Cryptocurrency trading is gaining enormous popularity nowadays. There are numerous exchanges for trading available. The question is – how to pick a crypto exchange properly. Functionally, cryptocurrency exchanges are virtual resources where you can exchange one cryptocurrency for another. Many support the exchange of cryptocurrency for fiat money and vice versa. However, not any exchange allows you to trade different pairs.
An exchange of one cryptocurrency for another is possible if there is a corresponding pair on the exchange.
For example, the presence of a BTC / XRP pair means that you can exchange Bitcoin for Ripple on this exchange. The absence of a pair will imply that it is impossible to do here. The situation with fiat money is similar.
Regardless of your experience, you can handle the selection process if you consider the following factors.
1. Security
This is one of the most important factors to consider when choosing an exchange. Since there are no centralized authorities in the world of cryptocurrencies, you cannot blame anyone for ultimately losing your cryptocurrencies. Even though most crypto exchanges offer their users to start using hardware wallets to store their funds, it is still not possible to completely replace the exchange wallets that users utilize. Using an exchange wallet, users can quickly start trading on the exchange without any delay.
2. Location
The location of the crypto exchange is a significant feature that must be considered before choosing one. By location, we mean places in which the exchange operates at full strength. It is also essential to see the company registration and if it applies to regions where it operates.
For example, exchanges such as Coinbase do not provide all the features in many Asian countries. Although you can register and use the platform as a cryptocurrency wallet, you cannot transfer funds to purchase cryptocurrencies in the first place if you belong to these Asian regions.
3. Interface
It is not a secret that many users may not start using a website or a platform if it does not feature a straightforward or intuitive interface. That is why many popular crypto exchanges are trying to come up with simple features and functions, so they would not lose users at this stage.
4. Volume and Liquidity
When you choose a crypto-exchange, you will need to see the volume of trade that the exchange regularly receives. If the exchange does not receive a large trading volume, then the opportunities for placing winning trades are also reduced. Thus, it is pointless to choose this particular exchange. By choosing an exchange that provides high liquidity, you can also very quickly dilute all your assets during a bear market. Thus, the overall loss is reduced under such adverse trading conditions. Most old exchanges offer a high level of liquidity compared to new exchanges.
5. The Learning Process
Even though it sounds weird, but nowadays, most cryptocurrency traders are not so experienced, and they want to be appropriately educated. That is why the education section on exchanges
– is always a good sign for all traders.
The Crypto Exchanges to Consider Nowadays
If you follow news and updates from the cryptocurrency world, you may have heard about several exchanges for sure. Sometimes, the influencers of the digital money world promote exchanges as a part of the cooperation, but it does mean that this or that exchange can meet your requirements. In this regard, the selection process has many personal factors upon consideration. Let us take a look at the most popular and reliable platforms.
Binaryx
This cryptocurrency exchange is a startup that has many prospects for all traders, regardless of their experience. Currently, this exchange platform features more than 40 different pairs for trading, including Bitcoin, Ethereum, XRP, and Litecoin. All registered users can participate in buying
and selling Bitcoin processes by using an intuitive interface of the platform. Among the many features presented there, it is worth mentioning that people can use a marketplace feature. Namely, you can choose expert traders from the list based on their reputation, and start trading immediately. Binaryx works on the most reliable cryptocurrency trading platform that allows users to buy and sell cryptocurrency with professional traders.
Kraken
Kraken is a US-based cryptocurrency exchange, founded in 2011. The exchange provides cryptocurrency to fiat trading and provides price information to Bloomberg Terminal.
Bitfinex
Bitfinex is one of the largest in terms of trading volume today, supports 65 pairs for exchange, and the ability to withdraw in 26 currencies. One of the largest that supports multiple regions and languages. For the withdrawal of dollars, user verification is required. For other operations, email is enough. In August 2016, it was hacked, but managed to recover thanks to the functionality, excellent technical support, and proper tools for traders.
Conclusion
When it comes to choosing an exchange, do not forget to consider all the factors mentioned above. If you value your trading process and assets, then it is worth spending time on research. Make sure that the chosen platform meets your needs and requirements.
