Cryptocurrency exchanges and brokers allow you to purchase, sell and trade in all crypto coins. Without an exchange, you cannot purchase or sell your virtual coins, though you do have some alternatives.
But, you need to find a good cryptocurrency exchange for it. If you choose an unreliable exchange, you may have waste significant amount of money and time. Hence, you should choose the best cryptocurrency online trading platform. Below here is a guide to help you choose the best exchange for you.
Things to consider when selecting a crypto trading platform online
Before choosing any random exchange, you should consider some factors. The top factor involves security, history of the exchange, transaction fees, liquidity and user experience. Choosing the best exchange may take some time and effort, but it is totally worth it.
An easy option to do it by going through expert reviews. It is important to differentiate between crypto-to-crypto and crypto-to-fiat platforms. The crypto to crypto platform deal in crypto pairs while fiat to crypto platforms deal in buying and selling of crypto via dollars, pounds, yen and Euros etc.
How to choose a reliable cryptocurrency exchange?
When selecting an exchange or broker, remember your mileage can vary. You may want to go for an exchange which has specific coins, trading pairs and features like marginal trading and OTC deals. Once an exchange meets your requirements, you should check the factors mentioned below:
Safety:
Safety is the most important aspect to consider when looking for an exchange as you don’t want your funds to get stolen at all. If a platform is insecure, there are chances of it getting hacked. Thanks to platform such as ETFinance that provides you the safety along with much reliability and affordability.
Technology:
1. The web address of the exchange should commence with HTTPS and not HTTP.
2. It should offer two-factor authentication for login security.
3. Deposits of customers should be done offline in cold storage.
Legal factors:
1. It is suggested to choose an exchange from the same nation in which you are trading as it will be simpler to comply with the regulatory amendments.
Transparency:
1. Has the exchange mentioned its owner’s name, official address as well as members’ name?
2. Transparent exchanges also mention their cold storage address for better trust.
Liquidity:
The higher is the trading volume on an exchange, the more liquid it is. Liquidity makes it easier to get your transactions complete quicker. But it is important to remember here that liquidity can be different for different pairs. It can be high for BTC/USD and low for BTC/EUR. Hence, you should check the liquidity volume first.
Fees:
It is important to compare the fees of different exchanges. Usually, the fee is less than 1% per transactions and may fall if your trading volume is higher. You should also find out about the withdrawal fees. Look out for deposit fee when choosing different mediums like debit card, credit card, internet banking, Skrill, PayPal etc. Sometimes the fees can get as high as 5%.
User experience:
Find out what other users have to say about the exchange you have chosen. See if they have had a good user experience or not.
