Crypto trading was complicated at the time of its inception. Thanks to the crypto exchanges for making this entire process of trading and investing in cryptocurrencies much easier. But with so many options, identifying and choosing the right exchange creates confusion. During the initial days of cryptocurrencies, early adopters used crypto mining or swapping to get the coins/tokens. But it requires plenty of time and technical skills; otherwise, you’ll go for something easier to save time and energy. There are a few essential factors for choosing an appropriate crypto exchange.
● Safety & Security
The first and foremost thing you have to check while choosing a crypto exchange is its security. Choose a platform that is continually trying to secure its systems. A well-reputed exchange is one that hosts bug bounty programs on a regular basis, which incentivizes white-hat hackers for identifying network flaws. Best crypto exchanges also provide 2FA and other strong security measures for keeping your cryptos secure. Insurance is an additional security measure that saves the possessions of a user from hackers and cyber attackers.
● Enough Trading Capacity
There exist more than 10,000 cryptocurrencies, and not even a single crypto exchange offers the trade of all of them. So, you have to ensure that the crypto exchange you are choosing offers you the trading of your desired cryptocurrency. For example, Good crypto exchanges provide you with multiple trading and investment options. Opt for an exchange that supports the maximum number of digital currencies, and that too in a convenient way.
● Sufficient Liquidity
It is crucial to search for an exchange that has sufficient liquidity. It is the ability to effortlessly turn your fiat into crypto or vice versa. Prices in the crypto world are highly volatile. The most suitable way to get to know about an exchange’s liquidity is to monitor its 24 hours trading volume; the higher the trading volume is, the more the liquidity is. You can check the liquidity of many exchanges by using a platform that offers real-time data such as trading volume. These platforms contain an organized form of data from many crypto exchanges worldwide.
● Trading Fee
Crypto exchanges contain a set of fees. There is a different transaction fee for different exchanges, and it may be the reason for the differences between your gains & losses. These differences in the fee structures can turn the tables for you and the savior of your hard-earned money. The best crypto exchanges deduct a transaction cost of 0.2% or less. Besides this, draw an analogy of trading fees, withdrawal charges, deposit fees, and balance transfer charges before you opt for a crypto exchange. Choose an exchange with a minimal fee structure.
● Features
A good crypto exchange has instant onboarding, full-time customer support (24×7), a mobile phone app, and a wider range of payment methods. These unique features can prove to be a game-changer for you in your trading and investment experiences. While checking the mobile app of exchange also see the ratings and reviews of the users. It will provide you the essential information about the services of a platform.
● Technology
All the exchanges are not identical. High-tech exchanges are proven to be a suitable option for Artificial Intelligence driven applications. Choose an exchange aligned with the latest technology as it will offer you the best user experience.
● Rewards
Everyone wishes for free money/crypto. Therefore, as a bonus, you should choose an exchange that rewards potential crypto users. Some of these crypto exchanges pay you a referral bonus for referring your colleagues and family members, and you have an opportunity to earn up to 50% of the trading fee paid by them. Some platforms also offer rewards for learning about startups and taking quizzes. So, go for an exchange that is more rewarding for you as compared to other ones.
Conclusion
The best crypto exchange will automatically have a huge customer base, which points to investors and traders having faith or confidence in the exchange. Do not choose an exchange solely for its minimal fee; it must fulfill all the other conditions. Crypto markets are extremely fluctuating, so support your trading and investment with extensive market research and knowledge.
