Trading cryptocurrencies is trickier than it seems. You can simplify your trading journey using the exchange platforms, which offer extensive research, study, pricing analysis, and book purchases. However, finding the best crypto exchange that meets your objectives, works within your budget, and offers all the features required for trading can take time and effort.
There are multiple platforms available online, each claiming to offer something best.
Choosing the best cryptocurrency exchange to trade on might take a lot of work as the Internet provides a dizzying array of possibilities, making a decision much more difficult.
In addition, while some platforms have a steep transaction cost, others have a simple user experience that makes your way more problematic.
So selecting the finest cryptocurrency exchange, users need to consider some incredible factors. These factors can help you in the following order — to open an account and start trading.
Key points
- Crypto Exchanges are used to buy and sell cryptocurrencies.
- Exchange platforms work like brokerage platforms, giving you all the required tools to buy and sell digital assets.
- Regardless of what crypto exchange you choose, keeping your large fund in an offline wallet is better.
So first, understand what crypto exchanges are.
Understanding Crypto Exchanges:-
Crypto exchange platforms are places where trades can sell, buy or hold digital assets. They are similar to traditional brokers and offer all the services required for trading.
How do they work?
If you think crypto exchanges work in a complicated way, Don’t Worry, they are similar to brokers. They will allow you to buy and sell specific cryptocurrencies like traditional brokers.
They will also offer you several security features, such as storage options. Crypto exchange platforms can be accessed using a smartphone, web browser, or desktop.
Factors to consider before choosing the Crypto Exchange
Let us know how to choose the best crypto exchange –
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Regulation
Users should always go with an exchange with a regulatory license. Unfortunately, very few platforms are authorized by the SEC or registered with FINRA. Therefore, it is always essential to check the regulatory status of a crypto exchange before depositing funds.
By assuring the platform regulation, you can ensure the platform’s legitimacy. We will only want to deposit our funds to a crypto exchange where our details are secured, and that’s why it is necessary to consider this factor.
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Crypto Options
You will be amazed that more than 17,000 cryptocurrencies are available in the market. Unfortunately, exchanges can’t provide every crypto on their platform.That’s why it is essential to research and choose the crypto exchange that provides you with more crypto options.
It is a wise decision to go with the exchange offering various crypto assets so that you can broaden your investment horizons. However, if a token isn’t supported on a particular crypto exchange, you may need to create an account on another crypto exchange to access that specific market.
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Fees
We need to pay some transaction fees whenever we deposit or withdraw the amount. So, every platform has a different transaction fee. That’s why you need to choose a platform with minimal transaction fees, so you don’t have more burden.
Another fee you need is the trading commission to pay for your position. However, it is a direct fee that you will be charged for buying and selling crypto.
Every platform charges different transaction fees for trading, so go for extensive research and choose the exchange charging minimal transaction fees.
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Payment Methods
Another important thing that you need to consider is the payment options available on the platform. Many exchanges support various payment methods, so we need to use a platform offering multiple payment options.
It is best to go with a platform that has a legal remit to accept US dollar payments. However, comprehensive payment options give a lot of convenience to the users, so try to go with the exchange providing various payment options.
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Customer Service
Users should always inspect customer service before making any deposit to the account. We would love to have that customer support available 24/7, so we can solve our queries in no time.
The best option is to go with customer support offering live chat or calling service for quick answers. But most platforms provide customer support via email, which takes a lot of time to get a reply from the support team. So, choose a platform offering diversified options to connect to customer support.
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Liquidity
Another feature we should look at in crypto exchange is that the platform should have more liquidity. A forum with higher liquidity allows users to place trades immediately.
The platform with more liquidity will be considered a more stable exchange because it mainly protects from market fluctuations. On the other hand, going with a platform with a liquidity shortage will ensure the transactions are completed on time, and you will avoid the issue of orders not getting placed.
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Mobile App
A crypto exchange should always have a mobile app that provides detailed reports. In addition, the mobile app of the crypto exchange offers various features and benefits like a quick buy or sell option, live market analysis, etc.
We all know that we cannot sit in front of a computer for the whole day, and that’s why an app is essential. It will help to place the transaction quickly by having everything in front of our screen. Mobile apps are always convenient, and that’s why it is a crucial thing to consider.
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Transparency of the Exchange
Transparency is crucial when choosing a crypto exchange platform like highly volatile assets. There is a range of exchange platforms available online but what makes them apart is their credibility and authenticity. We all know cryptocurrencies are non-regulated, so no central authority holds them; hence it is crucial to identify a reliable exchange platform.
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Ease of Trade
User-friendliness is very important when using an exchange platform. The more straightforward the user interface is, the easier you will understand everything. Therefore, it will be convenient for users to understand everything correctly and execute the strategy the way they want to.
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Purchase method
The purchase method varies from platform to platform. E.g., some exchanges accept payment by credit card, while some directly receive payment from the bank. In addition, some platforms only accept payment in cryptocurrency, so if you are a beginner, choose the platform that accepts payment in fiat currencies.
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Supported tokens
Most exchange platforms only support limited coins. There is significant variation in cryptocurrency that different platforms offer. Regardless of the risk, choose the exchange that provides you with the best trading assets.
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Fraud detection
The cryptocurrency world is full of scams, hacks, and malicious activities. Therefore, it is crucial to be sure that the crypto exchange you are using is legitimate and secure.
So look at factors such as the security protocols in place, the reputation of the company behind the exchange, and other measures taken by the exchange to protect user funds. By following these steps, you can be sure that your money is safe while trading on a crypto exchange.
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Location of Exchange
The exchange location is crucial to follow the regulations. Investors must know an exchange’s location to adhere to a particular country’s rules and legislature. Therefore, an investor should often trade with the locally available exchange. It will eliminate the risk possibilities when trading on a foreign exchange platform.
FAQs
Q. How to be sure a crypto exchange is legitimate and secure?
Ans. The most common advice to traders is to choose a reputable and well-known platform. Additionally, you can do your research, such as platform social media presence, online reputation, and website online reviews.
Q. What are the benefits of keeping my assets on exchange?
Ans. Exchange platforms are one of the best places to keep your funds, and they grow over time.
Q. What are the risks of trading in cryptocurrencies?
Ans. Cryptocurrencies are highly volatile assets, meaning their price can fluctuate at any time. Apart from that, cryptos are also non-regulated and prone to several vulnerabilities and security threats.
Q. Which crypto exchange is the safest?
Ans. There are many exchange platforms available to exchange cryptocurrencies. However, if you are a beginner, Coinbase is the best platform with a simple interface and various features.
Q. Is crypto safer in a wallet or exchange?
Ans. Physical wallets are safer than an exchange platform. They don’t necessarily need the Internet and can be accessed anywhere offline.
Final Thoughts
Crypto exchanges offer the easiest way to buy and sell cryptocurrencies. So, consider these essential things before investing in the crypto exchange and choosing a cryptocurrency exchange platform for trading. We hope that you have liked this information. Still, you can tell us in the comment section if you have any doubts.
