Exchanges are essential for the crypto infrastructure. On Coinranking, we have more than 300 exchanges listed, so, you might get flooded with the enormously wide range of exchanges out there. How on earth do you choose the best one for your next trade? Well, take a deep breath, and learn what things to look out for.
Most importantly and above all, stay cautious if you’re going to trade. Unfortunately, scammers are out there, so, learn how to avoid these bad guys. Besides that, it’s good to have some clear goals for yourself. Planning to do a one time trade only, a long-term investment, or several trades during this year? Are you going to invest fiat (like dollar, euro, or ringgit), or exchange crypto for crypto? Which cryptocurrency do you want to purchase? Make sure to have these questions answered for yourself. It will help you find the best exchange.
Start checking the rules and laws about cryptocurrencies in your own country. Regulation differs from country to country. And, make sure the exchange you pick is (legally) operating in your country. Besides local regulation, each and every exchange has its own protocols, like customer identification.
Exchanges with higher trading volumes generally have higher liquidity, which means they are more likely to meet all buy and sell orders. Unhappily, a big issue with trading volume is wash trading. Learn more about that in this blog article. At the moment, we are creating measures against fake volumes, like price and volume algorithms that will separate fake from real volumes.
Every exchange has its own protocols and requirements. Usually, the harder it is to create an account, the safer the exchange is. If it’s easy to do, it could imply that an exchange is not very secure. Exchanges should have sufficient security measures such as multi-signature access. Also, certain exchanges have funds in place to compensate customers under specific circumstances, like in case your coins suddenly disappeared. It might also be easier to track down and retrieve your coins when trading on a secured exchange.
Most exchanges charge a fee for each trade. These are generally based on the size of the transaction, but it could also be based on your trading activity, or it might be a fixed fee. It’s worth looking into these fees, considering how many trades you’re about to do, and of which size.
We, at Coinranking, value a clear and attractive interface, which enlarges the usability of our platform. This also applies to the websites of exchanges; pick an exchange that has a clear interface, without unnecessary and dazzling information, charts, images, etc. Further, good customer support could also be of great importance. Check out if exchanges are available in your language and if you can easily get support if you have any questions.
All of the above are coming together in an exchange’s reputation. Reputation is very meaningful and influential in the crypto community and because it’s a very active community, it wouldn’t be too hard to do your research. Ask other users on forums and social media for their experiences; Reddit, Telegram, and Google Reviews are perfect for getting honest opinions.
To put it briefly, do your research and be cautious! Find all exchanges on Coinranking.
Lastly, remember to enjoy the exciting world of cryptocurrencies. And have a good time in the welcoming crypto communities. 😄