Since the introduction of digital currencies, the number of exchange platforms open to the prospector and trader has dramatically increased. But with so many platforms available, how to know which one to choose? In this guide, we will guide you through the important aspects to look out for before you choose a digital currency exchange platform.
Security: More than anything, security should be the number one factor when picking an exchange. Seek for platforms utilizing top-notch security features, including two-factor authentication, cold storage and encryption to secure your assets.
Fees: Fees can differ a lot from one exchange to another, so be sure to look at the costs for trading, deposit, and withdrawal. Some exchanges provide low fees for big trading volumes, while others will charge a flat fee for each transaction.
Supported Assets: Not all exchanges are created equal when it comes to supported assets, so ensure that the exchange you choose allows you to trade the assets you want. Certain exchanges carry a broad selection of altcoins, but others might just host the big currencies such as BTC and ETH.
User Experience/UI: The user interface determines how well you will be able to trade. Make sure to get a platform with a simple design for navigation and valuable insights into your trades and portfolio.
Regulation: Investigate the exchange’s regulatory environment. These regulated platforms may provide a higher level of investor protection at the cost of more stringent kyc requirements.
Customer Support: Ensure that the exchange provides relevant customer support in the event you encounter any issues. Make sure to check if they provide 24/7 support and through what channels — live chat, email, or phone.
Liquidity: For traders who want to enter and exit positions in real time, liquidity is vital. Choose exchanges that offer high trading volumes and narrow bid-ask spreads.
Taking these factors into consideration will allow you to select a digital currency exchange platform, which suits your needs and will help you reach your goals when trading.