A cryptocurrency exchange account is a good place to begin trading digital money. Cryptocurrency exchanges are analogous to online brokerage platforms. They make it easier to buy and sell digital currencies and tokens like Bitcoin, Dogecoin, and Ethereum.
It is vital to consider the supported assets, payment options, fees, and security measures of a cryptocurrency exchange before signing up. To help you choose the best cryptocurrency exchange, we analyzed how you can compare a crypto exchange with another.
How to Compare Different Crypto Exchange Platforms?
There are various factors to consider while deciding which cryptocurrency exchange is best for you. While analyzing the differences between crypto exchanges, the following must be considered first and foremost:
Supported Assets
If you want to buy cryptocurrency other than the most popular, Bitcoin, you should check out the exchange’s supported assets before signing up. Some only work with a small handful of coins, while others give you access to hundreds for trading.
Payment Options
To buy cryptocurrency or fund your cryptocurrency exchange account, you normally have a few options. Though wire transfers are the norm for buying cryptocurrency, you may also use debit cards, credit cards, and other online payment options on preferred exchanges.
Fees
Consider the fees of a cryptocurrency exchange thoroughly before opening an account, as high fees may significantly reduce your investment profits. Transaction and withdrawal fees are the most common fees levied by cryptocurrency exchanges.
Security
Exchanges dealing in virtual currency are a major target for hackers because of the high value of the digital currency they trade. Because hacking and other forms of cybercrime are so widespread in the cryptocurrency exchange industry, it’s crucial to choose a platform that takes security seriously.
Customer Support
Assistance for customers who are either new to bitcoin or investing and have concerns or require assistance getting started. If that’s the case, your best bet is an exchange with top-notch customer support services.
Credibility
You should look at a crypto exchange’s credibility before opening an account with them. Check over the feedback given by previous customers, examine the background of the exchange, and search for any news articles that can shed light on the matter.
The Best Crypto Exchanges
Crypto.com
After launching in 2016, Crypto.com quickly rose to prominence as a top cryptocurrency trading platform worldwide. Today, it can be accessed in more than 90 countries and accommodates more than 250 different types of cryptocurrencies. In addition to a wide variety of supported assets, the crypto exchange also offers a comprehensive digital asset platform that includes the Crypto.org Chain, crypto visa card, CRO, output crypto products, and a lot more. However, the mobile app of Crypto.com outshines everything. It allows users to purchase, sell, exchange, earn a return on, and make payments using cryptocurrency.
Gemini
The Gemini, introduced in 2014, stands out from the crowd for its commitment to compliance and safety. Hot wallet insurance protects customer money in the event of a security compromise. To further reduce the possibility of fraud, it also encourages users to go through an identity verification procedure. Customers are strongly urged to use two-factor authentication to further ensure their accounts’ safety. They can pre-approve any devices that will be used to sign in to their trading account.
Coinbase
Coinbase is yet another great crypto exchange, as it allows direct USD deposits. The site now supports the purchase of Bitcoin, Litecoin, Ethereum, and over thirty more currencies and tokens. In addition, you can earn interest on your USDT balance, and there are several other ways to get token incentives.
BitMart
BitMart, which was founded in the Cayman Islands, has quickly become the go-to exchange for trading lesser-known cryptocurrencies. Investors wishing to diversify their portfolios with freshly released or rare crypto assets will probably find what they’re searching for on BitMart, as it provides many more assets and trading combinations than its market-leading rivals. Moreover, using the Earn function of the BitMart exchange, users may earn interest on their cryptocurrency assets. When a user has BMX, the exchange’s native token, they can get lower trading fees.
Kraken
Kraken, based in San Francisco, is an exchange that allows users to buy, trade, and store more than 120 different cryptocurrencies at minimal costs on its high-exchange platform, Kraken Pro. In the early stages of the cryptocurrency industry, this feature-rich crypto exchange platform quickly became the platform of choice for institutional investors. It has since retained its status as a trustworthy and reputable trading platform.
Should You Use a Cryptocurrency Exchange?
Registering with a crypto exchange might be the best way to buy a cryptocurrency for beginners. While purchasing a few hundred or thousand dollars’ worth of cryptocurrency from a local crypto ATM can be handy, it is better to use an exchange platform if you want to spend a higher amount or you’re planning to purchase a variety of cryptocurrencies.
The use of a cryptocurrency exchange is the most secure and legitimate method of acquiring cryptocurrency. But that’s certainly not the only purpose of using a crypto exchange. Here are a few reasons in favor of using cryptocurrency exchanges:
- Crypto exchanges like Coinbase and Binance make it possible to buy and sell cryptocurrency online or through a mobile app, wherever you are.
- The majority of the crypto market has a wide selection of cryptocurrencies and tokens, giving traders a lot of flexibility when it comes to creating a balanced digital investment portfolio.
- Most of the time, cold storage is used by the most reliable cryptocurrency trading platforms to protect their customers’ cryptocurrency holdings.
- Global cryptocurrency exchanges normally adhere to KYC/AML laws as well as banking legislation. This ensures that buyers are not dealing with a bogus company or shady buyers and sellers.
To Sum Up
Choosing the right cryptocurrency exchange is crucial for novices in the world of cryptocurrency trading and investment. You can find the best cryptocurrency exchange platform whether you want a lot of different digital assets, low fees, or an easy-to-use mobile interface.
