Crypto exchanges help traders and investors to sell or buy cryptocurrencies and they can exchange their fiat currencies to buy cryptocurrencies. Mostly, they act as brokerage accounts. While choosing a crypto exchange, most investors consider factors like ease of use, liquidity, etc. But there are many more factors that are to be considered when selecting a crypto exchange. However, the priorities of investors vary. Still, there are some factors in common.
The first thing to consider is the exchange you choose to serve in the country or state you live in. Do not choose exchanges that cannot legally serve the customers where you live. Some crypto exchanges have websites for different countries.
If you want to execute trades at the time you are convenient, the exchange must be liquid enough. Liquidity means the exchange must have high trade volumes to buy or sell cryptocurrencies at any time. To achieve liquidity, the exchange must have many users or users who hold many assets and can trade frequently. As the crypto market is volatile, the liquidity of exchanges is very important.
- Ease of use
You can notice exchanges with order books or interfaces loaded with information and charts. However, they might not be convenient for newbie traders. It is best to choose an exchange that is friendly for beginners. Some crypto exchanges offer two options, basic and advanced, for users to choose from.
- Asset options
The number of cryptocurrencies is rising every day. Therefore, no exchange can offer all the asset options for users. Most exchanges have popular crypto coins, however, new crypto coins may not be available in all exchanges. Therefore, traders and investors looking for less popular crypto coins must look for small exchanges. Try to research some exchanges to find the assets they offer.
People now rely on reviews before choosing any product or service. Try the same technique while choosing crypto exchanges too. Try to find what the existing or past users have to say about the exchange. It will help you to find a reputable option.
Many exchanges have faced security problems in many instances. Therefore, security is a prior concern when choosing crypto exchanges. When you hand over your asset to a platform, the platform you choose has to be trustworthy. If the exchange is hacked, all the assets of the users will be stolen. You can get information about their security measures on their website. However, no exchange can offer a 100% guarantee and it is extremely difficult to find a crypto exchange with maximum security. The best thing to do is to check for the exchange that has survived for the longest time with more customers and minimal security issues.
- Customer support
Even if you carefully choose your exchange, you must be prepared to face issues at some point in time. In such cases, good customer support is necessary because your money is involved. Crypto markets can have instant fluctuations and therefore delay in responses will affect your money. Therefore, check for the efficiency of the customer support of your crypto exchange.