If you have decided to jump onto the crypto bandwagon, you are going to need the services of a good crypto exchange that can help you in buying and selling these digital currencies. Considering the hype surrounding cryptocurrencies and their huge demand, the number of these exchanges has increased substantially. However, this doesn’t mean that all exchanges are created equal and offer you the same level of services. Obviously, you would want to have the best cryptocurrency exchange, but what qualities should you look for?
Listed below are some of the things that you should look for in the best cryptocurrency exchange for your trading needs:
It is understood that you would want to choose a trustworthy cryptocurrency exchange, where you can safely make your purchases, or sell your digital assets. This means that the value of your trades shouldn’t diminish significantly. Yes, the exchange will have its own fee, but it shouldn’t be so high that it eats into your profits.
The crypto trading platform you decide to use should also be secure. This means that your digital assets shouldn’t be exposed to the dangers of hacking, theft or being divulged to third parties. Since this has happened on some crypto exchanges, it is a genuine concern for people to have and you want an exchange that minimizes these risks as much as possible.
Properly licensed and regulated
Perhaps, the most prominent feature of the best crypto exchange is its proper licensing and regulation. This means that it should be recognized as a legal entity where it is operating and is under the regulation of the financial authority in that country. This makes the platform genuine and ensures that you are not using an illegal or fake platform, which can also put you at risk.
As cryptocurrency trading is relatively a new concept, you should prioritize a cryptocurrency exchange that keeps its fees and charges transparent and is upfront about all costs. You definitely do not want any nasty surprises later on because they will have a direct impact on your bottom line. It can be extremely frustrating to find out later on that there are additional charges involved and this will increase your trading costs and minimize your returns. Moreover, you should remember that a crypto exchange that is not transparent about its services and fees may have something to hide. Therefore, you should opt for an exchange that’s upfront and honest about everything and doesn’t try to mislead you in any way.
Since you are a newbie and want to have a smooth crypto trading experience, it is best to look for a crypto exchange that’s user-friendly. When you are just starting out, you don’t want to spend a lot of time trying to learn the ropes of the exchange itself. You want to start trading right away, so you don’t miss out on any opportunities that might be available in the market. There are several exchanges that do offer a simple trading platform that is designed for beginners and can help them have a smooth and easy trading experience.
While this may not strictly be a requirement for the best cryptocurrency exchange, opting for one that’s popular and widely used can certainly work in your favor. It will ensure that you can find help if you need any, or getting information about the exchange and its various procedures will not be that difficult. Furthermore, the popularity of the trading platform is an indication that it is reliable and provides quality services due to which it is a favorite.
Compliance with KYC and AML policies
KYC (Know-Your-Customer) and AML (Anti-Money Laundering) are two of the most renowned security policies. Any cryptocurrency exchange that complies with them is able to provide its clients with a safe trading environment and is regarded as genuine because it mitigates a number of risks. Thus, when you are searching for the best cryptocurrency exchange, don’t forget to check whether it is compliant with these policies or not.
Sorting through the numerous exchanges by looking for these qualities will help you in choosing the best cryptocurrency exchange for starting your trading journey.