Top 6 Things to Look for in a Crypto Exchange Platform

Guest  |  Nov 16, 2021

The popularity of cryptocurrencies has skyrocketed, and it is expected to keep growing. More cryptocurrency exchange platforms are being developed daily to cater to the growing numbers of crypto investors. With so many platforms to choose from, it makes picking the right exchange platform quite a task.

In addition, the platforms all come with different features and offerings, which complicates your choice even more. If you want to find the best crypto exchange platform, there are some features you can’t compromise on. This article helps you break down the top six important things to look for in a crypto exchange platform.

Crypto Selection

The first thing to look for in an exchange platform is their crypto selection range. This is the number of currencies and the particular currencies the platform is offering. Some exchange platforms offer only a few, while some offer hundreds of currencies. However, consider a platform offering you the most popular currencies that you can easily trade if you’re just starting.

Choosing a platform with so many coins that you don’t understand can make it more complicated for you. However, if you’ve been around cryptocurrencies for a while, you might consider a platform that has a bigger offering, including the new entrants. This way, you can be among the early investors into a new coin.

Solid Reputation

Because the cryptocurrency environment is relatively new, with numerous platforms coming up every other day. It’s crucial to know whom you’re entrusting your funds with. Many platforms have been mentioned alongside fraudulent activities, scams, and hacks, leaving investors counting losses.

If you’re new and trying to understand what is blockchain wallet and what it’s got to do with trading, research into the reputation of crypto trading platforms can help separate the good from the bad. Go through the websites, user reviews, social media, and gather as much information as you need to make an educated decision.

Privacy and Security

The crypto market remains largely without regulations from a particular government, making it a good place for scams. You need to scrutinize a platform’s security practices to ensure that you’re not getting into a place where you can lose your investment. Every cryptocurrency exchange development platform takes a different approach when developing security features for these platforms.

There are numerous reports of hacked crypto exchange platforms where investors have lost considerable money in the form of cryptocurrencies. Look for a platform that takes the security of its users seriously. This includes having features such as encryption, two-factor authentication, cold storage to protect investors’ funds from online threats.

Transaction fees

Hopefully, as competition continues to grow, the fees charged by crypto exchanges can become standardized across all platforms. This is because crypto exchange platform fees vary quite considerably from one exchange to another. Some offer quite affordable rates, while others are relatively pricey.

Some offer discounted rates as well, but this is when a platform has its own token to complete transactions. Other platforms base their fee structure on sales and making purchases free. Also, check if a platform charges deposits and withdrawals.

Crypto wallets

It’s not in all platforms that you’ll find wallets for storing your cryptocurrencies. But a platform where you can hold your cryptos and trade on the same platform can offer a lot of conveniences, particularly if you’re a new trader. However, if you’re holding large amounts of coins, you may want to look at cold wallets such as the Ethereum offline wallet that are more secure.

Customer Support

You may not think this is important until you have an issue that needs clarification and no one to help you. Unfortunately, crypto exchange platforms don’t always offer the best customer support. However, anything can go wrong with your account, making you need help from the platform.

Check what other users are saying about a platform to ensure that someone will help you at your hour of need. If you bump into a platform that scores high on customer service in your search, that’s a keeper. Your trading experience is in good hands.

Summing Up

Investing in cryptocurrencies can be risky but yet rewarding if you find the right places to trade. Ensure you do your homework so that you don’t end up in a platform that doesn’t support your investment goals, or worse, lose your funds to scammers.

 

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