Welp MagazineIt’s extremely important that before you invest in a certain cryptocurrency, you need to know which is the optimal platform for buying and selling them – or in other words, to find the best crypto exchange. The reason behind this is that not all platforms are equally safe, nor do they offer the same benefits to using them, and only the best-regulated ones will give you what you need in order to trade cryptocurrencies without any problems or difficulties. There are a few things that you need to consider in order to find the ideal platform that suits your trading style and risk tolerance.
1. Online Reviews
Much like with anything else, it’s always a good idea to take a look at what other people have said about the platform you are interested in, or that you may end up choosing. You can check online reviews on specialized websites that offer information about the best crypto platforms, comparing them and pointing out the benefits and the flaws of each one, or look for information about how other people have experienced each platform – both good and bad things – while also looking at their strengths and weaknesses. Such sites will also provide you with a lot of additional information related to cryptocurrency trading, as well as a certain amount of tutorials and guides. This is always a good option whether you’re completely new to crypto, just want to try out a different trading strategy, or are looking to invest in a new altcoin.
2. Types Of Exchanges
There are two levels to consider when talking about the types of exchanges. One is related to which coins are supported on a certain platform. Most will support the more popular coins like Bitcoin, Ethereum, Litecoin, and Tether, but if you want to trade more obscure coins or tokens it’s important that the exchange you decide on has them, otherwise, there’s no point. The other is related to which types of exchanges are enabled on a platform – fiat, crypto-only, or a hybrid option that allows for both. Fiat-only exchanges trade solely in cryptocurrencies that have fiat currencies. In other words, they trade all their cryptocurrencies for fiat currencies, like USD or Euros. These platforms aren’t that great if you’re looking to get into the more obscure altcoins, but are ideal if you need to cash out your money or want to speculate on prices. There are also crypto-only exchanges that allow users to buy and sell cryptos without exchanging them for fiat currencies. These are much better if you want to get your hands on different altcoins, and only use the exchanges in order to trade between them, but they lack many of the benefits that fiat-only platforms offer such as being able to easily cash out your money whenever you need to. Finally, some exchanges allow for both, which has obvious benefits when the platform is well regulated.
3. Security
This is extremely important when you’re looking to invest in cryptocurrencies – there’s no point in putting your money into something that you don’t feel safe with. That’s why it’s vital that an exchange has its security tested by experts, and that they are possibly even regulated by the government. This will guarantee both the safety of your investment, as well as the secure way in which you’ll be able to trade the cryptocurrencies that you’ve chosen. When it comes to the on-site security features, what you want to look for is two-factor authentication, SSL encryption, and maybe even cold storage. Other things that you’ll want to consider are whether the exchange is relatively new or already has a reputation in the business for being one of the best – this can be found by checking online reviews about them on specialized forums.
4. Ease Of Use
As with anything, if you want to become a successful trader it’s essential that you choose an exchange that is easy to use and offers all the features that you need. If your platform lacks certain things, like charts or even analytics tools and graphs, then it might not be the right one for you no matter how good their security is. Make sure to pay attention to all the necessary features before you even start searching for an exchange – it’ll save you lots of time in the long run. There’s always a learning curve when dealing with new exchanges, so it’s important that you start off with a beginner-friendly platform if you only just started out in this business.
5. Support
Every problem that might arise while trading should be dealt with quickly – any delay can lead to a number of inconveniences, even the loss of money and time spent waiting for someone to take care of it. That’s why you should always choose an exchange that offers prompt customer service and cares about its users. You’ll be able to contact the support team whenever you have a question or an issue, and they should reply within a reasonable time frame. If it takes them days or even longer to do so, then their customer care might not be up to par with other options on the market.
6. Fees
This is always something that traders are wary about when choosing their platform, and with good reason. It’s never a benefit if they charge too high fees, so it’s best to look for low fees that won’t eat into your profits or take too much value out of each transaction. If you’re looking to trade in different cryptocurrencies then it’s best to choose exchanges that offer a wide variety of trading pairs in order to get the most value for your money. All that said, sometimes a lower trading fee isn’t all that tempting if the platform lacks in other aspects. What fee you’d be comfortable with will also highly depend on the type of investing and trading you’re interested in. If you’re looking for a quick turnaround then a platform with lower fees might be a better choice. On the other hand, if you prefer to invest and hold for the long term then the fees might not be as important to you.
Finding the right crypto exchanges can be a daunting task, as there are so many to choose from and each one of them has its own features that set them apart. That’s why it’s essential to do your research and look around before deciding on which ones you want to use. With these 6 tips in mind, you’ll be able to make the best decision for yourself.
