There are many emerging cryptocurrency exchanges that claim to offer better services than others. The process of selecting the best cryptocurrency exchange can be daunting for both newbies and experienced traders. Here are some guidelines to help you find the best crypto exchange in no time.
1 – Supported Cryptocurrencies
The first thing to look at while searching for the best crypto exchange is how many cryptocurrencies like gigecoin crypto it supports. A lot of hot and upcoming coins cannot be traded on most platforms as they do not support them yet. If a large number of currencies are supported, then that platform is probably safe and secure as well as easy to use for first-timers. Another good indicator of a safe platform is whether it has a mobile app or not.
2 – Exchange Rate Fees
Most crypto exchanges like fxcm charge fees on either deposits or withdrawals or both. The exchange rate fee is the one that you have to keep an eye out for while finding best crypto exchange. It is usually charged in addition to mining fees. In most cases, these rates are expressed as a percentage of the deposit or withdrawal amount. You will also come across platforms that do not display their exchange rate fee upfront and only share this information via email after signing up with them. Be sure to avoid such exchanges at all costs! Exchanges with low rates are the ones you should be looking forward to joining hands with. In some cases, even certain banks may charge high transaction fees.
3 – Security and Customer Support
For a platform to be considered secure, it must not only have a strong password policy but also offer two-factor authentication. This ensures that users’ accounts remain protected from cyber attacks at all times. Moreover, customer support is also crucial as users might need assistance on some issues related to the platform. If the helpdesk takes too long to respond or does not answer your queries on time, then you should look for another cryptocurrency exchange. Do remember that if the company cannot handle simple customer queries even on social media like Twitter or Reddit then how can it ever attend to your requests regarding more serious matters?
4 – Liquidity of Coins
While checking out best crypto exchange, make sure the coin you are trading in is liquid enough. If you have ever read the fxcm review then you should know how liquidate they are. In other words, check whether a lot of users are looking to buy or sell that particular coin on that exchange. If there is a high demand for a certain currency then it will be easier for you to buy or sell that coin at any given time. On the contrary, if the market for a currency is entirely inactive, then exchanging it would not be possible unless and until somebody wants to trade in your chosen currency at an unreasonable price.
5 – Exchange Rate Volatility
Yet another important factor to consider while finding best crypto exchange is how volatile the prices of coins are on each platform. Remember that even if cryptocurrency rates change dramatically within minutes, you always opt for platforms with only minor price fluctuations. You should not sign up for a platform that offers highly volatile rates as it increases the risk of huge losses for traders. The reason behind such fluctuations is usually due to lack of liquidity and smaller volumes traded on certain platforms.
6 – Trading Fees
After checking out exchange rates, you must also check the trading fees charged by different exchanges. For example, if a platform charges high withdrawal/deposit fees but offers low trading fees then it would be suitable for fxcm traders. On the other hand, if running costs are too high or there is no fee structure mentioned on the company website then stay away from that particular platform as they may charge exorbitant transaction fees without your knowledge. Although crypto exchanges like coinbase do not charge any trading fee, I read their tutorial to find out how easy it was to withdraw coins . This should give an idea of whether their trading commission sucks or not.
7 – Regional Sectors
While searching best crypto exchange, consider your country’s sector as well. For example, if you are living in the US then it would be wise to find a platform that supports more US-based cryptocurrency assets. The more countries an exchange caters to, the better it is for traders. That being said, some exchanges may also have certain restrictions on certain regions so make sure you read about them before signing up.
8 – Community Trust
Last but not least, check the community trust of any company before joining hands with them. Most importantly, consider whether they are regulated or not since customers’ funds might get stuck in case of insolvency without any customer protection or recourse against such events. Moreover, even if they claim to be regulated by some authority do not forget to verify this information with the concerned authority.