But trusting a platform with your funds and finding one that offers you all you need can be tricky.
Now, let’s examine what you should keep in mind when searching for your perfect crypto exchange.
Most popular exchanges support hundreds of different coins and tokens, including market giants and newcomers.
Fees
Fees are generally known as the bane of the crypto industry.
Whether you’re buying, selling, staking, or mining, there is always some kind of fee.
For example, Bitmex charges super low maker and taker fees of 0.025% and 0.075%, respectively.
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On the other hand, Bittrex charges a maker and taker fee of 0.35%.
There are also a few exchanges that don’t charge trading fees, such as BlockFi.
Security Features
This is an extremely important aspect of any cryptocurrency exchange.
Crypto exchanges hold mammoth volumes of crypto for their users, making them a prime target for criminals.
There are various green flags regarding a crypto exchange’s security features.
Two-factor authentication, cold fund storage, and wallet address whitelisting are just a few options on offer today.
Fund Insurance
Many crypto exchanges offer fund insurance for those who lose funds via a technical issue or theft.
Take Binance, for example.
This platform offers insurance for U.S dollar deposits up to $250,000 within the United States.
The platform works with the Federal Deposit Insurance Corporation (FDIC) to make this possible.
Fund insurance does not apply to financial losses suffered through market changes.
Some exchange interfaces can be very intimidating and confusing.
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This could even put you off crypto trading entirely.
But there are many exchanges out there that offer simple, straightforward interfaces for all experience levels.
Some exchanges offer two different interfaces for experienced and novice traders.
Binance also offers two different user interfaces via its smartphone app.
Geographical Availability
As with many websites, crypto exchanges are subject to geographical availability.
Many of the biggest crypto exchanges are available in many locations.
Additionally, differing local financial laws can result in partial availability.
Certain digital assets can also be limited based on the trader’s location.
Reputation
An exchange’s reputation is another important factor you should consider.
Even if an exchange is popular, it isn’t necessarily safe or trustworthy.
It’s always worth researching any exchange you’re considering to determine whether it’s wise to sign up.
