Trading cryptocurrency has come a long way in the last 15 years. Long gone are the days when you had to go through a long, complicated, and unreliable process to purchase any coins. With bitcoin and other cryptocurrencies growing in popularity, trading has become easier and a lot more secure. Most trades are now done through an exchange, of which there are many. This article aims to give you some tips on what to look for in the best cryptocurrency exchanges.
Ease Of Use
The first thing you’re going to want to know is how easy is the exchange to use. If you are new to trading it can be hard enough to understand what you are supposed to do without also having to deal with a complicated user interface and a hard-to-decipher process. Trying to find the best place to purchase bitcoin can be challenging when there are so many competing companies. Generally speaking, the most popular one will be the one that is easiest to use. Unless you have some prior technical expertise, pick the one that seems most user-friendly and has dedicated support. When looking for the best cryptocurrency exchange you should prioritize its ease of use.
The next thing that you should consider is transaction fees. Given the rise in exchanges, transaction fees have had to become more competitive. Often, ease of use may have a trade-off with transaction fees. The websites that need to be less hands-on with their users will have lower running costs and so will be able to offer more competitive transaction fee rates. Deciding on what is an acceptable percentage loss to make on each transaction is up to you, but will probably depend on how often you think you will trade. If you are planning on just buying up one coin and then sitting on it, you won’t need to worry about transaction fees that much. However, if you plan to trade between different currencies and play the market, then you may want to consider a lower rate.
What Cryptocurrencies Are Available?
Different exchanges offer the ability to trade in different currencies. If you have a clear idea of what you want to trade in then you just need to find an exchange that offers you that currency. If you are planning on trading cryptocurrencies like Bitcoin, which are very popular, you won’t have any trouble finding an exchange for yourself. However, if you are wanting to play some penny-stock-style cryptocurrencies in the hope that they jump up in value then you might need to find an exchange that tends to adopt newer currencies. Finding out which cryptocurrencies are available on an exchange is a good way to find out if it is the best one for you.
An interesting feature of some bigger exchanges is that you can copy other investors’ trades. This concept was introduced for new traders who don’t have time to watch the markets all day and want to be able to follow the advice of an investor who seems to know what they are doing. By copying a trader, you are essentially putting your portfolio in their hands which is not without its risks. However, being able to utilize this feature for those of you who are new to stock trading is handy. Investigating what bonus features an exchange offers its customers is an important thing to consider when picking which you would like to trade with.
Is It Regulated?
A common concern with cryptocurrency trading is that the money is unregulated. This can leave traders open to scams by chancers creating fake cryptocurrencies. Most of the bigger exchanges will offer their customers a certain amount of protection, similar to the way that a bank offers protection on your savings accounts. If you are concerned about the risks of trading in exchange, make sure you choose one that is officially regulated and offers some customer protection for your funds.
Is It Secure?
Making sure an exchange is regulated is one thing but you are also going to want to know that your account is properly secure. Given how much cryptocurrency trading is worth these days and how much money people can have sat in their accounts, hackers will try to gain access any way they can. Although it might seem like an annoyance to have a few extra steps added into the login process, the additional security is really worth it. What you want to be looking for are sites that offer two-factor authentication. This is where your account is linked to your phone or email separately. What will happen when you log in with your password, is that you will also have to enter a code that is sent to your phone or email. This is two-factor as you need to have access to your phone or email as well as having the correct password for the account. Picking an exchange with two-factor authentication is a really smart move.
Changes For Exchanges
These days it can feel like everyone does a little bit of cryptocurrency trading on the side. Understandably, more and more people want to get in on the action. The potential gains are huge and the concept has held strong for the last 10 years, despite wild fluctuations in price. If you are thinking of getting starting, picking a good exchange is an important first step. The things you should consider before deciding are; ease of use, transaction fees, which currencies are available, the ability to copy other traders’ trades, whether it is regulated and whether or not it is secure. You might also want to consider whether or not it seems like the exchanges are moving with the times and regularly updating their systems. If you are going to start investing in a website you want to be assured that they are going to keep up with the market. It is still early days for cryptocurrency trading and developments are being made all the time. By following this article you should be able to set yourself up for success in the cryptocurrency trading world.
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