Now people had been hearing lot from the eminent Cryptocurrency Exchange Conference held recently and checked out number of superlative upcoming strategies of How to Select the Best Cryptocurrency Exchange. People are in the zeal mood for some important strategies more than ever before.
Selecting the best cryptocurrency exchange for you can be hard process — particularly if you’re new to cryptocurrency and altcoin trading. This article on how to select the best cryptocurrency exchange would walk you through five key factors to consider when selecting a cryptocurrency exchange.
Where should they start?
For people getting started investing in cryptocurrency, they would likely be looking to exchange fiat (USD, EUR, and GBP) currencies for Bitcoin, Bitcoin Cash, or Ethereum. For starters, it is best recommended using Coinbase to purchase first bit of crypto with either your debit or credit card.
Look out for five core values for selecting a cryptocurrency exchange
Geographical restrictions;
Fees;
Liquidity & volume;
Security & anonymity
User interface
Five important Factors to Consider before selecting a Cryptocurrency Exchange
Keep in mind that exchanges should not be used to store large amounts of crypto (BTC, ETH, BCH, etc…). A good rule for users is that they should not be keeping more than one month’s salary on an exchange, and should then be moving it to cold storage or a cryptocurrency wallet.
Geographical Restrictions
Most users are unaware that most cryptocurrency exchanges limit the geographical scope and location of its users. If you have good knowledge with a country’s regulations and laws towards cryptocurrencies and blockchain, it’s strongly suggested to select an exchange which transacts with such country.
Fees
The users can always look for an exchange which explicitly states how much they charge per transaction in plain language, as steep fees could significantly add up and have a significant impact on your overall purchasing power. Also beware of exchanges who tout low trading fees but secretly charge exorbitant and outrageous withdrawal fees.
Liquidity
High liquidity and volume is a good indication of an exchange’s ability to fill your order at any point around the clock. If people are looking to trade a widely used cryptocurrency such as a Bitcoin, Litecoin, or Ethereum, using a centralized exchange is likely your best bet due to the ability of a large centralized exchange to fill your order within a mere matter of seconds.
In addition if people are looking to trade smaller altcoins and ERC20 tokens, you might be strapped for options and have to look to a smaller exchange to fill such orders. Finally keep in mind that exchanges with higher liquidity and volume typically have more established reputation in the blockchain ecosystem.
Security & Anonymity
Security must be strong focus when selecting the best cryptocurrency exchange for you. So opt for exchanges which offer
Two-factor authentication (SMS or Google Authenticator)
Complicated captchas
Anonymity altogether
You can also use a decentralized exchange, which permit users to sign up without having to offer any identifying details. Finally decentralized exchanges provide the ultimate protection for your funds and identity in terms of exchanges.
User Interface
We know that centralized exchanges have higher liquidity and higher volumes of trades; they have typically invested large sums into simplifying their trading interface. Simple and easy to use interface primarily assists to keep users and investors informed while having some degree of guarantee that they are executing the proper action.
With increasing familiarity of decentralized exchanges and increased trading volume, decentralized exchanges are starting to ameliorate their UI in hopes of attracting both seasoned and novice investors.
In conclusion it could be difficult task selecting safe and secure cryptocurrency exchange. However, if people keep the above five factors in mind when selecting an exchange, you’ll be off great start.
