For all of you who have decided to test the crypto waters, it’s important to choose the right crypto exchange to start trading. Trading cryptocurrencies isn’t the same as trading stocks; the crypto market behaves distinctly. And for the uninformed, the risks of losses can be huge.
Tips to find the best crypto exchange near you:
One of the first things that you need to look for is a reliable and trusted crypto exchange near you. Earlier, crypto enthusiasts would get crypto coins through mining which was an energy-intensive and costly process. But, things changed when crypto exchanges appeared.
Crypto exchanges are nothing but user-friendly platforms that facilitate buying or selling of crypto coins. Sounds simple, right? But, given the overwhelming number of options that are there today, deciding on the right crypto exchange can be difficult. Here’s how you can make the right choice:
- Jurisdiction: When you search for a crypto exchange near you, it is imperative to find out whether it serves customers in your area. Not all crypto exchanges are allowed to operate in every state. Jurisdiction will tell you not only whether the exchange you have opted for can serve you but also whether it conforms to the approved rules and regulations in that state.
- Ease of use: Trading can be unnerving for a first-timer. It’s therefore important that the crypto exchange you use makes it easy for you to get started. If the registration process is too complex and cumbersome, it will intimidate new investors. A lot of data, too many charts, and a complicated interface can throw you off; look for user-friendly platforms which cater to beginners. Some exchanges even let you choose between “advanced” and “basic” layouts, depending on your experience.
- Consider crypto coins: As new coins come out almost every other day, new investors may want to experiment with them. While not every exchange will offer all types of crypto coins, you should look for one which has what you want. Usually, larger crypto exchanges like Kraken and Coinbase provide an impressive variety of tokens and coins.
- Check for liquidity: An exchange without liquidity is best avoided; if you cannot convert your coins into cash and vice versa, you may find yourself in trouble. This is necessary because crypto prices fluctuate frequently. So, when the value of a coin is skyrocketing, you may want to complete the buy order fast. So, check the trading volumes of crypto exchanges before you commit to one, if volumes are high, you can be certain of high liquidity. Besides, it is always wise to choose an exchange that has been around for many years, has been audited from time to time and enjoys credibility.
- Compare fees: You need to understand that transacting through crypto exchanges isn’t going to be free of cost. All exchanges charge a trading fee, withdrawal, and deposit fee. This may vary depending on the kind of transaction and the payment method used. Before selecting an exchange, be sure to compare its fees with that of the others, and inquire about hidden charges, if any.
- Security: Anybody who is planning to buy or sell crypto through an exchange knows of the security risks. The infamous Mt. Gox incident in 2014 led to losses in customer assets worth almost $460 million. The BitMart exchange suffered a similar fate when it got hit with $150 million in losses. This is why it’s important to check whether an exchange uses dual-factor authentication. This ensures the second line of defense to protect your money from thefts and scams. To keep imposters and scammers at bay, some exchanges demand user ID verification documents like a driver’s license or passport when you create an account.
- Tech support: When you are new to crypto trading, it’s normal to face problems. This shows why you need an exchange that has a 24×7 customer support system to help you.
If you can follow these easy tips, finding a trustworthy, user-friendly, and credible exchange shouldn’t be a problem. Remember not to invest more than you can afford to lose, and reach out to GoCrypto NYC to know more about exchanges.