Did you know that over 3 million people used cryptocurrencies to pay for goods and services in 2022? With the rise in popularity, expect many more to begin trading with cryptocurrencies in 2023.
If you’re new, you’ve probably found that it’s not easy to pick crypto exchanges when first starting out. There are a ton of options for crypto exchanges but the selection can be overwhelming.
The following guide will explain how to choose the right exchange for your needs and start making crypto trading profits.
First, ask yourself if the exchange you’re considering trades the assets you’re interested in. For example, most exchanges will support coins like BTC and ETH but not all exchanges trade Shiba Inu cryptocurrency and other alternatives.
Coins with a higher market cap get a spotlight on popular exchanges over others. But lesser-known coins often appeal to traders because of their potential to skyrocket. If that’s your aim, do your homework and choose an exchange with a diverse selection.
Many exchanges have run into security problems in recent years, so it’s important to research security features. If you hold your coins on an exchange, you’re trusting that exchange to protect your money.
Check the websites of the exchanges you’re interested in to find out more about their security practices. If you can’t find much or any information about security, that’s probably a bad sign.
The longer an exchange has been around and the more reviews it has usually means they protect their customers well. Look for exchanges that offer cold storage and multi-signature features to stop hackers.
Sometimes trading cryptocurrencies on exchanges can come with a lot of hidden costs. They make their money by adding fees to most transactions but some exchanges charge more than others.
It’s crucial that you understand transaction charges for the exchange you use if you want to make good profits. Try to find an exchange that offers discounted fees because it uses native exchange tokens.
Novice crypto traders usually have a lot of questions about the basics and how the exchange operates. Even advanced traders will likely encounter issues at some point and exchanges must provide fast support.
Urgent customer support is crucial because your money might be on the line. Crypto markets fluctuate fast and spending days for a customer support answer might really hurt your wallet.
Read customer reviews and examine the history of an exchange’s customer support features. Make sure they give fast responses and that past customers seem pleased. An exchange that prioritizes customer service usually handles other important areas well.
How to Pick Crypto Exchanges
Now you know how to pick crypto exchanges and start trading with confidence. Determine the assets you wish to trade and then research security, fees, and customer support.
Don’t forget to use online reviews from fellow traders to learn from any mistakes or successes they’ve had. Check out our site’s crypto section under “more for other helpful tips and tricks to get you started.