With the increasing hype about Cryptocurrency, more people have started getting on board with buying, selling, and trading digital assets. However in the light of recent events, it has now become more important than ever to choose wisely before getting started. To begin trading, you must find a trustworthy and secure cryptocurrency exchange. However, finding the right one may be challenging with so many exchange options.
Understand it as, When you choose a bank for storing your money, many questions pop up in your mind, right? What are the bank charges, what services it will provide, about interest rates, ATMs, and security? Similarly, before choosing the right exchange, there are many factors to consider and know about.
Key factors to consider before selecting Crypto Exchange are –
- Security – ‘Security of the exchange’ is the first and foremost thing one should look at while choosing the exchange. Before choosing the platform, you must know its safety measures, how it will keep the assets safe, and how it will prevent your holdings from hackers and identity theft. A regulated platform is always the best option from a security standpoint. LCX is a regulated cryptocurrency exchange with eight crypto-related licenses under the Financial Market Authority of Liechtenstein. Detailed information about LCX exchange’s regulatory licenses can be found here: LCX Receives 8 Blockchain Registrations from Financial Market Authority Liechtenstein
The safety and security measures the platform must provide are –
- Know your customer (KYC)
- Biometric face recognition
- Two-factor authentication
- Advanced multi-layered security
- Web address beginning with HTTPS
2. Liquidity – Liquidity is another important factor to evaluate before deciding on the right exchange. An exchange with good liquidity will have many users/traders who are frequently trading. The liquidity in a crypto exchange can also be determined by looking at trading volume. The higher the volume of trade, the better the results.
3. Fees – When choosing the cryptocurrency exchange, the fees charges of different exchanges may vary from each other. You can compare the fee structure of exchange platforms based on your transactions, withdrawals, or trading. You must also look out for platforms having hidden charges.
4. Variety of Assets choices – Most exchanges only involve major currencies like Bitcoin, Ethereum, and Cardano. Therefore, when you choose an exchange, ensure it contains various products/assets. For example – LCX Exchange is a regulated trading platform that offers a variety of digital currencies.
5. Qualities – you can compare the different crypto exchanges based on their qualities. You can also check for reviews and ratings, which will show you the real picture of exchanges. Before choosing, you must look out for the following characteristics –
- Upgraded technology
- Available on mobile apps
- 24*7 customer support
- Rewards and bonuses
- Convenient payment method
6. User-friendly – mostly, users look for a platform that provides a user-friendly experience, and its functions are easy to understand. Beginners in crypto investing and trading want a platform with all the information about trading and market situations.
Conclusion
When choosing the exchange, you’re placing your trust in it. Your assets are at stake here. Therefore, it is important to make the right choice. And it can be done by gaining knowledge about the different exchanges. You can differentiate them based on functionalities, performances, fee structure, and opportunities. You’ve to weigh all the options and prioritize according to what suits you best.
