The price of the significant cryptocurrencies may have dropped slightly, but the crypto mania is still here to stay. Whether it’s financial institutions or enterprising Millenials, the scramble for digital money still goes on; if you’re going to cash in on the craze, you’re going to have to choose a cryptocurrency exchange.
Cryptocurrency exchange platforms play a crucial role by enabling users to buy or sell digital assets. They also act as entry points for all the common fiat currencies for anyone who wants to buy crypto, besides acting as an exit point for anyone planning to sell their cryptocurrency holdings.
As cryptocurrency adoption goes into the mainstream, you could find yourself asking what cryptocurrency exchange you should use to buy or sell digital assets. The following features are among the most important ones to consider when choosing a cryptocurrency exchange:
1. Security and Authenticity
Take the time to do your research to ensure that you select a secure and legitimate cryptocurrency exchange platform. The short history of cryptocurrencies is replete with examples of exchanges gone wild, with hacking incidents like Mt. Gox and, most recently, Coincheck standing out like sore thumbs.
It is imperative to research and guarantee you choose a legitimate and secure platform. The early example of Mt. Gox and the most recent hacking of Coincheck serve as serious warnings to prospective cryptocurrency investors to look into the exchange’s security protocol.
Hundreds of fraudsters enter the crypto sphere intending to steal your hard-earned cash. Be wary, especially of platforms that practice pump-and-dump schemes, which genuine exchanges can easily prevent. Cryptocurrency exchanges can keep watch on new tokens used to propagate pump-and-dump schemes.
2. Accepted Currencies and Purchasing Methods
Cryptocurrencies aren’t yet accepted in all countries, meaning that sending money to your preferred cryptocurrency exchange could create some issues. Different crypto exchange platforms accept various forms of payment. These include bank transfers, debit and credit cards, PayPal, with others accepting cryptocurrencies.
You want to make sure that you select an exchange that accepts the fiat currency you have, especially if you don’t have any cryptocurrency. Please find out how long buying digital assets takes and how long it takes to finish the process. There are platforms where the procedure is instant, while others could take several days or weeks.
3. The Fee Structure
Cryptocurrency exchanges don’t offer services for free. The fees they charge for different services are a good part of the platforms. Check whether your selected exchange charges a percentage of the amount traded or a flat-out amount for varying levels of users. Whether you’re depositing or chasing out, borrowing or lending, making wallet transfers or trading futures, read carefully and make comparisons between different exchanges.
4. Supported Cryptocurrencies
Bitcoin and Ethereum may be the most popular cryptocurrencies, but they’re just the tip of the iceberg. There are tens of other major cryptocurrencies and a long list of altcoins that you could choose from. You may want to select from a list of stablecoins that most traders use as a hedge against volatility due to their stability. No matter what you choose, always choose a cryptocurrency exchange that supports the digital assets you want to purchase. Consider factors like market cap, 24-hour volume, and the exchange rate when making that final choice.
5. The number of services offered
There’s more to cryptocurrency trading than simply buying and selling tokens. Select a platform that offers many more services such as derivatives, such as shorting, NFT art sales, leverages, and lending.
6. Mobile App Perks and Features
During these days of mobile telephony, you want to make sure that you can conduct business on the go whenever possible. Most modern cryptocurrency exchanges have mobile Apps. Don’t limit yourself with an exchange that demands you stay glued to the big screen; choose an exchange with an App with dynamic features suited to your lifestyle.
7. User Support
All activities on a platform may be automated, and there may also be hundreds of tutorials. However, there are times when you could have your doubts or questions. Choose a cryptocurrency exchange that makes it easy for you to communicate with support staff via phone, live chat, or email. This will ensure that your questions are answered, and you have someone you can contact 24/7 whenever you’re in need.
Since all cryptocurrency exchanges are different, you want to make sure that you balance the most important considerations when choosing a cryptocurrency exchange platform. Most importantly, try and become knowledgeable about all available options before making a final decision. Also, don’t be afraid to sign up on more than one exchange for different reasons.
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.