Mini-Guide to Selecting Bitcoin Exchange




The craze about crypto assets or cryptocurrencies is increasing daily, and major investors are trying to invest their funds in crypto assets. The investors are on an active lookout for the best crypto exchange platform. So, choosing the best crypto exchange is necessary when you want to invest your funds in crypto assets. How would you choose the best exchange? Here, you can find some factors that you need to consider while you choose a crypto exchange.

Check the security features and authenticity of crypto exchange:

When you want to invest in cryptocurrency, then you would want a platform that gives you a seamless user experience and security while trading. Ease of use, security, presence of different tokens and good customer support are the underpinning of a good crypto exchange platform. Earlier, major crypto exchanges have been attacked by malware, such as Mt. Gox and Coincheck. So, check their safety protocol before you choose an exchange. Major exchanges are suffering from an issue called pump and dump, where the value of your cryptocurrency can rise higher, and you can invest in a cryptocurrency to get a high return. Once you invest your amount, it will automatically decrease, and you will lose your funds. To prevent this issue, secured platforms are using some tokens. In this regard, you can try crypto trading as it is a secured and easy-to-use platform for trading in crypto.

Check the modes of purchase available on crypto exchanges:

Different crypto exchanges have different payment methods. You need to link your bank account with your crypto account to buy a cryptocurrency, and a few of them can accept PayPal, debit cards and credit cards. If you do not have any idea about cryptocurrency and you are going to invest in crypto for the first time, then you need to buy cryptocurrency with fiat money, and you must choose a crypto exchange that accepts fiat currency. Apart from that, you must also check the purchase process time of these platforms before you choose. For example, you can buy cryptocurrency from some exchanges where your funds will be credited to your account or wallet instantly, and few platforms can take 7-10 days to complete a payment process.

Diverse your investment portfolio by choosing the best crypto exchange:

Most of the crypto exchanges have a limited number of tokens, and you can buy Bitcoin and Ethereum from these exchanges. But it is better to choose a crypto exchange that has multiple tokens. For example, you can find four major currencies in Coinbase, and you can use Binance to trade in Bitcoin, altcoin, and other cryptocurrencies.

In the case of stablecoins, assets like gold, US dollar, oil and other cryptocurrencies are working as custodial, and it will give you legal protection. You can choose an exchange where stablecoins are available because you can prevent the volatility of cryptocurrency by investing in stablecoins. For example, you can choose TrueUSD.

What to choose – trading exchange, broker, or a P2P exchange?

You can buy and sell cryptocurrencies through a trading exchange, but you need to pay a fee for each of your transactions. You can find three types of crypto exchanges in the market such as trading exchanges, brokers and P2P exchanges. Coinbase and Binance are the leading trading exchanges available in the market. On the other part, you can choose a P2P exchange to interact with the buyers and sellers to buy or sell cryptocurrencies. Apart from that, some brokers are available like AvaTrade, which will help you buy and sell cryptocurrencies.

Check the charges of such exchanges:

It is a crucial factor to choose a crypto exchange because different platforms can charge you different fees. Some exchanges can offer you a discounted fee on your first transaction, and a few of them can offer no charge on your purchases. So, you must check their fees before you choose.

Apart from that, you need to choose a crypto exchange that is easy to use and navigate. You can find valuable information about cryptocurrencies on these exchanges, and few of them have live market statistics. So, you can check such features of such crypto exchanges available in the market to choose the best one.

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