Numerous crypto exchanges appear every month. Newcomers are confused about what exchange for cryptocurrency to choose out of a wide variety of options and what to look out for. Learn how to choose the best cryptocurrency exchange with us!
Crypto is still a new industry so be aware of possible scams and hacks. It’s important to do research about exchanges you are planning to use. Search them alongside the term “scam” and evaluate the results. Searching the exchange on various forms of social media can also be useful, looking to see if any complaints have been posted.
Looking into each platform’s terms and conditions can also be helpful, noting anything that is alarming or out of place.
2. User Interface & Ease-of-Use
Most users do not need complicated features to buy and sell crypto, they are more interested in a user-friendly interface and safe crypto operations. These are signs you want to see in an exchange if simplicity is your priority too:
- The interface is easily understandable
- Offers a legit display of your funds and the current exchange rate
- Provides a free personal wallet (by the way, you can use other solutions to store your funds. For example, Cryptomus)
- Offers educational info on the basics of crypto
- Has a convenient desktop/mobile app
- Do not have every unnecessary advanced feature
It’s no secret that cryptocurrency exchanges are vulnerable to hackers, therefore platform security is the most important because if an exchange is not secure enough you could lose all your funds. To keep your funds protected, look for exchanges, that provide users with:
- 2-factor verification for crypto payment gateway
- Customer funds stored offline
- A site that is protected with HTTPS
- A KYC (know your customer) policy
- Sophisticated multi-layered security
- If you want to store a large amount of cryptocurrency on an exchange, we recommend considering using a cold wallet for added security.
4. Fees & Charges (Especially the Hidden Ones!)
Transaction fees and fee structures differ across various services. Find out how much it will cost you to buy and sell cryptocurrencies on your preferred exchange as there is no such thing as a free lunch when it comes to cryptocurrency exchanges. These solutions frequently take commissions for each deposit, trade, or withdrawal. Depending on your payment method and the kind of transaction, fees usually range from 0% to 5% per transaction. Fees are usually calculated based on your total trading volume during a 30-day trading period, with the percentage you pay lowering as the number of trades increases.
Be alert – some exchanges may say that they charge no fees although they will charge you hidden fees.
5. Coin Selection
As bitcoin has grown in popularity, there are currently up to 10,000 different currencies to choose from. Nowadays there are also improved versions of bitcoin – altcoins – present.
If you want access to more than just the most popular coins, when choosing a сryptocurrency exchange, you should pay attention to those with a wider selection of coins because some exchanges only have a certain amount of coins accessible.
6. Local or International Exchange
It’s better to use the exchange for cryptocurrency from the country you are in if you don’t want problems with:
- The law
- Doing taxes in cryptocurrency
- Customer support service
- Buying crypto directly
If you do want to use exchanges from other countries anyway, this is possible, just be vigilant about the drawbacks they can have.
7. Customer Support
Users oftentimes turn a blind eye to it, while transparency is very important. The support team may be important the most if you are new to crypto, so look out for the exchange that:
- Offers responsive customer support, preferably based in your country
- Want to educate newcomers on crypto market
- Does not withhold information about its owners, company location, and the team members
- Has active team members who are personally involved with local crypto events
- Has transparent information about fees they charge
Good exchanges will have adequate insurance coverage in case something goes wrong – many exchanges now provide corporate crime insurance, which covers things like theft, robbery, property damage, and cyber fraud. However, insurance policies range significantly amongst exchanges, so always check what each exchange covers. This information may be found in the user agreement you receive when you sign up, as well as in the FAQ sections of exchange websites on a regular basis.
Hope we helped you to understand how to choose a cryptocurrency exchange to keep your funds protected.