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5 factors to consider when comparing crypto exchanges

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Through CNBCTV18.com IS (released)

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Here are five factors that can help you determine which exchange is right for you:

Today, trading and investing in digital assets is pretty easy thanks to the many crypto exchanges available to you. Just choose the right exchange, create an account and buy/sell/trade cryptocurrencies with ease. However, with so many different options to choose from, putting your money behind a specific exchange is easier said than done.

But fret not; Here are five factors to help you determine which exchange is right for you:

1. Security:

The first thing to look at is the security of the exchange. Go for a platform that always strives to secure their systems. The best exchanges run regular bug bounty programs, where they reward white hat hackers for pointing out network vulnerabilities. Good crypto exchanges also offer two-factor authentication and other robust security measures to protect your holdings. And as an added security measure, they will also insure customer assets against hacks and attacks.

2. Investment and Trading Opportunities: A good cryptocurrency exchange will provide you with a variety of investment and trading opportunities. For example, some platforms in India offer more than 300 cryptocurrencies for investors and traders to choose from. In addition to these coins and tokens, some exchanges also offer alternative crypto products such as futures, ETFs, etc.

3. Liquidity: Liquidity determines how easy it will be for you to convert your crypto into fiat and vice versa. Hence, you need to look for a crypto exchange with good liquidity. The easiest way to get an idea of ​​an exchange’s liquidity is to look at its 24-hour trading volume; the higher the better. There are multiple platforms that provide real-time data, including trading volumes, of the various crypto exchanges in India and the world.

4. Fees: All crypto exchanges have a range of fees. However, the number of fees and the extent to which they affect your earnings vary from one exchange to the next. Broadly speaking, the best platforms have a transaction fee of 0.2 percent or less. You should also compare trading, deposit, withdrawal and balance transfer fees before choosing a crypto exchange.

5. Features: Look out for things like fast onboarding, 24/7 customer support, a mobile phone application, a wide range of payment methods, etc. These small features can make a big difference in your trading/investing experience. When it comes to mobile apps, you should also look at customer reviews and ratings. This will give you a good idea of ​​the quality of service on offer.

6. Rewards: Free crypto/money never hurts. Therefore, as an added value, you should look for cryptocurrency exchanges that reward good customers. Some exchanges offer a referral bonus where you can earn up to 50 percent of the trading fee paid by the friends and family you refer. Some exchanges also offer crypto rewards for learning about projects and completing quizzes.

A good cryptocurrency exchange will have a large customer base. This is an indicator that other investors put their trust in the said platform. Also remember not to choose an exchange just because it has the lowest fees; It should also tick all the other boxes. Finally, crypto markets are highly volatile – remember to back all trades and investments with thorough market research and understanding.

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