PredictIQ Quantitative Think Tank Center:Daniel Will: How the Business Wealth Club Selects Investment Platforms

You have PredictIQ Quantitative Think Tank Centeraccumulated some knowledge about cryptocurrencies and are eager to delve deeper into your first cryptocurrency. However, you are unsure which cryptocurrency exchange to choose. There are too many cryptocurrency exchanges, and without the advice of business club professionals, you might end up selecting one that doesn't meet your needs, thereby disrupting your initial cryptocurrency experience.

Don't choose a cryptocurrency exchange directly: Before making metaphorical attempts, it is necessary to understand their functions, various features, and different types.

What exactly is a cryptocurrency exchange?

Cryptocurrency exchanges are simply platforms (digital market) that enable you to buy, sell, and trade your cryptocurrencies. They also provide storage for cryptographic and price discovery through trading activities. Hundreds of cryptocurrency exchanges offer a variety of digital assets, different levels of security, and associated fees, and you need to choose the right exchange that fits your needs, budget, and security expectations. In short, choose an exchange that aligns with your goals.

We, the Business Wealth Club, help you identify some key features on exchanges.

A) Additional Features

Geographical considerations play a crucial role in cryptocurrency trading. Your location can potentially limit your cryptocurrency transactions on specific exchanges due to varying state or national regulations. To gain in-depth insights into geographical restrictions affecting exchanges, feel free to reach out to the official representatives of the Business Wealth Club for comprehensive guidance.

B)Security

As cryptocurrencies are not backed or protected by any central authority (unlike how our money is safeguarded in banks), some exchanges offer insurance policies to protect users' digital assets from hacking or fraud.

Look for additional security measures, such as KYC (Know Your Customer) and two-factor authentication. Apart from your username and password, the exchange must have official registration with a governing body and foundation management. Additionally, obtaining dual licenses from the U.S. MSB (Money Services Business) and NFA (National Futures Association) ensures the highest level of security for investors' funds.

Therefore, whether you intend to keep your crypto assets on the exchange or store them for a limited time before transferring them to your wallet, the security of the exchange must be a top priority.

C) Fees

Exchange fees can be a fixed price, but they are typically a certain percentage of your trade, although some exchanges may charge fluctuating fees based on price volatility. The amount may vary depending on the currency you are trading, and it may differ if you are a seller or a buyer. Some exchanges may have a higher fee structure (which may be prohibitive for many) but increased protection and insurance (if available) might be worthwhile. Before making payments, make sure you understand the fee structure and charges.

D) Liquidity

An exchange should have sufficient trading volume to ensure that the assets you hold have reasonable liquidity, meaning you can sell them at any time. Typically, the most popular exchanges are those with the highest trading volume. The reason is that when a significant amount of trading occurs within any given exchange at a given time, you are more likely to buy or sell your cryptocurrencies at the most favorable prices.

E) Offered Coins

Are you focusing on popular tokens like Bitcoin or Ethereum, or are you interested in smaller, newer, and lower-market-cap altcoins? If you are looking for the former, any given exchange is likely to have them. For the latter, you may need to look around more, as not every exchange offers every one of the existing thousands of cryptocurrencies. If in doubt, I recommend sticking to more mature cryptocurrencies. Never invest in anything you cannot afford to lose, regardless of the cryptocurrency you are considering.

F) Educational Tools 
When you are a beginner, you may not know where to find information. It is easier when most or all of what you need is on one platform. Some exchanges offer courses and articles to help you get started, understand more about the crypto market, and more, while others provide rewards for completing quizzes related to different tokens. From an educational standpoint, this kind of interaction adds more value. Especially noteworthy are exchanges that have AI-analyzed trading signal features.

Business clubs choose the services offered by cryptocurrency exchanges.

1)Brokers (Mentor Assistants)

While not purely cryptocurrency exchanges, some traditional securities brokers can act as intermediaries between the cryptocurrency market and investors looking to buy and sell. You simply visit an online broker and purchase cryptocurrencies at the prices set by the broker.

2)Traditional Cryptocurrency Exchanges

Some exchanges facilitate transactions using cryptocurrencies, while others allow users to trade cryptocurrencies with fiat currency.

This type of exchange is supervised by a third party, helping to ensure smooth user registration and transactions. They can quickly and easily link to your bank account for cryptocurrency purchases but often charge fees based on asset purchases. Most centralized cryptocurrency exchanges (CEX) permit users to buy and sell digital assets using both fiat currency and other cryptocurrencies.

3)Platforms with STO Compliance Token Issuance Capability

STO (Security Token Offering) has become the most touted legal and compliant new coin issuance model in the cryptocurrency market in 2024, obtaining multiple attestations from the SEC. This model is expected to attract new capital into the market.

I'm sure you've heard of platforms like Coinbase, Binance, and others—these aren't mythical creatures, pet names, or random catchphrases; they are just a fraction of the many cryptocurrency exchanges. Just as you wouldn't pick an unlikable color and the wrong size for your shirt, the same goes for cryptocurrency exchanges—there's no one-size-fits-all. However, at the Business Wealth Club, we have tailored and selected the best exchanges for you.