Since the inception of cryptocurrencies, many exchanges have emerged across the globe. With many parties out there, it becomes harder to determine which parties offer attractive fees and a secure system. Especially since the collapse (and loss of funds) of Mt. Gox, many people care about the safety of the exchange they use. Comparing exchanges, therefore, is not just limited to the fees but also other aspects. Many websites, including this one, help users to get an understanding of the exchange. In this article, we will look at what factors to look at and how a crypto tracker is looking to advise users as well.
What are important elements to select an exchange?
For many users, transaction fees are still an important aspect of trading. The other factors that are often considered are listed below.
Location of the exchange
The protection of traders differs per country and region. While an exchange in Japan can have appealing transaction fees, it has limited protection in case something goes wrong. This has become evident with Mt. Gox. Therefore, traders could consider exchanges that are in their country of origin, allowing them additional protection and
Availability of coins
While there might be exchanges with attractive fees and strong protection, they might not offer the coins you want. Especially with coins that have a low market cap, compatibility is low. This often requires you to transfer the coins (e.g., Bitcoin) to a wallet and then transact them for the coins you prefer. Exchanges are slowly adding more coins to their assortment, and this forms a foundation for traders to select the exchange.
Recommendations and user reviews
Still, a majority of traders select an exchange that is being recommended by friends and family. This forms the foundation of their decision. Next to that, they will research user recommendations on the Internet. Crypto Wisser is such a website that provides a good overview of exchanges to choose from.
How a crypto tracker can help make a decision
Trackers allow you to have a complete view of your portfolio. You can have a view of all your holdings, across exchanges. Over three hundred exchanges are supported and can be easily connected to. When you want to conduct a transaction, you can simply select the coin and you will get insight into the respective transaction fees of the exchanges. This simplifies the process as you can initiate the transaction and can get the best recommendations for the transaction. More crypto trackers are entering the stage and supporting this type of comparison.
Learn more about crypto and the stock market trackers
Interested in how such a tracker can help you? By researching the options available, you can select a tracker based on your individual needs. These can differ based on your preferences (e.g., usability) but also on your holdings (e.g., crypto-only or crypto and traditional assets). If you are active across financial instruments, advanced trackers can be of particular help to you.
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