sustain it for a few years, until the promised gains don’t take shape in the reality.  The payment made by new users at the entrance are used to pay the old ones, but at some point, the new one’s entrance is not enough to pay the old ones.