Taking the first step into the crypto world? Well, good luck!
But, before you dive into the world, you need to choose the right crypto exchange from where you can buy and sell .
A exchange is just like a stock exchange except there are no brokers to transact on your behalf. You can directly trade on the platform of your choice.
With a number of exchanges available in the market, selecting the right exchange can be a daunting task. However, looking at the important factors can simplify the task for you.
Consider these factors before you choose a exchange.
· Beginner Or Advanced
Before you choose a exchange, ask yourself if you are a beginner or an advanced user. Many exchanges are quite simple to use whereas some are very complicated.
So, if you are a beginner, you’ll want an exchange that is simple to use such as , Shapeshift, etc.
But, if you’re an advanced user, you might want to look for more advanced features such as customizable charts, margin , and options. Before you choose the one exchange that suits your needs, read about all the available out there.
· Security
worth from exchanges. Exchanges are easy and big targets for hackers as they hold a large number of funds. Although centralized exchanges support increased liquidity, they are a big target for phishing scams and hacks.
So, look for an exchange that offers features like cold storage, 2FA, and encrypted email options. The exchange should have 90% of its funds in cold storage. Also, it’d be a plus point if your exchange has insurance coverage.
· Liquidity
Liquidity is when there’s an adequate number of sellers and buyers of a particular that makes it eligible for . You will want to have an exchange with high liquidity as it’ll make it easy for you to buy and sell digital currencies within the platform. It will lead to hassle-free transactions and competitive pricing.
· Exchange Pairs And Currency Option
You need to see the number of pair available on each exchange. If you are a beginner, a small handful of pairs is sufficient, for example — . But, if you’re an advanced user, you might want to trade between various . So, look for an exchange that supports the you want to buy.
Exchanges can also be divided by which currencies they accept. For example, many exchanges don’t accept US dollars. And, some exchanges only accept .
· Fees
Before trusting an exchange, make sure you understand their fee structure. You should compare all the fees an exchange charges. Usually, the fees are less than 1% per transaction. Also, check the withdrawal fees and deposit fees as well.
Furthermore, many exchanges should’ve the fee information on the website, but it may differ substantially from exchange to exchange.
No doubt, choosing a exchange is your personal decision but don’t make the same mistakes as others. Put transparency, security, and reputation at the heart of your search to choose the right exchange for you. After you choose the exchange for you, learn about .
Published at Thu, 04 Apr 2019 08:18:11 +0000
