Choosing The Best Cryptocurrency Exchange – A Full Guide

Just a few years ago, the thought of dabbling in the crypto world was not welcome by everyone. Cryptocurrencies were new and people were having big reservations about investing in them, and you could see why they felt that way. However, the crypto world and blockchain technology keep maturing, so investing in digital assets is now easier than ever!

People now begin to see the vast benefits that come from the desentralisert and secure blockchain platform, so the number of krypto utveksling has risen enormously.

Therefore, novices in the kryptoverden might feel overwhelmed by the choice of crypto exchange – where do they start exactly and how to choose just the right one? That is where we come in, so let’s walk you through how you can find your perfect crypto exchange!

Hva er en Crypto Exchange?

Let’s take a step back now, as first, you need to start with the basics. A crypto exchange is a platform Det serves as an intermediary in the exchange of fiat money for cryptocurrencies or other digital assets. Of course, the online platform will charge a fee for each trade users make – usually between 0.1% and 5%.

A crypto exchange will connect buyers and sellers of cryptocurrencies together in a safe environment for making transactions.

Why are Crypto Exchanges Important?

Du kan også buy cryptocurrency directly from a seller in what is known as a peer-to-peer utveksling, but it is not plain sailing. There are some problems you may encounter:

• You won’t know the source of the coins
• Likviditetsproblemer
• Prisproblemer
• Hastighetsproblemer

Krypto-utvekslinger will wash away these hurdles and will ensure you enjoy 100% secure and fast transactions!

How to Choose a Crypto Exchange – Factors to Consider

Nå som du know how crypto exchanges work and why they are so important in today’s world, you might be itching to start trading at one. Well, not yet, as there is a process that you need to follow before choosing a crypto exchange, so always be on the lookout for the following factors.

Sikkerhet

Teknologi has come a long way, but hacker attacks are always possible. Security breaches can be quite serious, so you need to feel confident about trusting a crypto exchange with your digital possessions.

Thankfully, there is an easy way to check the security of the crypto exchange. Security protocols such as two-factor authentication are always a good sign. Furthermore, security measures against phishing scams and other attacks are also welcome, as well as the KYC process required, and its depth.

Country Restriksjoner

En generell tommelfingerregel er at du choose a crypto exchange from your own country, but we know it is not always possible. There are a number of crypto exchanges that accept traders from several countries but don’t forget to check whether residents from your territory are allowed there.

Støtte for Fiat-valutaer

Note that some platforms don’t support fiat currencies, and that may be a stumbling block for the vast majority of new users. So, it is vital that you check which options you have for your transactions while on the platform!

The Number of Coins You Can Trade

Moving on, you need to find yourself a crypto exchange that will support the most traded cryptocurrencies. There are more than 20,000 cryptocurrencies at the moment, and of course, you won’t find a platform for them all, but you need to have at least the most popular options available.

The Variety of Trading Features

It is not just the cryptocurrencies you need to be on the lookout. Crypto exchanges now become more and more complex, so their offerings increase as well – you won’t need to trade just with tokens and coins, instead, additional products like ETs, futures contracts, etc. are at your disposal.

Be Aware of the Fees

There is nothing free in this world, and that is one of the main rules to remember at crypto exchanges. You can expect all transactions to come with a fee, regardless of whether you make a deposit, withdrawal or you simply balance your transfers.

As mentioned above, fees can vary, depending on the crypto exchange, so make sure to check them and see whether it works fine for you!

Likviditet

Kryptolikviditet refers to the ease you get to enjoy when making transactions with crypto into fiat and vice versa. A liquid crypto exchange will allow you to quickly sell your asset as close as possible to your asking price.

So, never neglect to check how liquid a platform is – it is a cornerstone of quick and cost-efficient transactions. You can check the platform’s liquidity by going through its past 24-hour trading volume.

Which are the Best Crypto Exchanges?

It is now time to put our words into practice. We have done a bit of research and to save you some time on doing the same, we have come up with a list of the best crypto exchanges. Some of these are tailor-made for beginners, while others may be suited for more experienced crypto traders:

• Binance – everyone has heard of Binance, arguably the most prominent crypto exchange and one that offers the most cryptocurrencies for trading.
• Coinbase – ideal for all newbies in the crypto world as it has a simple process of buying and selling cryptocurrencies.
• BC Bitcoin – a brokerage service that allows new crypto enthusiasts to invest larger amounts of money.
• Bittrex – tons of altcoin markets are available at Bittrex, which is its unique selling point.
• Kraken – both beginners and experienced crypto traders will enjoy Kraken, an exchange established in 2011.
• BitMex – allows users to trade crypto futures and perpetual contracts, so it is a contracts trading platform.
• Bitstamp – a simple-to-use exchange platform that allows you to buy Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash with tons of fiat currencies.
• Bitfinex – ideal for more experienced investors in the crypto world.

Is There Another Way To Trade Cryptocurrencies?

We would understand if you don’t feel comfortable opening accounts at crypto exchange platforms. After all, this is a completely new world, but rest assured – there are alternatives as well!

If you don’t want to open a crypto exchange account or you simply are not able to do so, you can always utilize a couple of services:

• Lokale Bitcoins – a peer-to-peer Bitcoin exchange platform that allows you to meet people in your area and buy cryptocurrencies offline;
• Bitcoin ATM – as the name suggests, this is an ATM that allows you to trade Bitcoin.

An Ever-Evolving Industry

Alt i alt kan vi si det cryptocurrencies are evolving at a fast pace and things change all the time. That is why you always need to be sharp whenever you decide to trade your coins at crypto exchange platforms.

New technologies are coming, and the crypto market will change in the coming years, but the guide above is always a good stepping stone to help you get started in the digital asset trading world!