5 Things to Consider When Choosing Crypto Exchange

Crypto is not going off the radar. The community of crypto enthusiasts is growing day by day. In times when crypto investments are gradually shifting from the privilege of a small group towards an opportunity for all, it is highly important to learn how to choose and where to trade. The ever-growing cryptocurrency market has a significant demand for high-quality and trusted exchanges. Bitcoin becomes the most popular and everyone wants to buy some. But how to find an exchange you can trust, where there are hundreds of them in the market. What are the factors that make a trusted exchange?

Searching for the right exchanges isn’t easy, but it can be a great learning experience. In this article, you will learn the most important 5 factors that you need to consider before registering on a crypto exchange. Each of the categories helps you to identify which crypto exchange to choose and which to avoid.

5 Things To Consider When Choosing A Crypto Exchange 

1. Security

Security must be a top priority of every exchange. Rule number one is to choose a secure and legitimate platform. Crypto investments are not the same as trading on traditional stock exchanges. The best security in the world has the latest security standards, an employee trained for breach and intrusion incidents. Undergoes regular penetration and educate their user for cyber hygiene.

As the crypto exchange is the favorite place of the hackers because of the large volume amount stored. It’s beneficial to choose a crypto exchange with a money recovery plan and insurance plan.

The Threats aren’t just external it’s internal as well, the ideal exchange is transparent to its users from all points of view. A clear understanding of all the terms and conditions, transparency operations, and future roadmaps. The whitepaper must be added to get a clear understanding of the funds. So for security purpose, you should choose a crypto exchange that has multi-factor authentication and that processes your data according to data protection laws and doesn’t share them or resell to third parties.

2. Volume of Trade

The trading volume of any crypto exchange is another key feature to consider before signing up.

The higher the volume, the more trustworthy the platform is. Actually, trading volume indicates how many people buy and sell cryptocurrency using the particular exchange.

3. Cost and Profitability

Investors should only invest in those crypto exchanges that are honest and transparent about their cost structure and have generous return schemes, and profitable products.

As the cryptocurrency market grows, investing in crypto is not just about trading and holding.

Different services allow you to leverage your holdings and increase your profits with a range of products with different risk/ reward ratios. Your selected exchange should provide you with profitable products and attractive earning potentials such as savings, loans, futures, and margin trading.

4. Simplicity and Reliability

You may not always be trading from a desktop computer or laptop, so look for an exchange that has an easy-to-use platform on both desktop and mobile devices preferable.

The crypto exchange must be reliable and can handle past periods of volatility without any major outage. They should sustain increased user activity and provides liquid markets that allow you to quickly execute trades.

5. Customer Service

The crypto market is open 24/7,365 days a year non-stop. You are going to need some form of support. Check the customer satisfaction and customer support reviews for the exchange to see if you can count on their team if you experience some issues. Look for the exchange that has 24/7 customer support with a high response speed and resolution rate.

Conclusion 

It’s not an easy task to find an exchange that meets all the criteria and there are only a few that tick off all the requirements mentioned above. But it is worth the time to search before you trust someone with your money. In the upcoming months, there will be more and more new comers joining the market so do not hesitate to share this article with your friends and family.