With so many options, the world of cryptocurrencies can be a confusing place. It may be hard to know where you should start as an investor, and with so many exchanges out there it can be difficult to choose the one that’s best for your needs. In this post, we’ll show you how to compare different crypto exchanges, what features they offer, and help you find the best trading platform for your needs.
What defines a cryptocurrency exchange?
A cryptocurrency exchange, or crypto trading platform as it’s often called, is an online marketplace where you can trade fiat money (such as dollars and euros) for cryptocurrencies like Bitcoin. You can also sell your digital assets to the site in order to receive cash back into your bank account.
Why you should compare crypto trading platforms
It’s a good idea to compare different exchanges before you start trading, for example two of the biggest platforms Kraken vs Binance. The market has grown massively and today the top crypto exchanges have trading volumes of up to around 25 billion USD. This means that the leading trading platforms constantly compete with each other to attract investors.
You will find that the user interface, tools and features, available currencies, and fees vary between the different exchanges. Which platform you should choose depends on your level of experience and preferences. So how do you pick a crypto trading platform? We’ve put together a few tips below to help you make up your mind:
The first thing is security, and this should be at the top of any investor’s list. You need to know that the platform has been designed with user safety in mind – which means it’s protected by the latest encryption technology. If you’re in doubt, stick with the most popular exchanges to make sure you’re trading is safe.
Next up is customer service, as you want a platform that can provide quick assistance if needed. The customer service team should be able to respond within 24 hours at most – especially during busy times.
The third factor is liquidity, which basically means the number of buyers and sellers on an exchange at any given time. You want to pick a platform that has high liquidity as it makes trading easier.
UI, tools, and features
Make sure to compare user interface and tools. You want a platform that can offer all the features you need in an easy-to-use package – including charts, graphs and price alerts if needed.
Another factor to consider is the number of cryptocurrencies available on a particular trading platform. You want to pick a crypto exchange that has many options. This will make it easier for you to diversify your portfolio. You might also be interested in a particular coin that only some platforms provide.
Fees and costs of trading
Finally, there are fees for trading, deposits, withdrawals and borrowing to look out for. The costs should be reasonable and match the range of helpful features which you get.