As a beginner, it can be slightly challenging to make the right choice on which cryptocurrency exchange platform you should opt for, especially when considering the fact that there are many to choose from. By understanding your basic needs, you can use these points to influence your decision as you want to work with a platform that will provide you with everything you need to make your trading, buying, and selling experience smooth and effective.
With predictions today, you’re able to get the best information you need to make informed decisions on your next bet. Therefore, we’ve decided to do the same by offering you the perfect beginner’s guide on guidelines you can use to find the best cryptocurrency exchange because the last thing you want to do is waste large amounts of money on expensive platforms that could offer you a buggy, incompetent, and difficult time.
Understanding Cryptocurrency Exchanges
The whole purpose of a cryptocurrency exchange is to provide you with a platform that will allow you to buy, sell, and trade cryptocurrencies. When you aren’t registered with one, you won’t have access to these digital asset functions. There are other alternatives that you can use to buy and sell cryptocurrencies, however, the primary way of doing so is through a cryptocurrency exchange.
What To Consider
Before jumping into points you should take into consideration, it’s worth noting that your mileage may differ when it comes to choosing an exchange. Additional features like over-the-counter deals and margin trading, trading pairs, and supporting specific altcoins could all be factors that may have your mileage different from the next trader. Therefore, don’t always be too quick to choose a platform based on what another trader is already opting for.
When it comes to financial and personal information, security is always of utmost importance. The moment you choose an exchange that is not secure, you could risk having your funds stolen. Basics would include:
- Ensuring that the site starts with HTTPS and not HTTP connections
- Allowing customers to use two-factor authentication
- Offering customers the option to store their deposits whenever they are offline
- Implementing auditing programs to help monitor all activity that’s taking place on the platform
- Being able to whitelist withdrawal wallet addresses or IP addresses
Try opting for exchanges that are from the same country you’re in so it’s easier to comply with regulations. You do have the option to use exchanges that are in other countries as well, however, just be sure to check which countries the platform supports.
One of the advantages that come with choosing a platform that’s well regulated includes being offered insurance over your funds so that in case you lose your funds, you’re able to be reimbursed for your loss. But not all platforms offer this.
Exchanges that reveal their owners, members, and headquarters addresses are usually the safest bet. To further the act of transparency, some exchanges go as far as publishing their cold storage addresses.
You can get a rough idea of how liquid an exchange is simply by assessing how high its trading volumes are. With enough liquidity, transactions can be completed faster and easier without the need to worry about price volatility. Also, check to see if the exchange provides a “locked-in” price feature that will work to guarantee you your transaction’s value even if the settlement doesn’t take place immediately.
Make an effort to compare all the fees that are applicable to an exchange, especially when it comes to withdrawal fees and deposit fees. Usually, they should charge less than 1% for every completed transaction and this should decrease once there’s an increase in your trading volume.
When we look into discussing your user experience, we’re referring to talking about basics like anonymity, the user interface, and the pros and cons to be aware of that could affect your overall experience.
For traders who treasure their privacy, they may not be too comfortable with platforms that would require them to reveal their personal details. Therefore, anonymity is an important part of their user experience. And then when we talk about having a user-friendly interface, we’re referring to having a simple and straightforward experience whether you’re using a mobile device, PC, or laptop.