Investing in digital currencies has become increasingly popular in the past few years, as they allow you to build your wealth in a straightforward way. If you’ve decided to get started with cryptos, it’s essential first to consider how you will store your assets. One way to do so is using a crypto exchange, such as Binance, which is similar to a brokerage account that enables you to buy and sell digital assets like Bitcoin. These platforms make trading seamless for users, and they are accessible both on a web browser or a smartphone. However, it’s essential to take the time to choose the crypto exchange that best suits your needs, and in order to do so, there are several factors you need to keep in mind.
Ease of use
When looking for an exchange, consider how familiar you are with trading. If you’ve just got into crypto and blockchain, using an exchange with a complex interface and many charts can feel intimidating.
In such a case, opting for a newbie-friendly exchange may be best. For instance, some platforms provide both basic and advanced views, meaning that you can select the preferred layout. On the other hand, some exchanges have a design created specifically for beginner investors, helping avoid confusion.
Security
Security should be a top priority when looking for a crypto exchange to store your funds. After all, holding coins on such a platform means you rely on someone else to keep your crypto safe. If cybercriminals target the exchange, you could lose your precious assets, which you want to avoid.
Hence, you should take the time to look at the security features on the exchange’s website. While there are no guarantees that a platform is 100% safe, the following aspects can indicate its reliability:
- Cold storage, meaning that the funds are stored offline, and thus, they can’t be accessed by bad actors;
- Multi-signature wallet, which can be accessed through different verification forms or signatures.
Trading Fees
Fees are another critical aspect to consider when choosing a platform for buying and selling crypto. They can be based on different factors, like the size of the transaction or the level of your activity, and so on. If your goal is to make transactions on a daily basis, it may be a good idea to opt for a crypto exchange that offers low transaction fees.
We recommend taking the time to compare the fees on different platforms so you can make an informed decision. The last thing you want is to end up paying an exorbitant price for the fees, so make sure to research the liquidity levels of the exchange.
Liquidity
Liquidity is required so you can make trades whenever you want. For this to be possible, the exchange should provide a significant volume of orders. In other words, the exchange should either have many users or users should hold a substantial amount of assets to trade frequently. If the amount of trades is small, trading partners may not be available.
Liquidity is also crucial to withstand times of high volatility, which is a common occurrence in the crypto market. Less liquidity can intensify volatility, leading to dramatic rises and falls in digital assets’ prices.
Supported assets
Thousands of cryptos are currently in circulation, and it’s pretty much impossible for an exchange to provide them all for trading. However, on most platforms, you’ll find popular options like Ethereum, Bitcoin and BNB.
As a general rule, coins with a higher market cap can be traded on reputable exchanges, so if you’re looking for lesser-traded coins, you may have to look for smaller trading platforms. This may take some time, so having a wishlist handy may be useful.
Reputation
When looking for a restaurant to eat out at on the weekend, you likely check reviews to help you make a decision. Well, you can apply the same rule when selecting a crypto trading platform! Before committing to a specific exchange, it’s worth looking into its background and figuring out if it is known for having a good reputation.
Besides reading reviews, you can also reach out to individuals in your network and investors with experience using the exchange. These people can provide valuable insight, helping you make the best decision. Reputation is crucial in choosing a suitable crypto exchange, so you shouldn’t overlook its importance.
Customer support
If you’re new to the crypto space, naturally, you’ll have different questions on the basics of digital assets and how the trading platform works. And you will likely run into problems sooner or later, which is why you should select an exchange with reliable customer support.
Sometimes, you may require urgent customer support – after all, your money is at stake, and given the rapid movements in the crypto market, you should be able to get a response as quickly as possible. Otherwise, you could suffer significant financial consequences if you have to wait days for it. Therefore, customer support service is a crucial aspect to consider when looking for the best exchange. Ensure that they respond promptly and that customers generally have a positive experience with them.
User experience
If you plan to use the crypto trading platform for a while, you should ensure it offers an enjoyable experience. Consider whether the exchange has an intuitive interface that provides a modern feel.
If you easily get lost in the menus and settings, and there’s too much confusing jargon that’s difficult to understand, your experience won’t likely be very pleasant. Remember, the crypto space is already filled with volatility, so you should make your journey smoother by picking an exchange which you can easily understand and use.
Transparency
A crypto exchange should also provide transparency to users, meaning that it should be upfront regarding its fee structure, security, jurisdictions, and how long it takes for a transaction to be completed.
Suppose an exchange is evasive regarding these aspects; this can be a red flag that indicates a lack of transparency. Given that bad actors target the crypto space, investors should prioritize transparency when looking into the features of a crypto exchange.
The bottom line
Choosing the right crypto trading platform requires some due diligence, but it’s indeed worth your time and effort because it will make a difference in your crypto journey. Hence, consider the features we mentioned above to buy and sell your digital assets effortlessly.
