We have prepared a guide on how to choose the best crypto exchanges. Thanks to the article that examines the features that need the most attention, you will have a more reasonable idea about the crypto exchange you are trading or you are going to trade.
An exchange platform allows you to buy, sell or trade cryptocurrencies. Some of them offer the possibility of obtaining or separating them against a fiat currency such as the euro or the dollar. They also provide more or less advanced tools to take positions comparable to those of traditional financial markets.
Since the Bitcoin surge at the end of 2017, the cryptocurrency market has come out of the shadows to attract new investors. At the same time, trading platforms and hacking businesses have multiplied. Selecting the one that suits your needs can be difficult, especially if you are a beginner. Depending on your investor profile, the criteria to be taken into account are of variable importance, and the choice of a platform always depends on your personal situation. Before detailing the criteria that will help you select the best platform, remember that the cryptocurrency market is very volatile, and as such, it is subject to strong upward variations, but also downward. Be careful and avoid investing an amount that you are not ready to lose.
Security and reputation
Depositing your funds on a secure and regulated platform is the major criterion for selecting a cryptocurrency trading service. It must provide all the guarantees to protect your investment from possible theft, in particular by keeping most of its assets away from the Internet, on a cold storage system. The history of the platform gives indications on its level of security, but it is not the only criterion. The reputation of a platform also marks the degree of trust that can be placed in it.
The most popular services inevitably attract hackers to become their prime target. A marketplace that has been the victim of theft in the past has necessarily taken measures to avoid any recurrence and to maintain the trust of its customers. A case of piracy alone is not a reason to rule out an exchange for good.
Security also involves methods of authentication and validation of transactions. The platform must absolutely offer two-factor authentication and possibly SMS or email verification. When these features are present, users are encouraged to enable them, but most often they remain optional. Do not deprive yourself, they offer a level of security much higher than a simple password.
Volume and liquidity
A platform with a large trading volume usually offers more liquidity to quickly close a position. When the volume of a pair is low, it is much more difficult to part with it even at a price close to the market. All of the platforms we selected are among the big ones in terms of volume, but on smaller exchanges and second-tier cryptocurrencies, lack of liquidity can become a real problem.
A range of services tailored to your needs
If you just want to invest for the medium or long term in a popular cryptocurrency, the diversity of the offer is a secondary criterion. However, if you are going to acquire an asset from euros or dollars, make sure that the platform supports it. Even today, most of them only support exchanges between cryptocurrencies.
Investors who are more seasoned and willing to take more risk will prefer a market with many assets and varied trading pairs to increase the opportunities. The presence of other products and investment options such as leverage or futures contracts may also constitute a selection criterion.
Trading fees and ease of use
Entering the cryptocurrency market with a capital reduced by 5 or 10% due to fees is of course not the best possible start. However, relatively high fees can be quite acceptable if the service is up to par, and if it meets your expectations. Medium- and long-term investors are less sensitive to this, as they carry out a limited number of transactions. Regular traders are more attentive to this criterion. With a high number of transactions and a generally lower return, fees play a significant role.
If you are a beginner asking how to choose the best crypto exchanges, prefer platforms that offer a user experience within your reach. A complex interface with advanced trading tools will do you nothing. On the contrary, you will not be able to understand it immediately, and you may even make a mistake.
Finally, the quality of customer service is also an important factor to take into account. The best is of course the one you never contact. Unfortunately, it remains difficult to form an opinion. Customer feedback found on the internet is generally negative. Satisfied users rarely take the time to post a positive comment. However, be sure of its reputation and the means of communication it offers. Most platforms have email support that must respond within 48 hours. Some also have telephone support or online support available 24/24 and 7/7.
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