Trust is a 4 Letter Word – I wouldn’t lie to you!
Written by; Allesia Pomopliana …
*New traders often have a hard time understanding that a crypto trading exchange is basically just a tool to move currency — “move” being the key word — and “fast” being another!
A currency exchange, whether fiat and/or crypto, is a dynamic environment that moves quickly. It’s not static. When it comes time to join a trading platform, it’s not a decision you should make lightly .
Research thoroughly, and think carefully BEFORE you register to trade, because once you flick the switch things move quickly and there is no time to consider whether you made the right decision.
So, how do you choose the right trading platform? It’s easy if you know a little bit about how the system works. In many respects crypto exchanges are like traditional trading houses. The biggest difference is that crypto is still so new it is not as well regulated as its older cousin, fiat. Government organizations, like the SEC and CSE are moving towards regulation, but there is still a long way to go, which means you will have to execute due diligence mostly on your own, and of course in part through forums, as in, what do your peers say?
The most important element is TRUST!
Do you trust the trading platform and the people behind it? Before you make a large commitment, start slowly and research the company thoroughly, especially core team members and their track records.
In a sense, it’s a team effort, as in, you have to trust that the platform trading team knows what they are doing, and that they are in the game with you for the long haul. You also want to make sure they have a real street address. I know it sounds simple, but there are way too many trading platforms built on air. They should be avoided because hot air disappears in a single breath — and when it dissipates, your money evaporates!
In order to establish trust, first, look at their whitepaper, which is basically their technical business model, and then at their leaders. Is the team experienced? Are they educated? Are they cohesive in their plan? Is their technical plan and business model plausible? Do they look trustworthy — we all possess intuition, so use it. Literally, do they “look” like traditional business people, or do they look shady — trust your Mt. Gox gut. Most importantly, do they have a track record you can see that is thoughtfully designed, or do they make “too-good-to-be-true promises?”
Look carefully into the trading team’s backgrounds, and not just at the info they provide on their websites. For example, and because they are managing your wealth, you need to find out if they have a criminal history — have they been accused, charged, or worse, convicted? The first two points aren’t rock solid indicators to avoid them, but, if major players in the company have been convicted of criminal activity, you might want to take a pass because there are a lot of other great companies and trustworthy people from which to choose.
If they make implausible
or empty promises … run.
Crypto trading is a business,
not a reckless game.
The reality though is that crypto trading is still like gambling because it’s so volatile, plus, for the most part, it’s still largely unregulated. It’s the nature of the beast, just like the internet was back in the 80s. Crypto and blockchain are the wild west with little regulation and a lot of experimentation. It’s why you really need to trust all the people involved if you want to SLAM DUNK trades.
Don’t just check out the leaders of the organisation, research their employees as well. Check out their hiring practices. Are they really growing as fast as they boast? If so, they will probably have an active CAREERS section on their website. Look at their job listings carefully though, because you also don’t want to get involved with a company that “churns” employees — roller coaster hiring and quietly firing to make it look like they are growing. Are they a well-run company, or simply faking it until they collect on the ICO and disappear? Check out what news media says about them too! Social media forums are great, but be careful because they can be manipulated.
Who exactly, is giving the trading platform the “vote of approval”?
And btw, bigger is not necessarily better.
Smaller companies often move faster as trends evolve, and react quickly to the environment in this very volatile financial landscape.
Speed is critical!
Not only does the SEC lay criminal fraud charges, traders also have legal recourse through civil suits, and they are lining up for the opportunity to sue and hold ICO and trading platform scam artists accountable.
The exciting part of crypto trading is that the ride is wild, and although we will probably never again see the big gains of 2017, if you make the right decisions it is possible to do quite well financially.
And that, my friend, is the lure, so, happy and safe trading!