If you’re new to crypto or have been around the block a few times, knowing what to look for in a cryptocurrency exchange is essential. There are numerous ways for things to go wrong, so you should always look for potential problems.
On the other hand, one thing that bothers most people is if the exchange has mobile apps. Some are concerned about how functional the support system is. As a matter of fact, there are different issues with some exchange platforms, so it’s advisable to consider the best crypto exchange Reddit users recommend the most.
However, before you choose an exchange platform, check for these things:
First and foremost, you must ensure the exchange is user-friendly. A good cryptocurrency exchange must be easy-to-use, simple, and intuitive. If you’re not comfortable with the user interface, it won’t be easy to use them.
A good rule of thumb is that if an exchange doesn’t have a simple UI (user interface), it’s probably not worth investing in.
- App Availability On Mobile Devices
The best cryptocurrency exchanges offer native mobile apps, and that’s because mobile is king. Mobile apps allow you to access your account from anywhere with internet access. This also reduces the use of computers to check your portfolio or place an order.
Furthermore, being on mobile devices means that hackers can’t access your personal information. If they enter the exchange’s system, they’ll only get what’s stored on their device. The usability of these apps varies widely depending on how big each company thinks its user base will be.
Meanwhile, some companies focus more on ensuring their website works well than on their mobile app. However, you should consider both when choosing which one appeals most favorably to your needs.
In addition, you may even want to consider one that allows trading bots. Some users claim Pionex is highly respected in this niche, as it effectively manages your portfolio if you like diversifying your crypto investments.
Your exchange should have a secure website. You don’t want to be trading on a site that doesn’t look secure or has had some breach in its security system.
Look for a green padlock in your browser’s address bar and ensure that it’s certified with a secure sockets layer (SSL). Moreover, if they’re not using hypertext transfer protocol secure (HTTPS) encryption or if a security certificate doesn’t verify them, there’s no way that you can trust them with your money.
In fact, some exchanges allow you to see which third parties are analyzing their site for vulnerabilities. This will give you an indication of how secure it is before you do business with them.
On the other hand, when looking into different exchanges and wallets, consider their security measures and behind-the-scenes technology. Also, ensure your wallet type is backed up by solid encryption methods to protect your funds effectively.
- Transaction Limits And Fees
If you’re going to trust a cryptocurrency exchange with your money, it should have reasonable transaction limits and fees. A good exchange will want to protect your funds as much as you do, so they won’t let you send large amounts of money without some verification process.
Furthermore, they also shouldn’t charge unreasonable fees for small transactions. The transaction limits and fees need to be clearly explained on the website.
- High Liquidity
High liquidity means you can buy or sell your digital coins quickly, which is vital for investors and traders. Investors need to be able to buy or sell their cryptocurrency to meet trader demands.
Meanwhile, there’ll be less trading volume without high liquidity as it’s difficult for investors to provide depth in markets that aren’t liquid enough. This would also mean lower prices for everyone.
Moreover, traders benefit from high liquidity because they can buy or sell in smaller quantities without moving the market too much (thus potentially missing out on profits).
- Support For Major Currencies
The number of cryptocurrencies available on a given exchange can indicate that exchange’s popularity. The more digital coins you can trade, the greater your chances of success, especially if the coins are valuable.
- Accessibility For Multiple Platforms And Devices
If you use a cryptocurrency exchange, the platform must be accessible anywhere. Being locked out of your account because of poor user experience, absence of your smartphone, or support issues is the last thing you want.
You’ll also want to see that the exchange supports multiple platforms and devices. This way, you can use any device that suits you at any given moment: desktop computers, mobile phones or tablets, and any other.
Another thing, it would be best to consider how effective their customer support system is. With the checklist of user-friendliness, security, transaction fees, limits, and many others, you can decide which exchange platform is the best for you. It’s essential to find an exchange with digital currencies that aligns with your goals and trading style.