Choosing the best Cryptocurrency Exchange is a hard thing to do. Most people don’t know how to choose one online vendor over the other and most times go for the most popular and easiest to use one which for the majority of people is Coinbase.
What you should for when choosing your crypto exchange
Nowadays there isn’t such a thing as being “too careful”. Choosing the best service provider you can is based on many things and when it comes to cryptocurrency exchange here is what you always have to keep an eye out for.
When Bitcoin was launched back in 2009 a thing most of its users liked was the privacy it provided them. You only needed to give personal details only when purchasing the cryptocurrency and then you would use it for transactions without anyone knowing who is behind it.
So based on that it would be a shame if an exchange provider would ask for some relatively personal details other than your credit card/bank account number. It would defeat the whole purpose of cryptocurrencies if you were to give those up.
Reputation and Legality
A good reputation never killed anyone but a bad one could easily ruin your eWallet balance. Always check if an exchange is licensed to see whether it’s completely legal or not. Many of them have been victims of hacking and you know what would happen in a situation like that.
You would lose all your money. That’s another thing to keep in mind. Never let your coins sitting around on an exchange. Only use the amount you want to trade for real money or other cryptocurrencies.
Each exchange will require specific fees. That doesn’t mean you should go for the lowest ones as that could be a scam. Always be careful and go with reputable ones but before you do always check the rate difference between the fees each of them wants you to pay.
Usually, bank transfer fees go for about 1-2% while using a credit card is more in the 4-5% mark. You could use cash as they go for only a 1% fee most times unless you use an ATM such as the Bitcoin ones. Those will always charge you with a 5-10% transaction fee.
Limit and Speed
Choosing an exchange that lets you use big amounts of a cryptocurrency shouldn’t worry you that much as the majority of cryptocurrency owners usually only want to use little amounts. If you mean business, though, choosing a high limit one would be the best option for you.
Most, if not all, cryptocurrencies are decentralized and that means that no banks interfere with the transactions thus making the time said transactions take to complete almost instantly. Based on how fast each cryptocurrency’s Blockchain refreshes its blocks transaction times can greatly differ among them. Try going for an exchange that is relatively fast in that segment like Coinbase, Changelly, or Poloniex.
Type of conversions
The last, but not least, thing you should look for in an exchange is the amount and type of conversions they offer. By that, we mean the real currencies or other cryptocurrencies you could exchange your preferred cryptocurrency for. Most reputable exchanges offer the major ones so you should be all right for the most part.
Choosing the best Crypto Exchange can become a hassle-free process should you choose to follow our advice. Always remember to be careful of who you trust your money with and go with a reputable cryptocurrency exchange such as Coinbase. Especially if you are a beginner in using cryptocurrencies you really can’t go wrong if you choose them. They are a safe, and trustworthy provider.