A cryptocurrency exchange can be seen as a type of marketplace that you can visit to purchase various types of cryptocurrencies. There are now hundreds of exchanges worldwide and we can imagine that you can no longer see which one you should choose. Exchanges can be quite different from each other. This difference lies in the cryptocurrency offerings, the registration process, costs and so on.
If you start trading in cryptocurrency, you are probably already happy that you are able to buy a cryptocurrency in the first place. But why would you not get off to a good start immediately, with a reliable and cheap exchange? This is why we have compiled our top 5 best cryptocurrency exchanges. Incidentally, it is not wrong to register with all five, because not every exchange offers every cryptocurrency.
What should you pay attention to when choosing a crypto exchange?
As already indicated, exchanges can differ from each other. It is good for each trader to determine what is important. When determining the correct exchange or exchanges you can keep the following in mind.
Most exchanges have only been around for a few years, it’s all new and it’s still in its infancy. Various exchanges have already been stolen in the past. Hackers managed to penetrate and could steal for millions. As a consumer, you have to be careful, because it is not obvious that exchanges can always keep your coins safe. Nevertheless, over the years a few exchanges have been building a good reputation when it comes to safety. You can search on the internet for reviews about the exchange in question to see if there have been any abuses or problems. Furthermore, it is advisable to see how exchanges have arranged the safety aspect. By the way, we always give the tip to withdraw all coins from the exchange and store them on a cold wallet (hardware wallet).
There are exchanges that opt for a small selection with only strong and well-known coins. Coinbase is a good example. Other exchanges, on the other hand, opt for quantity, which means that you as a trader almost don’t have to change to another exchange. In addition, there are exchanges that only have relatively unknown crypto coins (usually very low cap coins).
There are exchanges where you can only deposit certain cryptocurrencies. After the deposit, you can trade that particular currency to another cryptocurrency. For example, you can only deposit Bitcoin on the exchange and you can trade these Bitcoins for other coins (like Ripple or Litecoin). On the other hand, you have exchanges where you can purchase one or more coins directly with fiat money. It is good to see which payment method you use. For example, (extra) costs can be charged when purchasing via a credit card. If you want to purchase a cryptocurrency through a bank transfer, you have to take into account that it can take a few days.
Exchanges charge costs. This can happen in different ways. Most exchanges charge costs for trading in cryptocurrency. In addition, costs can be charged for making deposits and / or withdrawals. Through a few exchanges it is possible to get a discount, for example by holding certain cryptocoins (from the exchange itself).
Due to demand, the price can differ considerably per exchange. It can be worth checking the rate at different exchanges. However, it may differ per exchange in terms of additional costs and you must include these in the choice you going to make.
Can you easily navigate through the website, both on mobile and desktop? Is everything clearly defined, and do you not have to search the website to find something? It is incredibly important that you as a trader can work well on a website in order to achieve the goals as simply as possible. Nothing is more annoying than a website where you can’t find anything, or because the website is very slow.
If something goes wrong, it is nice to be able to contact the support department. What are the options for contacting and are they able to answer your questions correctly? In addition, speed is very important, since you do not want to wait a whole day, when a certain price of a coin is low. There are several cases in the past about cryptocurrency exchanges not even reacting when you contact them. If you can’t move your tokens (because of any reason), it is extremely important to have a support that is transparent and quick. It’s your hard-earned money after all.