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24 Nov 2021

Does Your Crypto Exchange Live up to These 5 Requirements?

Crypto trading can be fun, exciting, and possibly profitable. But for the experience to be a positive one, you’ve got to choose the right crypto exchange.

Do you have multiple years of experience in crypto trading? Or did you just discover that this hobby might be something for you? Your prior knowledge doesn’t matter. The five bullet points below consist of questions everyone should ask themselves before choosing a crypto exchange.

Remember, if you have already chosen an exchange but it doesn’t satisfy your needs, it’s never too late to pick a new one. At Daytrading.com, you’ll find all the information you need when it comes to trading. The site also offers reviews of a wide selection of exchanges, where you can find a new one based on the answers to the questions below.

1. What Currencies are Supported?

Bitcoin, Ethereum, and Dogecoin are only a few of the many cryptocurrencies available today. Do you have a specific one you prefer? Maybe you like the high stakes that Bitcoin offers, or maybe you rather start off a bit smaller by trading with Dogecoins.

Since every trader has different preferences, it’s impossible to say which currency is the best for trading. The thing that matters is that your crypto exchange offers the currency and the trading pairs that you prefer.

2. What is the User Experience Like?

Crypto exchanges tend to focus a lot on the esthetic design. A good-looking site or app might make the trading more appealing, but be sure to look into the user experience being offered. A seamless journey will definitely minimize your frustration while trading.

         - Is the exchange simple to understand?

         - How many clicks are needed before you can make a trade?

         - Is the exchange optimized for mobile devices?

3. Is the Pricing Reasonable?

No matter what exchange you choose, you will have to pay a fee for your trades. To make the most of your trading you of course want to keep the fees as low as possible.

Trading fees can come in different forms. In most cases, it’s a flat fee per trade or a certain percentage of your trades during the last 30 days. Which one of these is the best depends on your trading activity and style.

4. Is the Liquidity High?

When trading with cryptocurrencies, liquidity is something you hear a lot about. High or low liquidity refers to how easy it is to complete a transaction. What determines the level of liquidity is the trading volume. If your exchange offers a high level of liquidity, your coin can easily be converted into cash or other coins.

5. Is the Security at the Highest Possible Level?

This is the most important question to answer. If your exchange does not prioritize safety, your assets are at risk. If these would be taken away from you, it doesn’t matter if the liquidity is high or if the user experience is fantastic.

Make sure your exchange is certified for encryption. This way, your sensitive information will never end up in the wrong hands. You should also look for contact information for your exchange, such as address, as transparency most often is a sign of legitimacy. Also, you should be able to log in using two-factor authentication. You don’t want anyone unauthorized to gain access to your account.

If you answer the five questions above, it will definitely become easier to find the crypto exchange right for you!

 

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