We are not discussing legendary monsters while speaking of Binance, Kraken, and Robinhood. These all are major cryptocurrency exchanges and digital marketplaces to buy and sell digital coins.
You can’t go to an investment company or your personal bank and acquire cryptocurrency. Once you have opted to acquire Bitcoin, Ethereum, or any other cryptocurrency. You will need to open an account with a crypto coin exchange to convert your cash into digital assets.
Coinbase, the best cryptocurrency exchange, has been present since the first phase of Bitcoin. When there was significantly less regulation over how bitcoin was purchased, sold, and traded. Others, such as Robinhood, are more familiar with their specialized services and have just started allowing their clients to trade cryptocurrencies with their existing accounts.
Today, we will discuss what factors are essential to consider before picking the best exchange for crypto. When it comes to choosing a cryptocurrency exchange, you must consider all of the aspects listed below. Despite the fact that there are numerous variables to examine, you may safely decrease the list by eliminating exchanges that do not meet any of these criteria.
But shouldn’t we take a quick overview of what cryptocurrency exchange is? So, let’s start.
Cryptocurrency Exchange
A crypto coin exchange is a digital marketplace where you can trade digital coins. A crypto exchange can swap one cryptocurrency with another or purchase cryptocurrencies via fiat currency like U.S. Dollar. You can easily convert your cryptocurrencies into U.S. dollars with a cryptocurrency exchange. You can then keep it as currency in your exchange wallet or withdraw it to your regular bank account.
There isn’t a single crypto exchange that is best for every user. You must align your aims while choosing a crypto coin exchange to be successful. If you want to invest in a specific crypto coin. But it isn’t available on all exchanges, you will have to hunt for one that does.
So, What to Look for In a Cryptocurrency Exchange?
Therefore, consider these factors before deciding whenever you are on the edge of selecting the best cryptocurrency exchange.
Security
Any authority does not regulate cryptocurrency, and it is not insured in the same way that bank accounts or traditional investments are. Some cryptocurrency exchanges, like Coinbase, maintain all your U.S. dollars insured and safe in a personal bank account.
Some exchanges have insurance policies in place to protect their user’s digital currency from hacking or fraud. Coinbase, for example, has a $255 million insurance policy. If Coinbase’s reserves were hacked and any quantity of cryptocurrency up to $255 million was stolen, account holders would be protected. It makes it the safest cryptocurrency exchange. Other sites, such as Kraken, rely on their security procedures to secure their users rather than insurance plans. Whether you plan to hold your cryptocurrencies for an extended period or only for a minimal time, exchange security should be your priority.
Accessibility
Due to national or state rules, you may be unable to buy or sell cryptocurrency on specific exchanges depending on your region. Some countries, like China, have outright forbidden individuals from trading on <a hrefcryptocurrency="" exchanges.
On a crypto coin exchange website or within the terms of service, you can typically find info regarding an exchange’s geographic limitations and related accessibility considerations, such as national currency acceptance.
Fee Structure
Another aspect of inspecting while selecting a cryptocurrency exchange is their fee structure. But don’t get discouraged with a hefty fee structure. You need to remember that the easier it is for you to purchase it, the more you will have to pay.
The exchange usually charges at a fixed rate and is generally intended as a specific proportion of your trade volume. Fees are regularly assessed per transaction and can vary most often. You might encounter a different fee structure for any currency you trade on. So, before giving over your cash to a crypto coin exchange, go through your selected exchange’s fee structure to determine what fees they would charge from you on each transaction.
Available Cryptocurrencies
There are thousands of crypto coins in the market, but not all exchanges list all of them. However, if you search for a popular cryptocurrency like Bitcoin or Ethereum, you will find it on any exchange. Cryptocurrencies with a small market cap and meme coins, on the other hand, may require a little more investigation.
On top of the already highly speculative, more established cryptocurrencies, remember that these coins are a generally riskier investment. As a result, many experts urge investors to stick to well-known names such as Bitcoin and Ethereum. It is because every crypto coin you consider buying on an exchange is exposed to significant financial risk. Only trade in a monetary value you are willing to lose.
Conclusion
Additional considerations can be made based on your personal preferences while choosing the safest cryptocurrency exchange. It could include a help desk. How convenient an exchange’s mobile application is, and how easy it is to understand an exchange. When it comes to crypto, taking your time to study as excessively as possible before investing is the most appreciated thing you can do to achieve success.
