How to Select a Crypto Exchange for Beginners to Crypto by@samiranmondal

How to Select a Crypto Exchange for Beginners to Crypto

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Samiran Mondal

Samiran is a Journalist at Hackernoon, Benzinga, Investing & Founder & CEO at News Coverage Agency.

Cryptocurrencies are, beyond no reasonable doubt, one of the world's promising investment opportunities. Over the recent years, crypto markets have been booming with sensational gains attracting speculators and investors. On the other hand, crypto exchanges offer diversified solutions to existing traders and new investors who would like to tap into massive payments in crypto.

There are many factors to consider while selecting these exchanges. Here are some of the most outstanding factors to consider will choosing a crypto trading platform.

Where do you trade?

The area of operation is one of the critical factors to consider before picking a crypto trading platform. The big question is, does your exchange of choice operate in your area or country? If the answer is yes, you will have no problem swapping your favorite tokens. On the contrary, it becomes difficult to use if the platform is restricted to operating with your jurisdiction.

Different countries have different regulations and laws on cryptocurrency trading. For that matter, exchanges ought to comply with the set trading legislations before they are allowed to operate with a specific territory.

For instance, users in the US may not enjoy the services of Binance, one of the world's largest exchanges, like their counterparts in other countries.

If you find yourself in such a situation, you may want to consider signing up for a not-restricted platform within your jurisdiction. You may consider platforms like Coinbase and Kraken for the US case to do your crypto trading.

Usability

Is the platform easy to use? Well, these exchanges are built with different layouts. Some give users an easy time, for they are pretty straightforward, while others are quite complicated and may require users to have an in-depth understanding of trading before swapping digital assets on them.

Like any other business, these platforms are meant to fulfill different market niches; some are intended to serve newbies traders while others are best for experienced investors.

Exchanges like Coinbase, Square, Wazirx, Gemini, BlockFi, and Binance might be an excellent choice for newbies. These platforms are pretty straightforward and allow users even with basic trading knowledge to use these efficiently.

For users looking for a more pleasing experience, exchanges like FTX, Kraken, Coinbase Pro, Bitstamp, and Bitfinex might be perfect.

The Cryptocurrency of Choices

As much as these exchanges offer various digital assets, not all digital tokens are listed in every exchange out there. Every trading platform has its criteria for listing cryptocurrency; hence traders need to check where the crypto they want to buy or sell is required for a specific exchange before taking any action.

Decentralized exchanges like Uniswap and DYDX, for instance, tend to offer more trading pairs than their centralized counterparts.

Decentral exchanges might be the best choice for anyone looking forward to tapping into the alternative crypto or ATLs. Even though centralized platforms come with limited pairs, the listing is a continuous process.

Security

Security is crucial to consider before settling for a cryptocurrency swapping platform. At this point, most sites offering digital transfer services have beefed up security through sophisticated algorithms that make it hard for hackers to exploit billions of dollars in crypto assets. These exploits still happen as hackers develop more advanced ways to crack security loopholes.

It's therefore crucial for traders and investors to be on the lookout and settle for the most secure platforms to avoid the risk of losing their precious digital assets.

Trading Fee

A trader needs to consider the cost of doing business on a specific trading platform before engaging in any business activity. Some exchanges allow you to swap between various digital assets with low fees, while others charge high prices for a simple swap.

Many factors may affect trading fees on a trading platform, but it doesn't make sense to pay for increased expenses while another exchange does a similar transaction at a cheaper cost.

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