Six Important Factors That Will Help You to Choose the Best Cryptocurrency Exchange

As the crypto market is getting bigger and mature, likewise the numbers of cryptocurrency exchanges are growing rapidly.  According to the CoinMarketCap, now more than 250 cryptocurrency exchanges are in the market. In this scenario, if you are looking for right exchange, is not so easy. Because you have to consider plenty of things like usability, functionality, security and more before choosing the right one. In this guide we are highlighting six factors that will help you to choose the best cryptocurrency exchange.

Availability of the coin:

Now more than 250 cryptocurrency exchanges are in the market and maximum exchanges don’t offer too many option in matter of availability of coin. Bitcoin and Ethereum are two popular cryptocurrency that you will get in all exchanges. But if you have coin except these two, you will face problem. So in this case make sure, exchange offers diverse option of coins thereby you can get more choices of coins to purchase.   

Liquidity:

Liquidity is an essential factor that you must consider before choosing the cryptocurrency exchange. Simply put, liquidity refers easy buying and selling in the market. If particular exchange has a high liquidity that means there is good number of buyers and sellers, besides high liquidity ensures quick transaction and better price. So if exchange has huge liquidity is considered good. 

Security:

Make sure that security of the exchange is of the highest level thereby your fund remain safe from any kind of malicious attack. In the matter of security decentralized exchange is always better than centralized exchange. Because decentralized exchange allows you to remain owner of the token and there is no centralized server so there is no chance of hacking. In case if you are using centralized exchange for cryptocurrency trading then you should follow the following things:

  • Deposit your fund in cold storage. This means that your coins are safely tucked away offline, beyond the reach of hackers.
  • Availability of 2- factor authentication enhances the security of your account.
  • Email encryption and verification; for every transaction there will be an email sent to your account to confirm the transaction.
Customer support quality:

Make sure that cryptocurrency exchange is providing responsive customer support. Because in this fast paced   Issues on your verification process, deposit/withdrawals, funds reflection and trading orders should be solved quickly by the exchanges.

Trading fee:

Low transaction fees on buying and selling would relatively prevent your margins to be eaten away, especially if you’re a constant trader. It is important to look at the fees of your exchange, to see if it’s relatively comparable to other exchanges.

Ease of use:

The user interface of the exchange should be easy to use and clean to avoid confusion. Having the necessary indicators at the tip of your fingers and the ease of navigating through the platform should make it easy for anyone to use the interface. 

Soumen

Hi, I am Soumen, freelancer content writer and I love to write on crypto industry. I am passionate researcher love to  explore new thing and love to simplify complicated things. When I do not write i watch soccer and play computer game.

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