Once you have decided to invest or trade cryptocurrency, you need an exchange to get started. With the growing number of crypto exchanges, making the right choice isn’t as easy as you imagined. Can you afford to lag with everyone wanting a share of the crypto pie?
Crypto exchanges can be complicated, and deciding on one depends mainly on your goals. Some are hard to navigate, while others may charge you steep transaction fees. Therefore, a decision shouldn’t be taken in a hurry or on an impulse. You must conduct due diligence to avoid disappointments.
Know the purpose of crypto exchange:
If you plan to test the crypto waters in New York, you must look for crypto exchanges here. These are nothing but platforms facilitating trades for crypto investors and traders like yourself.
Exchanges are used to buy or sell crypto coins. Their workings resemble a brokerage where you must register for an account, put your money in it, and use it to buy assets.
Now, you may wonder how much technical knowledge you should have to trade crypto. What happens if you don’t know the steps to trade Bitcoin?
Thankfully, exchanges do the work for you. All you have to do is sign up on these and follow instructions to trade seamlessly.
Tips for finding the best crypto exchange in New York as a crypto beginner:
Different factors must be reviewed when choosing a crypto exchange: the crypto coins they offer, trading fees, withdrawal and deposit limitations, security provisions, user-friendliness, etc. Here’s a quick checklist of the critical factors that you should take into account when deciding on a crypto exchange in New York:
- Ease of use: This is the most important criterion when choosing a New York crypto exchange. If you are a beginner and unfamiliar with cryptocurrency trading, you need all the help you can get. Feeling intimidated about handling order books and technical charts is only natural. You need to find an exchange with a simple, user-friendly interface backed by solid customer support to help you navigate your trading journey. You will find many exchanges offering “advanced” and “basic” views for the benefit of their users.
- Security: Instances of exchanges being hacked and investors’ money being stolen are not unheard of. When you store crypto on an exchange, you have to be able to trust it to protect your hard-earned money. This is why you need to carefully examine the security provisions of an exchange before signing up for it. You don’t want to be a victim of a hack, right? Look for an exchange that has been around for longer and has a large, steady clientele.
- Reputation: Just like you read reviews about products before buying them online, read up extensively about exchanges before registering on one. A thorough background check will help you choose the right exchange.
- Jurisdiction: You need to inquire whether the exchanges you have shortlisted have permission to operate in your state. The jurisdiction indicates the customers they are targeting and the places where they can legally do business. Some exchanges cater to specific countries.
- Liquidity: You should choose an exchange having high liquidity. This means that the volume of orders here is substantial, allowing you to trade better. More assets indicate that the exchange either has many users or few users owning many assets and trading frequently. Unless an exchange has high liquidity, you may lose money when there is high volatility, and prices start plummeting.
- Range of assets: An exchange that offers a wide variety of crypto coins and tokens is preferred by users. You won’t find all kinds of crypto on a single exchange, but the leading ones will offer the more-popular coins like Ethereum, Bitcoin, Bitcoin Cash, Litecoin, etc. If you want to try your luck with lesser-traded crypto coins, it’s better to seek smaller exchanges.
- Trading fees: There’s no sense in signing up with an exchange that charges astronomically-high trading fees. Certain exchanges offer native “exchange tokens” created by the exchanges themselves and used to give users discounts on trading fees.
- Transparency: The exchange must be transparent about its fee structure, deposit and withdrawal limits, transaction fees, security provisions, etc. When an exchange isn’t, you should take it as a red flag.
Using these simple tips, finding a user-friendly crypto exchange in New York shouldn’t be hard for you. Remember that the crypto market behaves quite differently from the stock market, and being well-informed about exchanges and exercising caution will help you protect your assets.