While the market has slowed a little bit from it’s outstanding start to 2018, the cryptocurrency market still has a total market cap of and was among the fastest growing industries of 2017. However, with only a actually investing in crypto, there is obviously some apprehension among the public.
Generally, it comes down to a lack of knowledge in the space. One of the biggest questions that people new to the industry have, is “what exchange should I use?” There are dozens of cryptocurrency exchanges out there. Many of which seem to offer the same (or similar) experience, so the choice isn’t an easy one. With that in mind, this article is going to look at a few tips to find the best cryptocurrency exchange for your needs.
Know the Reputation and Reliability of the Exchange
One of the most important factors in finding the best crypto exchange is to find out the reputation of each exchange, and how reliable they are. The exchange you go with should be one that has stood up to potential hacks and has protected the funds of their users. You should also try and find out the security measures each exchange has in place, and how the team would solve a security issue.
Unfortunately, nearly every exchange can claim they are the best and offer the best features. You should be researching and reading online reviews and guides from a variety of resources, starting with , to see the experience of others who have used these various platforms and exchanges.
Look at What Currencies the Exchange Offers
While Bitcoin is by far the most popular cryptocurrency asset out there, it is far from the only one. There are hundreds of different currencies that you can invest in, but not every exchange will offer them all. Generally, there are two types of platforms when it comes to the currencies they exchange. Many exchanges that offer fewer choices will often offer fiat money, which can be beneficial for newcomers.
Exchanges that offer dozens of currencies will generally require you own Bitcoin or Ethereum to exchange for the more rare currencies. Ultimately, choose an exchange that features the coin or coins you’re interested in investing.
Know the Fees and Commissions They Charge
No matter which exchange you work with, there is a good chance you will be hit with some fees. Now, every exchange has different fees for things like withdrawing, trading, and depositing. Most exchanges will publically list their fees on their website. So, they shouldn’t be tough to find.
While some feature static commissions/fees per transaction or per withdrawal, others will feature dynamic fees which will change depending on the currency you invest in and how much you are purchasing. When looking for an exchange, your goal should be to pay the least amount of fees as possible, while still working with a reliable and reputable platform.
Be Aware of the Verification Requirements
In general, you will be required to verify your identity in some way before investing in an exchange. Each exchange will have their own requirements and response times, and these could factor into your decision.
Verifications normally takes a few days to be approved and usually involve sending some sort of photo ID to the exchange, as well as a photo of yourself and potentially a unique ID code provided to you. While it can be annoying to wait the few days (or longer), this verification helps to protect the exchange from scams and other potential issues. Some exchanges do allow people to stay anonymous, but those exchanges usually have more restrictions.
Hopefully this article has helped you to find the best cryptocurrency exchange. There are, of course, some other things to look for such as payment methods and trading volumes. However, we feel as if the four guidelines mentioned are among the most important to watch for.