Factors to Keep in Mind When Choosing a Crypto Exchange Platform

Most people especially new crypto traders, without knowing anything, start crypto trading by creating an account on any exchange platform, but later find out that the features are not what they wanted, and as a result, they have to move on from there. it happens. Actually, these people choose the exchange through a Google search or by being influenced by someone (So called “influencer”). If you are also among these people and are facing confusion or are having difficulty choosing an exchange platform, then this article can help you a bit. I will tell you some key features, keeping in mind that you can choose a good exchange platform for yourself.

So let’s start.

Factors to Keep in Mind When Choosing a Crypto Exchange Platform
Factors to Keep in Mind When Choosing a Crypto Exchange Platform, Image by rawpixel.com on Freepik

Choose According to Your Trading Type

There are many types of trading, like spot, future, and grid. By the way, most people prefer spot trading only. If you want to trade something other than spot, you must find a good exchange platform on your own. For this, make a list of some exchange platforms that you think are good, then visit their website (if possible, their mobile app as well), and compare the trading features that you want. This is the best method to eliminate bad exchange platforms.

Must Be Simple to Use

As far as possible, choose an exchange platform that provides all the features with just a single click. Simplicity becomes even more important when you are trading on a mobile app. Some exchanges have so much UI/UX to make their websites look nice, but the problem is, it takes a long time for new users to understand them. ​​

Must-Have Buy and Sell Features

If you are starting to trade for the first time, then you cannot ignore this feature. This means to say, this feature must be in your exchange; if it is not, then you will have to transfer your funds from one exchange to another, which will negatively impact your profits. As far as the payment method is concerned, it depends on which one you are comfortable with. You can pay by bank transfer, credit card, peer-to-peer, or any online wallet. According to me, if you use it cautiously, then P2P is the best method, as it gives you a wide choice of payment methods so that you can easily buy and sell cryptocurrency in your local currency.

Offer a Large Number of Coins

I include this because it is no longer possible for anyone to purchase coins such as Bitcoin or Ethereum, especially for new traders, so they look for the same coin or token that is cheap and highly profitable. But the problem is that not all exchange platforms list cheap coins because they are risky. As a result, when selecting a crypto exchange, ensure that the coin or token in which you wish to invest is listed on that exchange platform. If not, then you will have to find another alternative exchange platform.

Lower in Fees

There is no scope in this; you should choose an exchange with low fees. There can be many types of fees on an exchange, such as exchange fees, trading fees, and withdrawal fees. Let me tell you that the fees are high on the exchange that only converts crypto to crypto. While the fees are lower on the exchange, where the trading is done through the order book. You cannot reduce the crypto withdrawal fee because the miner fee is already fixed. But to reduce withdrawal fees, you can choose an exchange that supports multiple blockchain networks for the same coin; for example, the fees for ERC20 coins are very high, while the fees for TRC20 are almost zero.

Great in Reviews

It tells you how safe your funds are with an exchange. To know this, you have to look at the background history of the exchange platform to see whether it was a victim of hacking or whether it suddenly stopped fund withdrawals. If you want, you can also see the exchange review, which can be of any user or of any website. A review is a good way to learn because it gives complete information in a minimum amount of time. But the problem arises when the review is paid and you are not aware of it. Some exchanges have been known to be fraudulent and exit scams, which means they disappear with users’ assets.

High Security

If the security of an exchange is not good, stay away from it no matter how many great features it offers. How safe it will be after your account falls into someone’s hands by mistake depends on the security. By the way, all exchange platforms have the same security features. And you must choose an exchange that has a good track record of security, uses cold storage for the majority of its assets, has two-factor authentication for user accounts, and has undergone a security audit. Also, it’s important to use a strong and unique password and enable two-factor authentication in your account.

Conclusion

In conclusion, choosing a crypto exchange is a crucial decision that can have a significant impact on your trading experience and the security of your assets. When selecting an exchange, you can also consider factors such as jurisdiction, customer support, and regulations.

It’s also important to do your own research and read reviews from other users before making a decision. This can help you gain a better understanding of the exchange’s strengths and weaknesses.

While leaving, let me tell you that you will have to do all this work yourself because no one knows better than you what you want.

Personal Note From MEXC Team

Check out our MEXC trading page and find out what we have to offer! You can learn more about crypto industry news. There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading!

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ABHISHEK RAJBHAR

Abhishek Rajbhar is well-versed in cryptocurrency and blockchain and can explain complex concepts in an easy-to-understand manner. Whether it's a news article, a blog post, or a technical analysis, he can provide explicit and engaging content that informs and educates readers.

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ABHISHEK RAJBHAR
Abhishek Rajbhar is well-versed in cryptocurrency and blockchain and can explain complex concepts in an easy-to-understand manner. Whether it's a news article, a blog post, or a technical analysis, he can provide explicit and engaging content that informs and educates readers.