Introduction
The crypto craze is here with us, and this attracted the interest of major financial institutions and enterprising investors looking to invest in this lucrative industry. Although, you need to boost your chances of making a profitable return and avoid frustrations and distractions along the way. Hence, you need to work with a reliable crypto exchange platform. Otherwise, you shouldn’t expect to make a large sum of money from trading cryptocurrencies.
The first step to succeeding in the crypto market is to choose an excellent crypto exchange. Read more to help you identify a great platform and the essential elements to consider.
What’s A Cryptocurrency Exchange?
The crypto exchange is a platform through which you can trade cryptocurrencies such as Litecoin, Bitcoin, and Ethereum to name a few. You could acquire these acquisitions through the standard currency, such as the Euro or U.S. Dollar. The price shown on the exchange usually reflects the cryptocurrency’s current market value.
Cryptocurrency exchanges are essential because it offers crypto investors a platform to buy and sell these digital currencies. This is important considering many conventional investment companies don’t have cryptocurrencies as one of the available portfolios. And if you’re searching for an exchange from which to trade cryptocurrencies, go right here to get started.
What Should You Look For In A Great Crypto Exchange Platform?
There’s no perfect crypto exchange, and an ideal choice usually depends on whether it satisfies your specific goals and interests. With that said, several elements can help you determine which particular crypto exchange platform is an ideal pick, and this includes:
1. User Interface And Ease Of Use
If you’re new to the world of cryptocurrency, you want to avoid complicated functionalities and user interfaces. Otherwise, you’ll quickly become demotivated from investing in these digital assets. Hence, choosing a crypto exchange platform with a superb user interface should be your primary priority. While the ideal user interface differs from one person to another, there are a couple of things to look for in a crypto exchange, such as;
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- It comes with an easy-to-use smartphone or desktop app.
- It incorporates features such as price notifications and recurring buy or dollar-cost averaging.
- You get a free personal wallet held on the crypto exchange immediately after creating an account.
- The platform utilizes a simple design that prioritizes a user-friendly experience.
- Availability of educational guides to teach you cryptocurrency basics.
- A friendly customer service team readily helps you when experiencing an issue.
You should opt for a crypto exchange with these features because of its ease so that trading cryptocurrency becomes a lot more exciting.
2. Asset Selection
The broad array of cryptocurrencies being traded on a particular exchange is another thing you need to consider before choosing your preferred pick. This is essential because you can choose to buy numerous other cryptocurrencies aside from Ethereum and Bitcoin. If you want the chance to trade these less popular coins, make sure to choose an exchange that supports the many unknown coins.
3. Security And Authenticity
Another vital element you should check before choosing a crypto exchange is to examine the implemented security protocols. You should do this because you don’t want to lose your hard-earned money through hacking due to inferior security protocols. Doing this is especially necessary because the rates of cybercrimes have recently skyrocketed.
With this in mind, make sure to choose a crypto exchange that incorporates different security features such as:
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- Utilizes complex multi-layered security system that’s frequently updated.
- Implements two-factor verification, more so for withdrawals.
- The platform uses cold storage, an offline crypto wallet that’s offline and beyond the reach of hackers.
With such security features, the chances of losing your crypto assets on a particular exchange are considerably lower.
4. Method Of Purchase
The method of buying cryptocurrency differs from one exchange to another, so you need to find a platform that best matches your needs. Some of the available options you can use to buy cryptocurrency include PayPal, debit and credit cards, as well as bank transfer. However, other exchanges only accept payments made using cryptocurrencies. An exchange that only accepts crypto payments isn’t ideal if you’ve just started investing in cryptocurrencies.
Besides finding out whether the purchase method is accepted, you also need to determine the duration it takes for the crypto exchange to complete purchases. This transaction period varies between platforms with some exchanges, with some only taking a couple of days or weeks while others do this almost instantaneously.
5. Fee Structure
For every trade made on the crypto exchange, you’ll be expected to pay a small transaction fee that differs from one platform to another. The fees paid are usually calculated as a percentage of every trade you make. With that said, some exchanges allow you to make free purchases and only charge you for every successful sale. In addition, these fees can vary depending on the number of tokens you hold at any given time.
Therefore, it’s essential to consider the fees charged by an exchange platform if you often buy and sell cryptocurrencies. This is because what might initially appear as an insignificant amount can sum up to a hefty total after numerous dealings.
6. Company Reputation
Every crypto exchange will advertise itself to have your best interest at heart, but this isn’t always the case. Because of this, you need to take time and do exhaustive research on a specific exchange platform before you do any financial dealing with them. This is crucial considering the cryptocurrency market is relatively new, and several exchanges have been involved in scams, hacks, or disreputable dealings. Therefore, it’s best to be cautious and research an exchange you’re considering to use to avoid regrets afterward.
A good way to determine a crypto exchange’s credibility is by reading comments on reliable forums or other social media platforms from previous clients. Doing this will give you an idea of what to expect from a specific exchange and help you make the right decision.
The Takeaway
When starting to invest in cryptocurrencies, it’s crucial to start on the right footing. Hence, choosing an excellent crypto exchange platform is necessary. Hopefully, the factors mentioned above eased your nerves by detailing the essential elements when searching for a trustworthy cryptocurrency exchange platform.
