How to choose your Exchange

In this chapter, we will be looking at exchanges to help you determine which one is better for you. You can visit this link to see the list of most exchanges.

Things to keep in mind when you are going to choose your exchange.

Reputation

choose your exchange

The best way until now to find out about an exchange is to search online for its Reputation. From individual users to well-known industry, any review is crucial. You can even interact with people if you have any questions on Reddit or BitcoinTalk.

Our Discord can be a great place to discover and talk about exchanges.

Location & Restrictions

exchange rates

One of the most critical factors when it comes to selecting a cryptocurrency exchange might be its location and the restriction applied from it. First, make sure that the cryptocurrency exchange is accessible and legal from your country.

Volume & Liquidity

cryptocurrency exchange

A large volume of trading is a good indicator. Volume often brings more liquidity to an exchange, which makes trading simpler and less risky. It will also impact your ability to buy or sell any of your assets if your balance is relatively important.

However, if you are looking into the best volume exchange & liquidity, you might find exchanges that are using wash trading to artificially increase their volume, and reach the top of the exchange ranking.

To avoid that, always check the Reputation online, visit the exchange, and draw your conclusions.

Fees

cryptocurrency lesson

Most exchanges, if not all, will not ask you for any fees when you deposit on their platform. However, they will charge you fees for trading and withdrawals.

You can find fee-related information on their website, so before joining any exchange, make sure that you understand and agree with their terms.

Moreover, most exchanges offer a reduction of fees if you sign up with a referral link, so do not hesitate to use our links if you like our content.

Last but not least, some exchanges also use their Exchange Currency, and offer a reduction of trading fees if you own some of their coins.

Security

bitcoin storage

When it comes to your wealth and investments, you should always look for the most secure option. Considering the exchanges you should trade on, you must try to find the one which as a good track record. If the exchange dealt with compromised security in the right way, it must attract your attention. Nowadays, crypto exchanges being hacked are common. However, some are managing better the funds of their users, and you should prioritize them.

Find here a list of all the cryptocurrency hacks and how it impacted their user’s experience.

You must also make sure that your exchange has the 2FA enabled, and a secure captcha. The more an exchange has security layers, the more you can trust it.

Privacy/Verification Requirements

bitcoin

Unless you chose a decentralized exchange, most of the serious platforms would ask you to provide them with an I.D. The process is known as Know-Your-Customer (KYC) verification.

Cryptocurrency is starting to gain some audience. Thus, Financial Authorities are now forcing exchanges customers to verify their account by providing documentation to confirm their identity. However, some exchanges can allow trading on their platform until you need to withdraw a specific threshold.

If you are a U.S. or U.K. citizen, some exchanges might require you to verify your I.D. to make deposits and withdrawals.

Supported Assets

altcoins

The exchange that you will choose must have the coins you want to buy. On Coinmarketcap, you can see the list of assets each exchange supports, and the pairs available.

Moreover, regarding the goal you have by choosing your exchange, having a big amount of assets to trade can give you more opportunities to have.

Customer Support

otc trading

Customer support is a crucial factor in evaluating your future cryptocurrency exchange. Any issue can happen; it can happen that for security reasons, you are not able to connect on the exchange or withdraw any funds. Even if you have some questions because some features are confusing, or because you are a novice, the customer support should be able to help you.

An exchange with responsive and friendly support is to prioritize and will save you a lot of time and anxiousness.