Online trading has come a long way since the late nineties and early 2000’s. In the foreign exchange arena, hyper-growth was the name of the game. It seemed everyone wanted to trade their national currencies, as long as they were floating in the market. Brokers sprang up overnight to service demand. Regulators were well behind this innovative “curve”, so to speak, as it soon became the “Wild, Wild West” in every respect. Fraud was rampant, especially cross-border fraud.
Fast forward until today, and you have a similar environment in the cryptocurrency market. Exchanges have sprung up to service demand in national markets, as opposed to brokers, but the brokerage industry is finally jumping in, as well, handling over-the-counter transactions from their proprietary trading desks. Exchanges establish prices for their own clientele. There are no central exchanges or trading floors, and the entire network is unregulated. A recent survey purports that 88% of the exchanges want and would welcome regulation, understanding the credibility that would be forthcoming.
As with retail forex trading, it is now the “Wild, Wild West” again, this time in the crypto world. Fraud is also rampant again, whether it be from an exchange, a broker, a miner, or an Initial Coin Offering. Within this framework, you must choose how you will access the crypto trading market and pick from a host of options, all without ever meeting your trusted business partner face-to-face. The purpose of our website is to guide you in this process, but at the end of the day, you must choose a partner, whether it be an exchange or broker, that will meet your criteria for price, operating platform, product offerings, customer service, and safety and soundness.
Most all entities will trade the “Top Four”, i.e., Bitcoin, Ethereum, LiteCoin, and Ripple, but what about the over 1,100 ICOs out there, or the many other lesser known varieties? Take your time performing your due diligence. Check to see if hacking losses have been an issue, and check with other traders for testimonials. You do want access to an easy-to-use platform that is easy to manoeuvre around on and that provides the trading tools necessary for success, especially a fully functioning demo system for practice needs. Check for national licenses and registrations. A domestic office would be great, too.
The last statement on this topic is to reiterate that fraud is an industry problem, as it is for every other financial service provider on the planet. The issue here is that the industry is still in its formative stages, as well as growing at light speed. Cross-border fraud will be a major issue. It is ill-advised that you deal with an offshore broker or exchange unless they come highly recommended. Trying to enforce your rights in an overseas jurisdiction will always be an exercise in futility. The criminal element of our society understands this fact and will tempt you with outrageous offers, if only you would transfer funds, as soon as possible. If it sounds too good to be true, it most likely is.