Finding a platform to convert cryptocurrency is an easy task. These days there are loads of reputable businesses like LetsExchange that will allow you to swap between both fiat currency and various digital assets.
However, there are also some dubious platforms. The internet is rife with cryptocurrency-related scams and occasionally, lesser-known exchange platforms can be categorized as such.
The forthcoming article will demonstrate the methods for ensuring safety when selecting a trading platform to exchange digital currencies for either fiat currencies or other cryptocurrencies. By following our recommendations, you will be able to avoid being victimized by unscrupulous activities.
Why Do You Need a Currency Converter?
It is important to first determine the reason for needing a cryptocurrency converter. Some users of cryptocurrency exchanges may need to convert their holdings into fiat currency in order to withdraw funds, while others may want to exchange one type of cryptocurrency for another, such as LTC to ETH or ETH to XMR, to take advantage of price movements. Consequently, while certain individuals may seek out crypto-to-fiat exchanges, others may be searching for a converter that specializes in LTC to ETH transactions.
If your objective is to convert a digital currency directly into dollars, pounds, euros, or yuan, you will require a platform that allows for fiat deposits and withdrawals. In such a case, you will find plenty of options available to you. The most trustworthy exchanges in the industry are typically those that support fiat exchanges, as they are required to hold licenses to deal with national currencies and have established relationships with banks to enable deposits and withdrawals.
If you’re planning to trade between cryptocurrencies, your choices will be more expansive still. However, there are certainly a higher number of questionable, less established platforms out there dealing strictly in crypto.
These platforms will often provide many more trading pairs than fully-regulated exchanges but do come with greater risk. While it’s always important to follow our tips below no matter which currencies you’re converting, it’s crucial if you’re not familiar with any trusted crypto-to-crypto platforms.
Check Review Sites
When searching for a reliable currency converter, the initial places to explore are review sites. Numerous review sites are available online that offer comprehensive evaluations of various exchange services, along with instructions on how to use them.
When evaluating different platforms, it is wise to consider the age of the company. While newly established companies may be trustworthy, it is generally safer to opt for an established trading venue. If an exchange has been in operation for a significant period of time without any security breaches, exit scams, or other suspicious activities, it is more likely to be reputable.
Check Social Forums
Although review sites can be a helpful starting point, it is important to note that fake reviews do exist. Therefore, it is unwise to rely solely on a single positive review as irrefutable proof that a company is trustworthy.
Undoubtedly, fake and sponsored posts can also appear on forums. However, individuals suspected of promoting paid promotions or known scams are usually prohibited from commenting promptly. A brief perusal of a forum will usually make it apparent whether a service is legitimate or not.
If you are unable to locate any information on the platform you are considering, you can always pose a question yourself on Reddit or Bitcoin Talk. Within a few days, forum users will typically respond with their suggestions and feedback regarding the exchange in question.
It is critical to note that if you have any doubts regarding the legitimacy of a currency converter, do not utilize it. There are numerous reputable platforms available, and they can be easily identified via reviews and social forum posts. There is no valid reason to jeopardize your funds by utilizing a potentially dubious operation.
Ethan Moore, crypto and stock trader since 2012. Co-founder of Blockwatch experts team.