Cryptocurrency trading exchanges facilitate investors in buying or selling one digital currency for another. Serving as an intermediary, using these platforms, traders can take the benefit of exchanging cryptocurrencies for another or use fiat currencies to buy them as well,
With the emerging numbers of these intermediaries, determining the best cryptocurrency exchanges is what determines the profitability of the trade, among other essential factors.
As every crypto platform may vary depending on various aspects like security measures, features, and more, verifying the compatibility of the platform to your specific requirements is crucial.
Different sorts of trading exchanges in crypto trading
Peer to peer
For traders who prioritize security and privacy above any other features, opting for P2P or peer-to-peer exchanges would be beneficial. These platforms enable traders to directly communicate with one another where they can determine the price along with the preferred payment method to conduct the trade.
While some of these platforms assist you in locating other traders, others come with the features of escrow services and acting as an arbitrator. Although these platforms guarantee your privacy to an elevated level, the responsibility of your funds in terms of security majorly depends on you in this case.
Ideal for novice traders, this type of exchange provides traders with rather a direct approach of trading where they can initiate a transaction instantly from the platform itself. As a trader, you are required to submit certain documentation in order to verify the account before initiating a trade.
Full trading platform
This type of platform uses a booked order to connect with suitable buy or sell orders where a significant number of users can exchange currencies among themselves. Some of the leading platforms also provide multiple advanced facilities that are usually useful for professional traders.
Explaining the criteria for selecting the right crypto trading exchange
1. The procedure of purchasing cryptos
The reason to consider this factor before settling on a platform is that various exchanges prefer separate methods of payment. Common methods range from a bank transfer, card payment to PayPal and other digital currencies to make a purchase.
For novice traders, it is a healthy discipline to start with fiat currencies and learn about the various payment methods before opting for a specific platform.
2. Security measures
When it comes to investing resources, the foremost priority should be verifying the legitimacy and authority of the platform that you are settling for. With the emerging numbers of exchanges in recent years, it is possible to come across scams that may turn your funds prone to danger.
It is a sensible idea to verify certain measures provided such as 2FA, review the recovery phase of an account, and the type of storage you are provided to store your funds. Checking the legibility of the platform will ensure you a sense of security and will aid in keeping your funds safe from potential frauds.
3. Transaction fees
Considering the fee structure of a crypto platform is critical since it enables you to realize what you are up against while performing multiple tasks. The structure of the fees varies directly with the style of investing you are intended to execute.
For instance, for a day trader, high transaction fees would not be beneficial but for someone who is interested in saving up for retirement transactions, contemplating fee structure would be less important. Make sure to check for the variations in the fees for using different types of currencies as well.
4. User experience
Considering the UX and UI factors of a platform is critical, especially if you are new to in investing crypto. As a beginner, you might want to look for a platform that implements an intuitive interface and navigation. Apart from evaluating the interface, considering the facility of prompt customer care and other related functionalities is also necessary when you are opting for a crypto exchange.
Determining the most reliable crypto trading platform is the key to determining the success factor of a trader’s trading journey. Understanding the ways and realizing what qualities to look for are thus critical when finalizing a trading exchange.