How to Choose the Best Exchange to Buy Crypto
It takes workt to figure out which of the nearly 600 cryptocurrency exchanges worldwide is best for you. To make your choice of crypto exchange easier, consider the following recommendations.
Reputation
Reputation is one of the most important things to consider when comparing cryptocurrency exchanges. To allow potential users to see how others feel about their potential crypto exchanges, reputation is built on the sum of the other factors on this list.
It’s only sometimes useful to do your study; even if something worked for someone else doesn’t mean it will work for you. To eliminate them, you should use the good old Google search. It would help if you inquired about the platform’s security, the ease and length of the withdrawal and transfer processes, compliance with tax and other laws, the frequency of its downtimes, and the support staff’s response.
It would help if you waited for a shortlist before seeing how well they handle the next few things.
Geographical Restrictions
Make sure the exchanges on your shortlist are accessible in your country unless you’re ready to utilize a Virtual Private Network (VPN) to access your crypto exchange of choice. Most places still have rules that need to be clarified about cryptocurrency. It’s legal in some places, illegal in others, and not clear at all in others. This impacts the kinds of exchanges that are allowed in that area and the kinds of services that they can offer.
Examples of some of the biggest crypto exchanges and the regional limitations that their users currently face include Binance being unavailable in Canada, Malaysia, the Netherlands, and the United States and Crypto.com being unavailable in Afghanistan, Albania, and Algeria.
Security
After confirming that the exchanges on your shortlist are available where you live, you should consider how secure your exchange funds are and how well they can protect your interests. Hacks happen often these days, and most big exchanges have been hacked in the past. However, you want to ensure they haven’t been hacked too often and that users get their money back.
It would help if you chose exchanges that make it more difficult for users to join the platform when it comes to security. It’s easier to keep track of your money if a platform asks for many details. This is particularly true if your account gets hacked or you make a mistake with a transaction.
Supported Coins
The whole point of joining a cryptocurrency exchange is to access cryptocurrency. As a result, the best exchanges allow you to access the greatest number of cryptocurrencies on their sites. This is handy for people who want to spend and trade between crypto options to make money. If you want to make more money, having faster and more access to these cryptos can make all the difference.
Number of fiat currencies supported
The different crypto currencies offered are as important as the number of cryptocurrencies you can access on the platform. Your chosen crypto exchange should allow you to input and receive funds in as many fiat currencies as possible. This lets you make transactions in fiat currency, which comes in handy when your main cryptocurrency options are unstable.
Your exchange of choice should offer more options from around the world, in addition to standard currency pairs like USD, GBP, and EUR, that can allow you to take advantage of unique chances to make a profit.
Liquidity
The exchange discusses the ease with which cryptocurrencies can be traded for one another and how quickly they can be removed, either as crypto or fiat. Exchanges that see more trades will likely have more liquidity, allow you to access your funds easily, and are more secure overall.
Regulatory Compliance
Where they are licensed and how well they follow the rules are two of the most important things to consider when choosing someone to help you keep your money. If the exchange has been under governmental review recently, you should check as many Google searches as possible to see what they were looking into and how many times they have been in trouble with the law.
You can review the validity of their licenses on the websites of the agencies they are licensed with, as well as the agencies they are licensed with.
Ease of Use
The crypto exchange’s ease of use is the last thing. You want an exchange that works on iOS, Android, Windows, and Mac, so going shopping for devices doesn’t get in the way. To switch between devices easily, you want one that lets you quickly log in, maybe with a master login or biometric access. The design should be simple to understand at first glance to allow you to get the most out of it without getting lost in features you don’t need. There should also be many options for depositing and withdrawing money to make things as easy as possible.
