Typical Mistakes When Exchanging Cryptocurrencies

At the beginning of any journey, mistakes are inevitable. Sometimes they are very expensive, both literally and figuratively.

The crypto industry is no exception, on the contrary, in a new industry, the risk and cost of a mistake are much higher than average. How to safely exchange digital assets and what should you beware of?

Regardless of whether you are going to buy or sell cryptocurrency, there are quite a few nuances you need to pay attention to, and this applies not only to the exchange rate of XMR to BTC or another cryptocurrency pair.

A significant role is played by the reliability of the platform, the size of commissions, the current restrictions and other features of the platform.

As practice shows, many users lose sight of this and end up losing money out of the blue. Consider a few typical mistakes that novice users make when exchanging cryptocurrencies.

Typical Mistakes When Exchanging Cryptocurrencies

Erroneous money transfers are also possible when using the usual payment systems. However, in many cases they are relatively easy to fix, which is not the case with blockchain. Therefore, the user should be very careful.

The most common user mistakes when exchanging cryptocurrencies:

Ignore The Current Exchange Rate

There are hundreds of cryptocurrency exchanges in the network and FTM to BUSD  exchange rate on each of them does not necessarily coincide with other platforms.

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When it comes to large amounts, even differences in fractions of a cent become significant. To avoid unpleasant surprises, check the current exchange rate before making an application.

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Do Not Check The Wallet Address

It is easy to mix up addresses, especially when it comes to stablecoins that operate on different blockchains.

When sending a transfer in USDT of the ERC-20 standard, make sure that you are sending coins to the Ethereum network.

If the address of your counterparty is based on the Tron network, the money will go in an unknown direction and it will be impossible to return it.

It is better to play it safe and double-check the address before clicking the “Send” button.

Enter The Wrong Transaction Amount

Yes, it’s boring and banal, but checking all the data at the final stage hasn’t hurt. As opposed to overconfidence. The most innocuous of the possible consequences is an overpayment of commissions, but it can be much worse.

Disregard Two-factor Authentication

Two-factor authentication (2FA) provides an additional layer of security when dealing with cryptocurrencies. If your platform has 2FA, use it to prevent unauthorized access and keep your funds secure.

Use Unverified Sites

The number of cryptocurrency exchanges and other exchange services is already in the hundreds, but not everyone can be trusted.

Among them are reliable, dubious and, alas, even outright fraudulent. Make sure that the selected platform is not included in at least the last group.

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Where Is It Safe To Exchange Cryptocurrency

First of all, these are TOP cryptocurrency exchanges, centralized and decentralized. Ratings can be found, for example, on CoinMarketCap.

However, centralized platforms will require account registration, and often KYS. This is not always fast and not always acceptable to the user.

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Decentralized platforms do not require registration, but they are not ideal for a beginner either.

Decentralized exchanges are technically more difficult, the choice of exchange directions and liquidity are generally lower compared to centralized platforms.

An alternative to classic cryptocurrency exchanges can be fast exchange services, such as LetsExchange.

This is a non-custodial platform on which the exchange of more than 2000 coins and tokens is available, including for fiat currencies.

The exchange is carried out automatically and takes a few minutes. You only need to specify the swap amount, select the exchange direction and indicate the address of your wallet.

After replenishing the deposit, it remains only to click the “Exchange” button. We hope that before doing this, you carefully checked all the input data.

There are no commissions on the platform, there are no restrictions on the amount and number of transactions.

You don’t have to worry about the exchange rate – the search engine selects the best offers available at the time of the application.

LetsExchange is a non-custodial service and does not ask for any personal information. You do not have to register and provide scanned documents.

LetsExchange is the optimal solution for buying cryptocurrencies for investment purposes, suitable for both beginners and experienced investors.

Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon