Looking for the right cryptocurrency exchange is the first step you will have to take to become a profitable crypto investor or a trader. Many beginners tend to overlook the importance of investing or trading with a crypto exchange software that can meet their needs, which is why many people are forced to exit the crypto market sooner than they had planned to.
Crypto market, even though now 12 years old, is still maturing and providing investors and traders with countless opportunities to make profits. However, crypto trading or investing involves risk and the processes involved can be too confusing for many. Today, we will discuss cryptocurrency exchanges and what exactly you should be looking for.
As you may already know, a lot of people see crypto investing or trading as intimidating, mainly because the crypto market is almost always presented to people as a very technical financial market. However, once you start you will see that it’s not like that.
Your success as a crypto investor or a trader or an investor will depend on the crypto exchange platform you decide to put your trust in. With the right cryptocurrency exchange, you could start crypto trading or invest in no time, as long as you follow the right process.
The crypto exchange you choose will become your gateway to the crypto market, and that’s just one of the many reasons why it is important to choose the right platform. This guide should help you develop a better understanding of crypto exchanges and allow you to choose a crypto exchange that will meet all of your needs.
What Are Crypto Exchanges?
A Cryptocurrency Exchange is a platform that allows users to buy and sell cryptocurrencies online. Users can also use the crypto exchange platform to trade one cryptocurrency for another, for instance converting Bitcoin (BTC) to Ether (ETH).
Users can use these platforms to purchase crypto assets using fiat currencies, which are currencies backed by governments, such as Euro, USD and GBP. Crypto exchanges will reflect the current market prices of all the cryptocurrencies they are offering on their platform. Many exchange platforms also have graphs and charts to show the price history of cryptocurrencies.
Users who have crypto-assets can also convert them back into fiat currencies on an exchange platform. The users will get the option to leave their funds on the exchange platform so they can buy cryptocurrencies later or withdraw the funds back to their regular bank accounts.
Today, there are thousands of cryptocurrency exchanges that traders and investors can access from anywhere in the world. Therefore, making it difficult for users to choose the right one. However, we will look at a number of factors that will help you determine which cryptocurrency exchange is right for you.
Legitimacy and Security
It is important that you take the time to research and find out whether or not the exchange you are choosing is an authentic and secure platform. The legitimacy and security of an exchange platform will not only help you make sure that your funds will be safe with the platform but it will also give you peace of mind.
A lot of people are looking to have a diverse portfolio and invest in a number of different cryptocurrencies, such traders and investors store their crypto assets on the exchange platform. Otherwise, they would have to invest with a number of wallets, for instance Ethereum wallet to store Ether coins safely.
Scam platforms and unsafe networks have caused traders and investors to suffer from huge financial losses. Think about it, if the platform is not legitimate and safe, your funds and crypto assets stored on the exchange platform could get into the wrong hands. Therefore, it is important to take the time to check the platform’s reputation and its security protocols.
Supported Payment Methods and Cryptocurrencies
Different crypto exchange platforms may have different methods of purchasing cryptocurrencies. Some exchanges accept credit and debit cards, some use PayPal, others support deposits by bank transfer and some might only allow users to pay with cryptocurrencies.
Take the time to review the payment options available on the platform you choose, make sure the supported payment options suit your method of trading or investing.
While most crypto exchanges support big cryptocurrencies like Bitcoin and Ethereum, there are hundreds of cryptocurrencies. If you’re looking to gain exposure to other cryptocurrencies, you should choose a crypto exchange platform that supports all the crypto tokens and coins you’re interested in.
Fee Structure and User Interface
Most crypto exchanges charge a small transaction fee on every transaction you perform using their platform. You should go through the fee structure of the platform you want to go with, this is important as it will allow you to know what you will be dealing with when trading or investing in cryptocurrencies.
Moreover, an exchange platform with an easy-to-use interface and good user experience will make it easy for you to trade cryptocurrencies and use the tools that the platform offers. Different people enjoy using different interfaces, but if you don’t want any problems down the road, make sure that you find the interface easy-to-use when you’re choosing a platform.
Conclusion
All in all you should look for a platform that is safe, easy to use and easy to access. Moreover, if you’re looking to stay in this game for long, you should also look for a Bitcoin wallet or a wallet that supports all cryptocurrencies. If you’re looking to perform trades more frequently, then you can leave your crypto assets on the exchange wallet too.
It is not difficult to see how choosing the right cryptocurrency exchange platform is crucial to your success as a crypto investor or trader. Take your time and do your research.