6 FACTORS TO CONSIDER WHEN CHOOSING A CRYPTOCURRENCY EXCHANGE

Cryptocurrencies began as a cool project before transforming into an investment opportunity, and they are now becoming a popular way of transacting. Whether you are into crypto trading or you want a convenient way of transacting online, you will want a reliable crypto exchange. Read on to learn about the factors you should consider when choosing a crypto exchange.

Generally, it’s better to choose a crypto exchange that is based in the country you reside in. For instance, if you are in Australia, you will want to find crypto exchanges in Australia to be able to buy cryptocurrency directly with AUD. It will also make things easier when filing taxes at the end of the year, along with any regulatory changes, and improved customer service. 

Platform authenticity and security are paramount. With the increasing cybersecurity threats in all sectors and the hacking incidents of Coincheck and Mt. Gox, you want to ensure you choose a trustworthy platform with strong security measures in place. Prioritize crypto exchanges that provide: 

• Two-factor authorization (2FA)
• Biometric face recognition
• A web address that begins with HTTPS (not HTTP)
• Regular security reviews
• Sophisticated multi-layered security

A know-your-customer policy (KYC)

The transaction fees charged by crypto exchanges matter, and they can greatly vary, with several platforms having hidden charges. Be sure to choose a platform that charges comparable and reasonable fees. Typically, the standard charge should be one percent per transaction, but it can be lower or higher depending on the amount you are transacting.

The functionality and the user interface are also important features to consider when choosing a crypto exchange. While having all the complex trading features can be appealing to experienced crypto traders doing high volume, leverage, and futures trading, most crypto users want a simple and easy-to-understand way of selling and buying cryptos. If this is you, be sure to find a platform that: 

• Provides a user-friendly experience
• Provides a clear display of the current markets and your assets
• Provides guides on the basics of buying and selling cryptos
• Has an easy to use mobile or desktop app

Offers a free, personal wallet upon sign up

Most platforms only offer major digital currencies like Bitcoin, Ethereum, and Litecoin, but there are hundreds of other digital currencies that you can choose from. If you are interested in buying and selling these new currencies, you will want to check if they are provided by your crypto exchange.

The methods of purchase vary between exchanges. Some platforms require deposits through PayPal, others prefer bank transfers, and some accept debit and credit cards. Choose an exchange that accepts your convenient payment method. In addition, take note of the time an exchange takes to process a transaction; some platforms take days while it’s instant in other cases.

Cryptocurrency exchanges have different ways of regulating users, building user experience, and enhancing security. Be sure to balance a number of different considerations when choosing a crypto exchange.