As a crypto enthusiast in South Africa, here are some points to consider before choosing a crypto exchange for your investment activities;
Verify The Exchange’s License To Operate
The FSCA provides licensing guidelines for CASPs (Crypto Asset Service Providers) in South Africa, this is designed to regulate how they operate, ensure the security of investors, and also curtail fraudulent financial activities in the sector. Therefore, it is important to transact with verified South African crypto exchanges. Before creating an account on any trading platform, ensure that they are listed in the FSCA’s directory of registered service providers. Note that this does not ensure the safety of your funds on any platform, always apply risk management strategies and hold your crypto assets in your personal wallet.
Evaluate The Platform’s Provision For Security And Customer Support.
Reliable cryptocurrency exchanges publish their security strategies to inform users on how they keep their assets safe. Evaluate the security information provided by the exchange and also their security history. Also, ensure that the platform has a responsive customer care facility to assist you when needed.
The intuitiveness of the User interface and Liquidity for your trading volume
To improve your experience as a user, a well-arranged user interface is important. Before creating a trading account on an exchange, review the platform’s design to ensure that you can use it easily. Depending on the volume of your trades and your trading strategy, sufficient liquidity is important when considering an exchange in your region to use. Study the daily trading volume and the spread between order levels on spot and derivatives trading platforms. Sufficient liquidity prevents loss of profit due to high slippage.
Support For Your Trading Strategy And Assets
Review the services available on the exchange, the daily trading volume, and the technical capability of the exchange you wish to use. Many of the best crypto exchanges in South Africa only support spot trading and on-ramp crypto trading, platforms like this are not suitable for futures and perpetual trading. Other platforms might also not support trading bots and are not suitable for experienced traders who wish to automate their trades. Before creating an account, ensure that the assets you wish to trade are listed on the platform and that you can perform the desired activities on the platform.
Available Miscellaneous Services.
The availability of secondary services and features such as passive income programs, copy trading, investment advisory, and promotional programs is another important factor to consider while choosing an exchange to use in South Africa. While these services may not matter to your primary investment/trading procedure, they could contribute significantly to your user experience. It is, therefore, important to look out for them before creating an account on an exchange.
