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What do You Need to Know Before Choosing a Crypto Exchange?

With the big news about Bitcoin, blockchain technology is finally getting acknowledged at an institutional level. And it is the outcome of its rising popularity over the past 12 years.

This is both intriguing and frightening.

With thousands of cryptocurrency services out there, like coins, wallets, or exchange platforms, it’s perfectly normal to feel overwhelmed when you have to choose one of them.

However, if you take into account some key characteristics, you may notice that the number of good options is not that big – especially when it comes to crypto exchanges.

So let’s see what you should consider before making a decision.

1.    Reliability

The first thing you should check is obviously the authenticity of the platform. The questionable URL terms are a strong indication that you should avoid it, but not all malicious actors are that careless. Therefore, you should also answer the following questions:

  • Can you easily find information about the parent company?
  • Do their promises sound realistic?
  • Is there no contradiction between the information?

If the answer to any of the questions is “no”, then you should avoid the platform with all costs. There is no crypto exchange that can make you rich overnight, there is no product without a producer, and there is no versatile feature.

2.    The frontend

Nothing is more frustrating than losing your savings just because you pushed the wrong button. In order to avoid this kind of event, be sure to choose a platform with an interface that is easy to understand, alongside clear and organized content.

3.    The cryptocurrencies they work with

There is no cryptocurrency that is generally good for everyone, since every crypto user has different needs. So the decision is on you. But make sure that the platform gives you what you need to achieve your goals.

For example, if you want to feel secure, you should look for stable coins on the crypto exchange. If you are adventurous and you like to take risks, then go for platforms with a large crypto offer. And if you are looking for great income, consider those coins with a high market cap.

4.    Charges

Like any other service, crypto exchanges will ask you to pay some fees, so that the team will have the resources they need to provide you with the best features.

However, don’t forget that you need to benefit too, so we recommend avoiding expensive exchange platforms. Some of the best charge users with just 0.1-0.2% of the trading value.

5.    Assistance

The companies that value the needs of their users are definitely on top because they invest a lot in creating and maintaining a relationship with you. It’s a great relief to know that if you make a mistake or you encounter an awful exchange partner, there’s a team ready to help you.

But not all of the companies offer qualitative support, so you should pay attention to how they approach customers, how clear are their indications, and how quickly they respond to requests.

Check their FAQ section, browse through reviews, ask for opinions – be sure that you get the best assistance.

It’s a plus if the platform also provides you with educational content, that answers the basic question in the domain, like “How do I buy Bitcoin?”, in order to make joining this world a lot easier.

6.    The technologies used

The Crypto area is progressing fast. The developers are consistently creating new features in order to expand crypto usability, each of them opening new gates.

With that being said, you should also consider the exchange platforms that use the latest technologies, because that way you actively support the efforts to make crypto overpower fiat.

You can take a look at Timex.io for example, an Australian crypto exchange that uses the Plasma hybrid technology for scalability improvement. They maintain the transparency of a decentralized platform while securing your personal data. 

Conclusion

There are way too many crypto exchange platforms worldwide, but very few of them are actually worth it. By taking into consideration those six key elements, making a decision will be a lot easier.

What is really important is to set up your expectations and choose according to them.

Leah Hutton (Luxembourg)

Leah Hutton has recently joined Tokenhell team as a freelance writer. She has comprehensive knowledge of blockchain and various cryptocurrencies.

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