Are you looking for the best cryptocurrency exchange? Are you wondering how to choose the right one?
The market in 2018 lost 1 billion USD to scammers. This led to colossal bitcoin price drops in that particular year. Later, several crypto trading platforms emerged with utmost safety and security features.
Did you know the digital currency market boasts over 200 exchanges with a trading volume of billions for just 24 hours? Since there are several crypto exchanges, choosing the right one is overwhelming and time-consuming.
However, here’s a detailed list of factors to consider before choosing the exchange. After reading this article, you’ll understand how to select the right crypto trading platform. Moreover, if you’re interested in 3D printing and more, check out the website cults3d.com. So, let’s dive in.
How to Choose the Best Crypto Exchange?
The anonymity days are gone in the digital currency world. The exchange platforms focus more on the KYC(Know-Your-Customer) and AML(Anti-Money Laundering) procedures to avoid scams and fraudulent activities.
Make sure you transfer the crypto to the hardware wallets once you’ve got the cryptos worth one month of your salary. This is one of the best tactics to protect money from hackers and scammers.
Where to get started?
If you’ve just entered the crypto world, you might be looking to buy cryptos using USD, GBP, EUR, CAD, INR, or your local currency. Using a credit or debit card is an ideal choice from Coinbase.com or Kraken.
These are the best platforms to start with, and gradually you can invest or trade on popular cryptos such as BTC, ETH, BCH, etc. These platforms are great for merely popular cryptos. However, you can gradually start purchasing bitcoins once you understand the concept of cryptos.
Now, it’s time to uncover a few other factors before choosing the best crypto exchange.
Location
The geographical location plays a vital role while choosing the right exchange platform. Each location might have distinct rules and regulations. Most of the cryptos are restricted to only a few geographical locations. So, first of all, ensure trading cryptos in your locality is legal.
After that, understand the rules and regulations to use the exchanges. There are few countries where crypto trading is illegal. Even though it’s legal in a country, a few states still restrict the trading of decentralized currencies. This is why checking out the location is one of the foremost steps before choosing the trading exchange.
KYC
Most popular and reliable exchanges leverage KYC verification to prevent hacks or scams. The anonymity is highly prone to fraudulent activities. This is why the digital crypto industry lost millions in the earlier days.
However, that’s not the case now due to the KYC verification. The KYC verification needs your photo and other related documentation for identity confirmation. A few trust-worthy crypto trading platforms also enable low-level transactions without KYC or revealing personal details.
Reputation
Reputation is another crucial factor to consider. Although cryptos have been buzzing worldwide for over a decade, they’re still considered the new industry. So, when entering something new, it’s always advised to check out the reputation or brand value.
Since several exchanges are indulged in scams, hacks, and other fraudulent activities, choosing a non-branded trading exchange isn’t a wise choice. Research various platforms and analyze their history, track record, and results. Also, check whether the exchange is socially active. Finally, choose the best platform that’s well-renowned and ensures excellent services.
Available Digital Assets & Transaction Fees
Before choosing the exchange, check what digital assets it offers along with its transaction fees. There are over 1300 cryptocurrencies in the market. And not all exchanges hold the same number of cryptos. Do your homework and choose the exchange with a few best cryptos to trade. Also, keep an eye on the transaction fees as each exchange offers distinct fees.
User Experience
User experience is one of the on-demand factors, especially for beginners. Since the newbies cannot handle complex features, the exchange interface should be simple, easy to understand and operate. Make sure you use free trials before joining the exchange.
For instance, crypto exchanges like Coinbase, Square, Binance, Gemini, BlockFi, etc., are suitable for beginners. On the other hand, platforms such as Bitstamp, FTX, Coinbase Pro, Kraken, and Bitfinex are best for advanced users with years of experience in crypto trading.
Security
There is a huge requirement for security when it comes to crypto exchanges. You buy, hold, and sell the cryptos via the exchange. It’s just like storing your money with a trustworthy person capable of protecting it. If a hacker hacks the exchange, you’re left with empty hands. This is the reason one should exchange with high-end security levels.
Consider the exchanges offering certain features like cold storage and multi-signature wallet. Cold storage is a crypto wallet where the money is stored offline, preventing access to hackers. At the same time, the multi-signature wallet asks for several details before accessing the wallet. So, make sure the exchange you choose provides enough security features.
Customer Support
Here’s the last yet most important factor to consider- Customer support. Whether you’re a beginner or a professional crypto trader, one may encounter problems while using particular exchanges. At times, quick customer care support is required to encounter bugs and other issues. So, a strong customer support team must fix the issues immediately. Or else it might affect the trading results. Choose the platform that ensures quick customer support in emergency cases.
Key Takeaways
There are several cryptos in the market, and choosing the best one is tricky. One should consider several factors to choose the best exchange platform. These include the following.
● Geographical rules and regulations
● KYC verification
● Reputation or brand value
● Available digital assets
● User experience
● Security
● Customer support
● Transaction fees
These few factors play a vital role in choosing the most suitable platform. Apart from the above factors, you can also check on a few other factors such as transaction limit, Interest, rewards, mobile apps, wallet security, and trading options.
