How to choose the crypto trading platform or cryptocurrency exchange?

Finding the best possible cryptocurrency exchange is extremely important in order to simplify your life later on.

When deciding on which crypto exchange to use, it depends on your personal preference, but you should also pay attention to the most important aspects of any crypto trading platform or cryptotrading exchange.

  1. Is the platform trustworthy? You do not want to put money into some random crypto trading platform that might just take your money and run. So be sure to do your research.
  2. Are traders from your country accepted? Cryptocurrencies and crypto trading are slowly being legislated in countries around the world. So you might not be able to sign up in every single popular cryptocurrency exchange you'd want to.
  3. What are the payment options? If the crypto trading platform offers the option to deposit fiat currency (for example, USD or EUR), what are the payment options? And are these usable to You?
  4. What's the minimum investment allowed? What's the minimum fiat deposit you can make? If you have low budget, choose the exchange that supports it.
  5. How high are the fees? Crypto exchanges have different fees for different things. And when in some platform one trade might cost you 1% of the trade value, another exchange might offer the same for 1/10th of that. The more trades you plan to make, the more important it is to find a crypto exchange with as low trading fees as possible.
  6. What fiat currencies does the exchange support? What cryptos can you trade in that exchange? While most popular and trustworthy exchanges offer you loads of different trading pairs, they also differ from each other.
  7. What kind of leverage does the crypto platform offer for trading? Leverage gives you he option to trade with, and earn from, more money than you actually have. Some crypto trading platforms and cyrpto trading exchanges might offer you up to 5x leverage, some 20x, some even 50x or higher.

    And when it comes to trading cryptos, leverage is a good thing to have. It gives you the chance to earn more than you actually have. For example, if you have $1000 to trade with and the platform offers you a leverage of 20x, it means that you can buy cryptos for not $1000, but for $20 000.

    Obviously, leverage has its own risks. As while it helps you earn more, it also makes it easier to lose more.
  8. Does the crypto exchange allow hedging? In most simple terms, hedging helps you reduce risks by allowing you to make two opposite trades.

    If you think that Bitcoin price will go up, you buy Bitcoin. But just in case, you short sell Bitcoin as well, should the trade not go your way.
  9. Does the exchange have reliable customer support? Hopefully you'll never need to contact them, but it's always good to know that if you need them, they are there for you.
  10. Liquidity. If you want to make a trade right now for the price you're seeing in the charts, can you actually make the trade instantly? Crypto market is a very volatile market, so you want everything to happen fast.

Jay Gory
Jay Gory
I became interested in cryptos only in 2021 when the crypto prices started taking off. Since then I have been in investing in cryptos myself and decided to launch with as well.
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How to choose the best cryptocurrency exchange?
Finding the best possible cryptocurrency exchange is extremely important in order to simplify your life later on.