Cryptolorium Logo

How to choose the best cryptocurrency exchange?

Choosing the best crypto exchange for trading
Choosing the best possible cryptocurrency exchange is extremely important in order to simplify your life later on. But what should you consider when choosing a cryptocurrency exchange? What should you pay attention to?
(Page last updated: 5th of February 2022)

Choosing cryptocurrency exchange

When deciding on which crypto exchange to use, it depends on your personal preference and what you are really looking for.

When choosing the exchange, you'll want to pay attention to the following criteria:

  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. Bigger and more known exchanges are better in this case. Our choice in this category is Binance exchange.
  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? Can you deposit and withdraw using fiat or only cryptocurrencies? Can you buy crypto instantly with fiat?
  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 cryptos 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. When it comes to good coin selection, our preferred platform is Gate.io exchange. Lately we have also found that Kucoin coin selection is pretty good. Kraken on the other hand has only a small selection of coins, but they are better in other categories.
  7. How often are new cryptos added to the exchange? When it comes to new crypto coins, there's actually two things to consider. Firstly, you do want to see new cryptos added often enough. But at the same time you want to exchange also to do their due diligence, so that you could be at least somewhat sure that the new crypto isn't a scam.
  8. 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 crypto 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.
  9. 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.
  10. 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.
  11. 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.

When choosing the best exchange for you, you should consider all of these aspects, and then some.

Jay Gory image
Author: Jay Gory
I became interested in cryptocurrencies only a bit more than a year ago. Since then I have been in investing in cryptos using different crypto exchanges, playing around with crypto trading bots, and also launched Cryptolorium.com to share my crypto journey and my results with all crypto traders.
Our crytocurrency exchange reviews
More about crypto exchanges
Compare cryptocurrency exchanges - easy exchange comparison! small
Compare cryptocurrency exchanges - easy exchange comparison!
How to compare crypto exchanges? Our crypto exchange comparison tables will help you compare all crypto exchanges we have reviewed. Find difference between crypto exchanges, and find the crypto exchange with the lowest fees. How to compare crypto exchanges? We have decided to tackle that task in small batches and compare crypto exchanges in different categories.
Best crypto exchanges with high trading volume 2022 small
Best crypto exchanges with high trading volume 2022
High volume cryptocurrency exchanges offer faster trades and safer trading environment.
Crypto Exchanges with most coins 2022 – best selection! small
Crypto Exchanges with most coins 2022 – best selection!
Each crypto exchange lists cryptocurrencies based on their own rules. But which are the crypto exchanges with the biggest altcoin selection?
Top 5 crypto exchanges with low fees – trade cheap! small
Top 5 crypto exchanges with low fees – trade cheap!
Exchange fees can sometime be pretty high, or just hard to understand. Find out which crypto exchanges offer the lowest fees, which crypto exchanges charge the least for deposits and withdrawals.
Top Crypto Exchanges For Beginners 2022 small
Top Crypto Exchanges For Beginners 2022
Find the best crypto exchanges for beginners! When you get started with cryptocurrencies, it can all look and feel overwhelming at first. That’s when simplicity should be the main thing you’re looking for. So let’s get going and see which are the best exchanges for beginners.
Best fiat exchanges 2022 – crypto exchanges that accept fiat small
Best fiat exchanges 2022 – crypto exchanges that accept fiat
Find the best fiat exchanges that allow deposits and withdrawals with fiat money. Fiat crypto exchanges make are the perfect choice if you want to deposit and withdraw money using your bank account.
No-KYC Crypto Exchange – Best No Verification Crypto Exchanges  small
No-KYC Crypto Exchange – Best No Verification Crypto Exchanges
No-KYC crypto exchanges offer you the option to stay anonymous and deposit, trade, and withdraw with no id verification requirement. Find the best anonymous crypto exchanges below. We’ll also talk about what makes them different from other type of exchanges.
Cryptocurrency exchange reviews: How do we review exchanges? small
Cryptocurrency exchange reviews: How do we review exchanges?
We have tried to make our crypto exchange reviews as thorough as possible and offer details about everything you might feel important. But what are we talking about exactly in our crypto exchange reviews?
How to choose the best cryptocurrency exchange?
Choosing the best possible cryptocurrency exchange is extremely important in order to simplify your life later on. But what should you consider when choosing a cryptocurrency exchange? What should you pay attention to?