Here are five factors that can help determine which exchange is right for them:
Today, trading and investing in digital assets is quite simple, thanks to the many crypto exchanges available to you. Simply choose the right exchange, create an account and buy/sell/trade cryptocurrency with ease. However, with so many different options to choose from, getting your money behind a particular exchange is easier said than done.
But do not worry; Here are five factors that can help you determine which exchange is right for you:
The first thing you should look at is the security of the exchange. Opt for a platform that always seeks to secure its systems. Top exchanges will host regular bug bounty programs, where they reward hackers for reporting network vulnerabilities. Good crypto exchanges will also offer two-factor authentication and other strong security measures to protect your holdings. And just as an added security measure, they will also secure customer assets against hacks and attacks.
2. Investment and trading options: A good cryptocurrency exchange will provide you with a variety of investment and trading avenues. For example, some platforms in India offer over 300 cryptocurrencies for investors and traders to choose from. In addition to these coins and tokens, a few exchanges also offer alternative crypto products, such as futures, ETFs, etc.
3. Liquidity: Liquidity determines how easy it will be for you to turn your crypto into fiat and vice versa. Therefore, you should look for a crypto exchange with good liquidity. The easiest way to get an idea of an exchange’s liquidity is to look at its 24-hour trading volume; the higher, the better. There are several platforms that provide real-time data, including trading volumes, of different crypto exchanges in India and around the world.
4. Fees: All crypto exchanges will have a set of fees. However, the number of fees and the extent to which they eat away at your revenue will vary from exchange to exchange. Generally speaking, the best platforms will have transaction fees of 0.2% or less. You should also compare trading, deposit, withdrawal, and balance transfer fees before choosing a crypto exchange.
5. Features: Look for things like fast onboarding, 24/7 customer support, a mobile phone app, a wide selection of payment methods, and more. These small features can make a big difference in your trading/investing experience. When it comes to mobile apps, you should also check customer reviews and ratings. This will give you a fair idea of the quality of the service offered.
6. Awards: Free crypto/money never hurts. Therefore, as an additional added value, you should look for cryptocurrency exchanges that reward good customers. Some exchanges will offer a referral bonus where you can earn up to 50% of the trading fees paid by the friends and family you refer. Some exchanges also offer crypto rewards for learning about projects and taking quizzes.
A good cryptocurrency exchange will have a large customer base. It is an indicator that other investors place their trust in said platform. Also remember not to opt for an exchange just because it has the lowest fees; he must also tick all the other boxes. Finally, crypto markets are highly volatile – remember to back all exchanges and investments with thorough market research and understanding.