With a number of different cryptocurrency exchanges on the market, choosing the right one is not always an easy task. After all, each of them will generally have their pros and cons, and many of them share many positive attributes as well.
Unfortunately, many beginners don't get the best start with trading, all because they didn't choose the right platform. From buggy sites to expensive transaction fees; there are just too many potential issues to keep track of, especially for someone who is new to everything and doesn't know exactly what he's looking for in an exchange.
So what can you do to find the best trading platform for your needs? Here are some of the things you'll want to keep in mind as you search for the ideal crypto exchange:
The Overall User Experience
There are many factors that can influence this; from the website interface, to the amount of information you will need to provide about your identity to get started. In general, there are several things that determine the user experience and it is worth thinking about the different aspects of a platform and how they might affect you and your investments.
If you're not sure, it might be a good idea to check out some reviews of the platform. By getting a feel for the experiences of others, you can often build a more realistic view of what to expect, which will undoubtedly help you make the right decision.
Focus on Security and Privacy
Regardless of what the platform offers, it is essential that you ensure that it is properly protected. When examining the history of cryptocurrencies and different exchanges, you will find that there are too many stories of people who have lost their investments and whose data was stolen by a cyberattack that was only possible due to poor security measures.
Regardless of promises, you should never put yourself in a position where your investments are at risk of being stolen. On the bright side, many of the best sites go out of their way to keep their merchants safe, but being so popular some are still a prime target for hackers, so you should always be careful.
Expect Full Transparency
In any situation, when it comes to your investments, you need to find an exchange that is 100% transparent. With so many platforms that are not trustworthy, it is essential that you find an exchange that is undoubtedly trustworthy. How do you do this?
Well, there are several ways that a platform like this can be transparent with its users; For example, be open about who the owner is, where they are located, the team members, and any other information you need to know. Being doubtful about rates and not being completely honest is generally a bad sign.
Trading Options Available
When trading cryptocurrencies, it is essential that you have the ability to invest in the correct assets. However, not all exchanges will offer the ability to exchange coins. In fact, most will only have a small selection for their users to choose from.
While this may not always be a disadvantage, especially for those who are only really interested in stablecoins (such as Bitcoin, Ether, Ripple, etc.), it is always worth considering the options that will be presented to you. Fortunately, most good exchanges will offer the option to trade in popular currencies, so it doesn't have to be a huge inconvenience.
Other Factors to Consider
- The web address of any encryption exchange must begin with HTTPS. If it's about anything else, even HTTP, it may not be the best option.
- There are some exchanges that insure their users' funds, which might be worth considering if you are concerned about losing your investments in a cyberattack.
- The higher the liquidity (trading volume), the better. This can often contribute to benefits such as faster transactions and less severe price fluctuations.
- Since most big-name exchanges charge fees for their services, it may be worth taking the time to consider the costs that come with the different platforms.
- To get the best possible experience, it is generally worth going to a tried and tested website. If you know that many other investors use it, this is usually a good sign.