1. Security
This is one of the most important factors to look out for. Do your research and ensure you select only platforms with mechanisms in place to protect you from fraud. How can you make the difference between a dodgy exchange and a serious one? A reliable platform has a secure website (i.e., its URL will start with HTPPS) to ensure encrypted communication. It will also offer security features like:
- Strong encryption
- Two-factor authentication (2FA, username, and password plus a piece of information only you have)
- Cold storage (i.e., offline storage)
2. Fees
Cryptocurrency exchange fees may vary greatly. Make sure you compare them.
Tip: Usually, exchanges using tokens are the ones offering the cheaper fees, some others offer discounts or commission-free trading. Don’t forget to keep an eye on withdrawal fees.
3. Availability
Check your country’s regulations to verify if you are allowed to use the exchange you are interested in. Did you decide to opt for an international exchange?
- Make sure you choose one with good customer service
- Keep an eye on regulatory changes in case it becomes illegal in your country to trade with that specific exchange
4. Get to know the different types of trading platforms available
Before choosing one, get familiar with the three types of crypto exchanges:
- Brokers: The forex brokers of crypto set prices, while buyers can use their platform to purchase cryptocurrencies.
- P2P exchanges: They connect buyers and sellers so that they can directly interact and agree on transactions. They provide a secure system for crypto exchange.
- Trading platforms: Where the sellers place their cryptocurrencies, and buyers place their orders. Platforms usually charge a transaction fee.
5. Purchase methods
There are several purchase methods, depending on exchanges. Some platforms require bank transfers or crypto, others prefer PayPal. Some also accept debit and credit card transactions.
Tip: No matter what you choose, try to find out how long it takes to complete a purchase. You don’t want to end up waiting for days or weeks for your transaction to complete.
6. User experience
Are you trading for the first time? This is another key aspect to look for before selecting an exchange. Look for platforms with an intuitive interface, that also works on mobile. The easier it is to use, the easier it will be for you to make transactions and manage your stock. If anonymity is important to you, don’t choose an exchange that requires you to reveal too much about your identity. Shop around, and pick the interface for you. Before making your choice, check:
- Customer feedback
- Reviews
- Community forums like Bitcoin Reddit or Bitcoin Forum
7. Supported tokens
Exchanges usually support a great variety of currencies that you can trade with. Are you new to trading? Keep it simple. Pick popular currencies Like Bitcoin or Ethereum, and don’t go for more than three.
There you have it! These are our 2 cents to help you get started to invest in crypto.
Because considering different factors and being aware of the peculiarities of the several trading platforms available is essential. Know your options, pay attention to the pros and cons of each exchange and choose wisely.
Don’t hesitate to sign-up with different exchanges, try them, evaluate them and then stick with the ones you prefer. But above all, make sure you pick those that are safe, reliable, and secure, like your Friendly Crypto Exchange IXFI.
Ready to invest in crypto? Join IXFI and start your safe, rewarding trading experience now!
Hungry for more exciting cryptocurrency information? Do not miss our new articles, only on our blog.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
