Finding a platform to convert cryptocurrency is an easy task. These days there are loads of reputable businesses that will allow you to swap between both fiat currency and various digital assets.
That said, there are also some shady platforms. The internet is full of scams associated with the cryptocurrency industry and sometimes, little known exchange platforms fall into that category.
In this article, we’ll show you exactly how to stay safe when choosing a trading venue to convert digital currencies for either national currencies or other crypto assets. With our tips, you should avoid falling foul of any shady operations!
Why Do You Need a Currency Converter?
The first thing you need to ask yourself is why exactly you need a currency converter. Some cryptocurrency exchange users want to convert their holdings to fiat currency to withdraw. Meanwhile, others want to swap LTC to ETH, ETH to XMR, or some other crypto asset to another to take exposure to the price action of a different cryptocurrency. Therefore, while some people looking for crypto-to-fiat exchanges, others are in search of an LTC to ETH converter.
If you’re wanting to convert a digital currency directly to dollars, pounds, euros, or yuan, you’ll need a platform that supports fiat deposits and withdrawals. You’ll be well catered for here. The most reputable exchanges in the industry are often those that feature fiat exchanges. This is because they require licenses to deal with national currencies and relationships with banks to facilitate 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
The first places you should visit when you begin looking for a reputable currency converter are review sites. There are lots online that will provide detailed overviews of the services different exchanges provide, as well as how to use them.
When you’re comparing different platforms, a good thing to look out for is the age of the company. While brand new companies can be perfectly trustworthy, it’s much safer to go for an established trading venue. If an exchange has operated for years without security breaches, exit scams, or any other strange goings-on, they’re more likely to be reputable.
Check Social Forums
Review sites can provide a great starting point. However, fake reviews certainly do exist. Therefore, you shouldn’t take one positive review as rock-solid evidence that you’re dealing with a trustworthy company.
When you’ve found a potential trading venue, search Google for “[exchange name] + Reddit” or “[exchange name] + Bitcoin Talk”. Social forums like Reddit and Bitcoin Talk are the places where you’ll find real users discussing their experiences with different companies.
Admittedly, fake and sponsored posts still exist here too. However, those suspected of paid promotion or recommending known scams are usually banned from commenting quickly. If a service is legit, it’s usually fairly obvious from a quick browse around a forum!
If you don’t see any reference to the platform you’re considering, you can always ask a question on Reddit or Bitcoin Talk yourself. Forum users will respond within a few days with their recommendations and reviews of the venue you’re asking after.
Importantly, if you’re at all in doubt of the legitimacy of a currency converter, don’t use it! There are plenty of legitimate platforms and it’s easy to find them from reviews and social forum posts. There’s no good reason to risk your money with a potentially shady operation!