Understanding how crypto exchanges work can be the deal-breaker between succeeding or failing in cryptocurrency investment. Every exchange platform differs from another significantly. They can differ in basic operating principles like registration to complex features such as transaction speeds and analysis tools.
For starters, a cryptocurrency exchanges platform must offer you unquestionable security, a variety of cryptocurrencies and trading pairs, unlimited amounts for trading, and stable rates. You should get such features when using Godex – cryptocurrency converter. Moreover, using Godex to convert crypto gives you over 200 digital currencies to choose from.
In today’s article, we will share 5 tips for using Godex as a cryptocurrency exchange; stay tuned to learn more.
1. Have a Clear Trading Motive
Having a purpose for venturing into cryptocurrency conversion might seem like an obvious idea. However, more often than not, people get lost in its intricacies.
Be careful not to get caught up in the fear of missing out. This is where you see people making profits on certain trading pairs and get enticed. As a result, you rush into it because you also want to be part of the winning team. The catch here is that due to the volatility of the market, by the time you’re making a conversion, the supply of that particular pair will have gone up and its price will have started declining.
There are a lot more factors that could fetch you a dipping cryptocurrency if you’re not careful. The idea is, therefore, to remain focused and do your research. Perform a comprehensive market analysis before choosing to convert between any two trading pairs.
2. Provide All the Required Information
When using Godex to convert your cryptocurrency, you will only need to provide the Sender and Destination addresses. However, in case you have technical difficulties or questions regarding your transaction, Godex may ask for your email. Although not necessary (according to Godex), this helps inform you of the progress of solving your issue. Therefore, if you want to avoid losing your money, providing your email is important.
Many issues can arise with a transaction. However, you must remember that transactions are irreversible processes – once it is entered into a block, it cannot be altered. This is one of the basic features of the blockchain, the technology supporting cryptocurrencies. Be careful and provide all the information required to avoid unnecessary loss of your money when using Godex.
3. Specify Additional ID When Converting Designated Cryptocurrencies
Converting cryptocurrencies requires background knowledge about the trading pairs you’re engaging in. You’ll realize that when using Godex, you may be asked for an additional ID. However, this does not apply to all digital coins but only a certain few.
The reason for that is some currencies use additional IDs to process transactions. This ID is also used as a transaction identifier. Some examples include a Payment ID for Monero, Message for XEM, Memo for Steem, and Destination Tag for Ripple, among others.
If you’re provided with this additional ID by Godex, ensure you use it to send coins. Failure to do so can result in you losing your funds.
4. You Need to Have a Cryptocurrency Wallet
Godex.io does not store cryptocurrencies; therefore, you’ll need to have a separate wallet to store the coins after conversion. In perspective, you cannot convert Bitcoin to Ethereum if you only have a Bitcoin account. You must also have an Ethereum wallet to store the converted coins. Godex will request you to provide a destination address, which should be the address of your Ethereum wallet.
A wallet address is a unique, valid identifier that acts as a virtual location where digital currencies can be sent. Each cryptocurrency has its official wallet. With that said, there are also multi-currency applications that store different crypto coins.
A cryptocurrency wallet can be cold storage or hot storage. Hot storage wallets store digital coins online, while cold storage wallets keep them offline. Cold storage wallets are much safer and less susceptible to hacks than hot storage wallets.
You can get your crypto wallet address by visiting the official website of your target crypto.
5. Diversify and Spread the Risk
Investments, in general, can be quite unpredictable. Cryptocurrencies are even worse because of their volatile nature.
Godex offers fixed rates, which means that you receive the exact amount that was specified in the transaction order. However, fixed rates do not apply if your transaction takes a long time to process. In such a case, the money will be exchanged at the current market rate at the time of exchange. This means amounts may differ on the lower or higher side than the initial amount indicated.
You can overcome such eventualities by diversifying and spreading your risk over several trading pairs. Remember, Godex offers over 200 coins and their trading pairs, so don’t limit your options.
With that said, the tips discussed above should set you on a perfect course when using Godex.io as your cryptocurrency exchange platform.