Choosing a cryptocurrency exchange (Topic)

Anyone planning to plunge into the vast ocean of digital currencies will have to face the problem of choosing a cryptocurrency exchange.

Without such trading platforms, it is impossible to exchange fiat currencies for digital, or rare altcoins for more popular currencies. There are many similar sites on the Internet, each of them has advantages and disadvantages.

What characterizes the exchange?

Miners and traders usually do not limit their choice to just one cryptocurrency exchange. One trading platform can be used for operations with highly liquid coins, on the second it is better to trade risky assets, the third is profitable for long-term investments.

The main characteristics of each exchange are:

• number of cryptocurrency pairs to exchange;
• convenience and simplicity of the interface;
• availability of additional functions and tools;
• speed of adding new cryptocurrencies;
• security level.

In any case, trusting his money to a cryptocurrency exchange, the owner gives it to a third party for safekeeping.

Therefore, the reputation and reliability of the site, the level of security must come to the fore. Decentralized crypto exchanges are just starting to emerge. They differ from traditional trading platforms in that the user has complete control over his funds, since he owns the private key to the wallet.

How to choose a cryptocurrency exchange?

The choice depends purely on individual preferences, but there are some basic criteria that you should pay special attention to:

Reputation. Before sending cryptocurrency to the wallets of an unfamiliar site, you should read all available information about it. The forums Reddit and Bitcointalk.

Commission. Each transaction to buy or sell cryptocurrency is subject to a commission in favor of the exchange. It differs from site to site, but the average is 0.2 percent .

Commission for deposit / withdrawal of funds. A crypto-exchange with low commissions per transaction can take completely "draconian" interest for withdrawing funds from their accounts. Deposit is usually not subject to commission, but the most greedy owners of trading floors take money for this operation.

Number of trading pairs. For some users, quantity is important, for others - quality. Here, the choice is purely individual, but the more pairs, the easier it is to trade.

Liquidity. In other words, the ability to sell cryptocurrency at any time. This indicator is directly affected by the daily trading volume of the exchange. The higher the liquidity, the easier it is to sell or purchase cryptocurrency.

Additional functions. These may include a variety of ways to fund your account and withdraw earned funds, as well as tools for analyzing cryptocurrency rates.

Verification method. Some cryptocurrency exchanges have a rather complicated verification procedure and very strict requirements for new users. This is famous for Kraken and the American Bittrex , which has not registered new accounts for the past six months.

Less important parameters

Other parameters include the location of the site (some Asian exchanges do not register users from other countries), the presence of a USA-language interface, the ability to exchange in pairs with the ruble, the ability to withdraw to USA bank cards, the presence of transaction statistics and other useful little things. Perhaps only exmo.me

The Topic of Article: Choosing a cryptocurrency exchange.
Author: Jake Pinkman