As a crypto trader, choosing a crypto exchange platform is one of the first and most important decisions one will make and like in any other investment, making decisions needs one to be cautious and well-informed.
The days of just acquiring bitcoins through mining or trading through online and offline forums are long gone. Today, crypto trading has grown more accessible and appealing to both early crypto users and beginner traders who are accumulating riches.
Crypto Exchanges, for example, play an important role in this. They make trading and investing in digital assets quick and straightforward by making many features and rewards available in just a few clicks as platforms that assist buying, selling, and exchanging digital currencies.
Choosing a crypto exchange platform is one of the first and most crucial decisions a crypto trader will make, and making decisions, like any other investment, requires caution and knowledge.
To assist prospective crypto users like you in making the best initial step into trading, we’ve developed a list of the most critical considerations each crypto enthusiast should consider before selecting an exchange.
The first and most crucial element to consider when selecting a cryptocurrency exchange is security. Platform security is critical in crypto trading because your finances are entirely dependent on it.
What are the warning signs?
- Strong encryption and best security standards, such as two-factor authentication, are used by good crypto exchanges, adding a layer of security to traders’ accounts. This can mean the difference between having a safe wallet and being hacked.
- A good reputation for keeping servers secure from both internal and external threats. The platform should be developed in such a way that it eliminates transaction risk and implements security mechanisms to secure users’ digital assets.
It is also critical to investigate how an exchange complies with and adheres to relevant regulatory regulations and guidelines established to protect any crypto trader.
- It is also critical to investigate how an exchange complies with and adheres to relevant regulatory regulations and guidelines established to protect any crypto trader.
The Philippine Digital Asset Exchange (PDAX), for example, is a licensed and controlled exchange by the Bangko Sentral ng Pilipinas (BSP). This implies it is more accountable to regulators and transparent. It also provides customers with the certainty that they have somewhere to turn if they have any queries or issues.
2. Cryptocurrencies available
The quantity of currencies available for trading varies between crypto exchanges, with some platforms offering more tradeable coins than others. A trader must first determine which currencies they wish to trade and then determine whether these coins are available on the crypto exchange platform under consideration.
Expert traders recommend that an average exchange offer at least eight to ten coins. More cryptocurrency exchanges can assist an investor diversify his portfolio and decrease risk if the value of his cryptocurrency falls.
Of course, every cryptocurrency trader wants to keep as much of their winnings as possible. Crypto exchanges, on the other hand, do not operate for free, and all charge consumers a percentage every time they deposit, trade, or withdraw.
When selecting a crypto exchange, you should examine the fees that different platforms charge and, if possible, choose the one with the lowest fees to guarantee that fees do not eat into your profits.
Before plunging into the world of cryptocurrency, you should be aware of how volatile these currencies are and how quickly their prices may change. That being stated, while selecting a crypto exchange, look for one with high liquidity.
Simply defined, liquidity dictates how easy it is to convert cash to cryptocurrency or vice versa without hurting its value. A liquid exchange can also make it easier to enter and exit trades in a fast-paced digital currency market by simplifying the process of buying and selling cryptocurrencies.
- Customer satisfaction and ease of usage
Of course, when selecting a crypto exchange platform, you should consider your user experience.
Crypto trading can be confusing and overwhelming, especially for newcomers, but a solid and reliable crypto exchange can mitigate this through the ease of use of its platform.
Here are some of the benefits of using a good cryptocurrency exchange platform:
- Experience without lag. Given the fast-paced nature of the crypto market, a seamless and quick trading experience is essential for all traders, whether on mobile or desktop.
- A pleasant user interface. Trading might take hours, so a clear and straightforward platform interface is required.
- Customer service that is dependable. An ideal crypto exchange should have a specialized team to which users may turn for help and advice on their cryptocurrency concerns.
- Learning. A cryptocurrency exchange should assist traders in staying ahead of the curve by providing how-to guides, overviews, training, and insights into the cryptocurrency market.
As a trader, you should consider your cryptocurrency exchange an investing partner, and it should treat you similarly by providing you with a pleasant and hassle-free client experience.