Keeping track of the growing number of crypto exchanges can be challenging. New ones are popping up every day, and existing platforms are expanding to meet the growing demand for crypto trading.
If you’ve been thinking about dipping your toe into the world of cryptocurrency investing, now is a great time. It makes sense to invest now while prices are still relatively affordable and before regulations come into place to protect investors. But before you start trading, you must choose a trustworthy crypto exchange website that has your best interests at heart.
1. Reputation
This will give you an idea of how trustworthy and reliable a platform is. You can read reviews from other customers and see how the exchange has been rated by independent websites. Some of the more well-known ones, such as Coinbase and Binance, have been around for several years and have a strong reputation, whereas others are completely new and unproven. Be extra careful when choosing a new, unproven platform.
2. Security
Security is paramount for any online exchange, and especially for those that handle cryptocurrencies. You need to know that the platform is regularly updating its security systems and has the latest malware detection software to protect your assets from hackers. Excellent security is transparent. You should be able to see what security features the exchange has and how they protect your assets. If an exchange is not transparent about its security features, you should be very cautious and consider choosing another platform.
3. Verification requirements
Reliable exchanges may ask you to complete an ID verification process before you can start trading and withdrawing funds. This is to ensure that you’re a real person and not a hacker trying to gain access to the platform by stealing someone else’s identity. Most crypto websites will have a verification process where you submit a few personal details and a photo of your government-issued ID. This usually requires you to link your bank account or credit card to fund your account. This is to protect the exchange from money laundering and other financial crimes.
4. Transparency
You should be able to see how the platform operates, including how they handle customer funds and how the trading process works. Some exchanges share their trading volumes and show the current order book or trading charts to give an insight into their trading environment. This can help you make more informed decisions about when to buy or sell.
5. Trading conditions
If you’re new to crypto trading, you should look for an exchange that offers beginner-friendly terms and conditions. Some platforms have a steep learning curve and may be intimidating to new traders. There are a few things to look out for, such as the minimum amount of funds you have to deposit to open an account and the transaction fees charged by the exchange.
The minimum deposit to open an account should be very low and not require thousands of dollars. You should also be able to choose the transaction fee that works best for you. The trading conditions will also vary depending on which coins you want to buy and sell. Some exchanges only deal in a few coins, whereas others deal in hundreds of different cryptocurrencies.
6. Fees
Cryptocurrency exchanges are for-profit businesses that need to make money to stay operational. They make their money from transaction fees and the spread on prices.
The typical transaction fees are low, but they can vary from platform to platform. They can also be charged per coin, so if you are trading various coins, you may pay a small fee for each one. Look for an exchange that is transparent about their fees to avoid overpaying in the end.
7. Customer support
After you’ve chosen a website, sign up and start trading. But if you run into trouble, how easy will it be to get help? Customer support can be a good indicator of how well a platform is managed and how much attention it pays to its customers. Any reputable exchange will have a support team ready to help you with any issues you might have. Look for a website with a strong support team that quickly responds to issues.
Summary
Choosing an exchange with a strong track record in terms of security, transparency, and operating conditions will help you feel more confident about trading cryptocurrencies. You should also check the website’s reputation and read reviews from other customers to get an idea of the overall customer experience. Remember to check the transaction fees, minimum deposit amount, and the spread on prices before signing up with an exchange. And don’t forget to check out the customer support to see their responsiveness to customers.
