When deciding what cryptocurrency exchange is best for you, consider some things. Of course, these aspects vary depending on the level of trader you are, and some exchanges cater more towards beginners. In contrast, others are better suited for high-volume traders.
Every cryptocurrency exchange is functioning differently. The coins are different. Even the broker’s fees are also different. Every day you will see a new type of currency is popping out. But how many of the new cryptos can stay in the market? Very few can stay in the market for a longer time.
How To Find The Best Cryptocurrency Exchange
The cryptocurrency market is full of innovation and competition. New, more efficient altcoins are popping up every day while existing cryptocurrencies are constantly improving.
It means that exchanges have to keep up with the market by offering more innovative services and lower costs to remain competitive. Because of this, many new cryptocurrency exchanges through exchanging platforms are also popping up around the world.
Here are five factors that you need to check for selecting the market best cryptocurrency exchange.
1. Trading Fees
When deciding on a cryptocurrency exchange, it is essential to look at the fees associated with trading there. Most exchanges charge a flat rate of 0.20 – 0.25% per trade, but some also charge additional fees based on payment method.
For example, Bitfinex charges different rates for wire transfers compared to cryptocurrencies for deposits and withdrawals. As a result, Bitfinex charges less than 0.1% per trade when using cryptocurrencies but costs more than 1% when using fiat money.
2. Payment Method For Fund Withdrawing
It is also important to look at the available payment methods for withdrawing your funds from the cryptocurrency exchange. Some exchanges only allow cryptocurrency withdrawals, while others will enable you to withdraw fiat money as well. Suppose you plan to remove your cryptocurrency back to your wallet. In that case, you will need to transfer your currency from the exchange first and make sure that the receiving address is valid.
Suppose you attempt to withdraw specific cryptocurrencies from an exchange to a wallet address for an unsupported currency; in that case, there is a good chance that the transaction will fail, and you will lose those funds.
3. Types Of Crypto Currencies Supported By Exchange
One of the most important things to consider when choosing a cryptocurrency exchange is supported cryptocurrencies. Some exchanges only support significant cryptocurrencies like Bitcoin and Ethereum, while others offer support for an enormous number of altcoins. If you plan on trading lesser-known altcoins, it may be wise to use an exchange that supports a large variety of currencies.
4. Security Level For Transaction
An additional thing to consider when choosing an exchange is the level of security offered. For example, some exchanges provide 2-factor authentication for all withdrawals, while others do not. It is also essential to look at what security protocols are in place to prevent attackers from accessing your funds stored on the exchange.
Several well-known cryptocurrency exchanges have large numbers of daily users. Still, it is important to decide what criteria are most important. For example, perhaps the most prominent exchanges charge competitive rates for trades and withdrawals. Still, they have faced controversy recently due to large-scale hacks.
5. Exchange’s Liquidity Measurements
Many traders will opt for using a decentralized cryptocurrency exchange like Binance or EtherDelta. It means that they can avoid some of the issues associated with centralized exchanges but cannot make fiat money deposits. However, these exchanges also do not offer high liquidity with centralized exchanges.
According to the experts at SoFi, you can “Get up to 15.01% of cash backfile from local establishments. When you pay through the SoFi debit card.” So if you want to open an online bank account with SoFi, contact them today.
Selecting the best cryptocurrency exchange from the thousand choices is challenging work. But when you are well aware of the checking factors, you can easily choose your desired cryptocurrency exchange. Follow these five tips and pick the best-performing cryptocurrency exchange with a solid security system.