Trading cryptocurrency is quite complicated if you don’t have a crypto exchange platform to do it on. With an exchange, you can find the active values of the cryptocurrencies you want.
But with so many scams and scandals in the industry, and the huge number of options, it’s difficult to pick the right platform. You can’t simply choose the first platform you find.
So, here are some major factors to take into consideration when choosing a crypto exchange.
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Available Coins and Tokens
There are well over 10,000 crypto coins and tokens to choose from online, but no crypto exchange has every one of them. That’s why it’s important to make sure the platform you choose has the ones you want.
A good place to start searching would be large and well-known crypto exchanges that offer tons of coins for both beginners and active investors. For instance, the best crypto exchange in Australia, CoinSpot has over 370 coins listed.
Security Against Cyberattacks
There have been numerous cases of security breaches and issues in many crypto exchanges over the last few years, which is why good security should be your top priority when searching for an exchange.
Holding coins on an exchange essentially means trusting them with your money. If it gets hacked and completely drained, investors would be left empty-handed. Find an exchange that shows their security practices and protection.
Purchasing Method
Some crypto exchanges solely depend on bank transfers to purchase cryptocurrencies, while others might accept PayPal, debit cards, credit cards, etc. A lot of platforms also only accept transactions in Bitcoin.
If you’re a beginner that doesn’t have any cryptocurrency at the moment, pick a trading platform that accepts fiat currency. The time it takes to make the purchase is also important, ideally, the transactions should be done instantly.
Fees Per Trade
Each crypto exchange has various fee structures and trading fees that also need to be taken into account. Trading platforms that use coins and tokens to finalize transactions typically have reduced fees. Some platforms charge transaction fees on sales rather than purchases.
So, generally, crypto exchanges typically charge a 0% to 5% fee every time you deposit, trade, or make a withdrawal, depending on the payment method or the transaction type.
Ease of Use
For new investors, using an exchange platform that has a complicated interface, or displays things like order books, charts, and other information can get confusing and difficult to use.
Depending on how familiar you are with trading, pick the platform that has the details you need to know before purchasing a coin. Some exchange platforms have different layouts like basic and advanced, allowing users to choose the one they want.
Brand Reputation
In the same way that people look at reviews online before visiting a new restaurant, knowing an exchange’s reputation is very helpful. New investors should also research a platform’s customer support service’s reputation, as a late response from customer service might cost you money.
Simply go online and search for reviews on forums or crypto exchange rating websites to get an idea of what people think about a certain platform and how their experience was using it.
