Understanding and being able to buy, sell or exchange Bitcoin is probably the very first step into the world of digital currencies. This raises an important question – how to choose the right cryptocurrency exchange?
A novice trader has many questions to answer before he/she can be sure that his/her choice is the right one. Depending on the user’s needs, country, trading volume, security and many other factors, he can choose the exchange that meets his requirements.
So what exactly does a trader need to know to make the best choice? Choosing cryptocurrency exchange is not an easy task at all, but our guide is created right for letting you know which ones are the best:
Basic information such as the location of the exchange, the founder’s name and the market they specialize in can be the first step in choosing an exchange.
Bitcoin, like other crypto currencies, is still a relatively unregulated currency in many countries, but things are slowly changing. In a few years, the situation may look very different. With the growing use of cryptocurrency tokens, governments are seeking to gain some control over digital currency transactions. Money laundering, illegal drug smuggling and terrorism are just some of the reasons why authorities seek to gain control over cryptocurrencies.
For this reason, it is very important to find out the geographic location of the exchange before making a decision. The location of an exchange determines the laws it must comply with. Most countries do not have laws related to digital currency, but if and when they start doing so, it could significantly affect a user’s ability to use and trade cryptocurrencies.
The closest example: China is far from the best option for Western sellers, as there are additional fees, it is difficult to verify, and support in English is often not good enough.
More information about the founders of an exchange can also be an important key to an exchange’s reputation. If the founders are anonymous and have not provided evidence of a reserve, that is a good sign to be cautious. On the other hand, if the founders behave decently, openly and declare themselves to the cryptocurrency community, users can be assured that they are in good hands.
Of course, it is very important when choosing an exchange to make sure that it supports the trading pairs that meet your requirements. This is especially true for some tokens that are only offered on one or two trading platforms.
Once you find a platform with suitable trading pairs, the next step is to check the liquidity of the exchange for that pair. If the liquidity ratios are good – which means high trading volume – then transactions will go much easier and faster. It also means that traders can sell the currency without significantly affecting the price.
Trading ETH, BTC, and many other crypto assets is not cheap, which is one of the reasons why exchanges continue to operate. As a rule, exchanges charge a small percentage of the transaction amount. As a rule of thumb, the interest rate is always less than 1%, usually around 0.2%.
There is usually a sliding scale in which the percentage of commission decreases as the user’s monthly trading volume increases. Exchanges make a lot of money this way, so the commission model is unlikely to change.
Users, depending on their needs, may request access to certain types of orders or margin trades. Often experienced users prefer to trade futures and derivatives, so keep this in mind.
A clear, user-friendly interface and fast loading times are something that everyone can enjoy. Ultimately, time spent on complex platforms plays a significant role. For every extra minute a trader can both win and lose. Therefore, the simpler the platform and the faster it works, the better.
However, even more important is the support for mobile devices. Those users who prefer to make transactions on the go should make sure that the exchange has a website adapted for this or a separate application for Android and iOS.
This fact can play an important role, especially for those who are new to trading. A lot can go wrong in the process of trading, and the presence of a reliable support service can save you a lot of nerves and money.
When choosing an exchange, it is useful to know what the most common complaints about it are. When studying cryptocurrency forums, focus on reviews from other users, you can find many complaints about different trading platforms. In case your chosen exchange receives a lot of complaints about account blocking, it may be worth considering other options.
Unfortunately, cryptocurrency exchanges are numerous targets of hackers and can be at risk of attack. Digital currencies are unstable, and an attack can cause prices to drop, resulting in profits for some attackers but not for you.
Secure Trading Platform Must Have:
Two-factor authentication;
Email with PGP encryption;
Alerts via email and SMS;
Portfolio monitoring 24 hours a day, 7 days a week;
Booking confirmation.
If all of these conditions are met, the exchange is very likely to ensure the safety of funds in your wallet. However, we do not recommend storing your coins on the exchange, only those used for trading, and all the rest should be sent to the user’s personal wallet, preferably with cold storage.
Are you looking for a service that will help you achieve your investment goals? Take a look at Quickex. With Quickex’s user-friendly platform and wide range of investment options, this platform will help you get the most out of your money.
With Quickex, there is no need to waste time and money on other platforms. Instead, the service offers trading with minimal commissions and the ability to check cryptocurrency market data in real time. The platform offers the best trading pairs for both buyers and sellers with a strong cryptocurrency portfolio of more than 57 currencies where you will find the most popular options such as Bitcoin, Dogecoin, Ethereum, Tether, Binance Coin and many more.
Quickex is the perfect online service for anyone who wants to trade their way to success. With no minimum number of accounts and access to a wide range of trading instruments, Quickex makes it easy to get started. In addition, the platform is also available in a mobile version, which allows you to trade anywhere and anytime.
Cryptocurrencies can be confusing, but the Quickex app makes it easy to understand. This user-friendly and intuitive service allows you to make informed decisions about your investment portfolio. With all the information you need at your fingertips, you can invest with confidence. So visit the site today and see how Quickex can help you reach your financial goals.
Techstory Editorial
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