If you’ve been thinking about getting engaged with the world of cryptocurrencies and want to become involved in investing as well as trading, you may initially be overwhelmed by the number of exchanges available on a global scale.
Each exchange will typically promise a lot of features, and this can be a bit overwhelming at first, especially if you have no prior experience with investing or trading. However, to make things easier for you, the team at DXONE, a research-based crypto trading platform, shares some useful tips on how you can find the best cryptocurrency exchange for your specific requirements.
How to find the best Crypto exchange for you?
If you want to find the perfect cryptocurrency exchange that fits your particular needs, you will need to go over multiple options and review as much as possible each exchange as a means of truly grasping what they have to offer and understanding what works for you, and what doesn’t.
There are many indicators that you can watch out for, however, based on our experience, these are the top 5 that are worth your attention: volume, securities & insurance, usability, regulation, and fees, and we will look into each section individually. Note that DXONE is one of the best crypto exchanges that has many of these indicators covered.
Look out for those 5 indicators
We are going to go over each of these five indicators as a means of giving you an in-depth look at what you need to look out for.
Volume
This is a specific reference to the trading volume that occurs within a specific cryptocurrency exchange. Exchanges that have large trading volumes at crypto exchanges provide numerous benefits. For one, they help avoid any drastic price movements within a cryptocurrency’s price after a significant sale occurs by whales, and they also benefit by enabling the exchange to have a high level of liquidity, which is a factor typically valued by the most experienced investors. For example, exchanges such as Coinbase have high volume.
Securities & Insurance
Security plays a major role within an exchange. This is due to the fact that on a majority of cryptocurrency exchanges, you will find that they will ask you to make a hot wallet, which is the exchange-based cryptocurrency wallet through which you will manage your cryptocurrencies. What this means is that if the exchange were to be compromised, someone might be able to steal the crypto stored within that wallet. This is why you need to look out for features such as two-factor authentication (2FA), encryption, and cold storage options. Additionally, some exchanges might even go the extra distance and promise their users insurance on a certain percentage or amount of crypto that they are holding onto the exchange.
Usability
When it comes to the usability aspect, this refers to how intuitive the exchange is to navigate through, both from the perspective of its web client as well as its mobile application. You should aim to find an exchange that you are comfortable with using and one that has clear charting tools, indicators and showcases the information that you want to see at the point in time when you need to see it. It also needs to be an exchange that’s easy to understand, with intuitive menu systems and potentially even a search bar for every token and trading pair, so you can easily filter through all of the options.
Regulation
This factor specifically will play a major role depending on where you live. Based on the regulations an exchange follows, it might be or might not be accessible and available in your region. You should always keep an eye on the regulation on any exchange, as these companies are typically rapidly expanding, and they might experience regulatory changes as a result of this. This is something that you should look out for on whichever exchange you decide to use.
Fees
There is a high level of competition when it comes to cryptocurrency exchange availability, and one of the key regions where each exchange aims to appeal to beginner investors is with the fees. On the most robust exchanges out there, you will typically see a trading fee alongside an extra commission cost in some cases. There are exchanges that even offer commission-free trades as well. However, they might also charge a fee for deposits and withdrawals. Your goal here is to find the best exchange for your specific requirements, such as ones with 0% commission or just competitive fees to begin with. You can easily buy Bitcoin with low fees at DXONE.
The 5 Best Cryptocurrency Exchanges
Here, you will find a list of the five best cryptocurrency exchanges that tick all of the aforementioned boxes.
#1: Binance
Binance offers a high level of security and allows investors to invest in trade cryptocurrencies with some of the lowest fees in the crypto space. It can be a bit complicated at first to get into by beginners, but experienced trainers will find almost all of the tools they require in order to engage with the crypto market actively. Its native cryptocurrency token is known as BNB.
#2: Coinbase
Coinbase is one of the most well-known exchanges due to the fact that it enables users to quickly and easily buy, sell or trade cryptocurrencies. The main way in which it stands out is for its simple user interface, but the fees can be a bit competitive. It does offer interesting security features and has one of the quickest mobile apps.
#3: Crypto.com
Crypto.com has truly gone global throughout the past few years, sponsoring numerous events and shining a light on newcomers to the crypto space. IT offers a massive selection of digital assets, and it has fees that are on the lower side of the spectrum in terms of cost. There are interesting DeFi offerings, and it has its own cryptocurrency known as Cronos.
#4: FTX
FTX is one of the fastest-growing cryptocurrency exchanges that offers advanced trading features, including margin and futures trading. The main way in which it stands out is due to its custom-built hot and cold wallet hybrid system and two-factor authentication for each account and for crypto withdrawals. The native token here is the FTT token.
#5: DXONE
DXONE is a cryptocurrency exchange that was specifically developed to be a one-stop solution for cryptocurrency traders that aim to make serious trades throughout the cryptocurrency market. It is extremely accessible to beginners as-well, and one of the main ways through which the DXONE exchange stands out is due to its two-token model, which includes a native utility token known as the DX1U token and a native security token known as the DX1S token. Users can get significant discounts on the already competitive trading fees when they hold DX1U tokens.
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