If you want to start buying and selling cryptocurrencies, finding a reputable exchange to process your transactions is essential. Exploring your options for exchange platforms opens the door for you to join the 21 percent of adults in the United States of America who use Bitcoin. Doing ample research is the best way to find and select a cryptocurrency exchange you trust.
The primary goal for crypto users is to generate crypto trading profits, but doing so is only possible with the correct exchange. The wrong exchange could result in getting scammed out of your hard-earned money.
The good news is that you’ve found the perfect guide to finding the best options for crypto exchanges in 2023. Keep reading this article to take your crypto trading profits to a new level today!
Check the Coins You Can Trade
The first thing to look for in a crypto exchange is the number of coins you can trade. Some exchanges limit your options to large coins, like Litecoin, Bitcoin, and Ethereum. New coins constantly develop, and you want to take advantage of incredible investment opportunities when buying and selling cryptocurrencies.
There are more than 10,000 coins available to purchase. You won’t find options for exchange platforms that provide access to each of these coins. Take some time to analyze which cryptocurrencies stand out to you the most. If you’re interested in Bitcoin, you’ll have several excellent options for favorable transaction fees.
You can’t go wrong with big exchanges like Coinbase and Kraken, though it’s helpful to find a bitcoin atm near you. They’ve served thousands of crypto users, so you can trust that they won’t scam you out of your money. Coinbase offers access to more than 400 coins, so it’s perfect if you’re looking for new investment opportunities.
Another option is finding overseas exchanges. These options for exchange platforms offer access to obscure coins. You can hit it big and get massive returns from investing in the next Dogecoin.
Check the Liquidity
You also must check the exchange’s liquidity when buying and selling cryptocurrencies. An exchange with poor liquidity makes exchanging your coins for cash difficult. Some offer this ability with a massive markup, which puts a damper on your financial situation.
It’s only possible to generate a massive return if you can convert your purchase offer from cash to a coin of your choice. Trading volume is a wonderful tool when diving into an exchange’s liquidity. The higher the trade volume, the higher the exchange’s liquidity.
It’s also wise to find a crypto exchange that is established. A track record of platform security and a positive user experience are great signs. A good rule of thumb is to find an exchange with a track record of success stretching back at least five years.
You also want to work with an exchange willing to prove that it holds the assets it claims to possess. Peace of mind is vital when you’re buying and selling cryptocurrencies.
Compare the Transaction Fees
Crypto exchanges are known for their transaction fees. You’ll lose money if you don’t do your due diligence when exploring your crypto exchange options. Crypto is far different from brokerage accounts with Charles Schwab, where you can make investments for free. Most crypto exchanges will charge a fee each time you make a deposit.
It’s also normal to face a fee when you withdraw or process a purchase. These fees can range as high as 5 percent, depending on how you pay and the trade size. Your trading volume often determines the fees over 30 days.
More transactions equal higher fees. You’ll face smaller fees if you make one transaction worth $20,000 than if you make ten transactions worth $1,000. Keep that in mind when you start buying and selling cryptocurrencies.
Look Into Exchange Platform Security
As with any place where money changes hands, you can always find scammers hanging out in the crypto market. Your top priority when you’re ready to select a cryptocurrency exchange is to find one that offers top-notch security. You don’t want to discover that the crypto exchange storing your keys got hacked, and you’ve lost everything.
Mt. Gox is a key lesson in choosing a crypto exchange that doesn’t have ample platform security. Crypto users lost over $400 million in assets due to a data breach. BitMart also got hit by hackers, resulting in $150 million in lost crypto.
Avoid putting your hard-earned money into a crypto exchange that isn’t invested in keeping your assets secure. Check the history of crypto exchanges to find out if there’s a history of cyber theft and data breaches.
The best crypto exchanges offer two-factor authentication as a basic feature to protect against phishing attempts. Biometric login is another feature that will keep your investments safe. It uses fingerprints and facial recognition on your smartphone to prevent access to unauthorized users.
Some exchanges go the extra mile by requiring users to show a passport or government-issued identification to confirm their ID. Ensure you can also freeze your account to protect your assets should your keys fall into the wrong hands.
Explore the Insurance Policy
As mentioned earlier, crypto exchanges are prime targets for hackers and scammers. Investing in security measures is a great way to keep customers happy, but the best options for exchange platforms also provide insurance should you lose any of your investments.
Most exchanges carry commercial crime insurance as a result of data breaches. This covers dishonesty, theft, robbery, and cyber fraud. Keep in mind that insurance coverage varies from one exchange to the next. Reach out to your different options to ensure they have the necessary coverage to protect your digital assets.
Know the Benefits of Crypto Exchanges
It’s essential to know more about the benefits you’ll enjoy when you start using crypto exchanges as part of your crypto trading strategy. Traditional brokers and stock exchanges are limited in their investment options. The same cannot be stated for your crypto exchange options.
Here’s a closer look at the exceptional benefits you’ll enjoy when you select a cryptocurrency exchange.
Bitcoins are worth tens of thousands of dollars, but that shouldn’t stop you from purchasing fractions of a coin. It’s easy to purchase a fraction of any asset that stands out to you. You can purchase a fraction of a Bitcoin and hold onto it in the hope that it will grow in value.
Traditional exchanges don’t provide this level of investment. You’ll need to purchase an entire share of the stock. That’s far from the reality when you start buying and selling cryptocurrency. Amazon stock sells for $1,000 per share, putting it out of most investors’ budgets.
You can purchase one percent of a Bitcoin with ease when you select a cryptocurrency exchange. It’s the simplest way to get started with your crypto trading strategy.
Another perk of trading with a crypto exchange is the fact that the market is always open. You can buy or sell Bitcoin from anywhere in the world, no matter the time. All you’ll need is an internet connection, and you can start making investments. It’s convenient for individuals who invest in crypto as a primary form of income.
Traditional exchanges limit trading to a certain period of time during normal business days. You can’t make any trades after the market closes. Think of it through the lens of a brick-and-mortar store that closes at 10 PM versus Amazon, which is always open for business.
There’s no reason not to take advantage of 24-hour trading when you start investing in crypto. It’s the best way to make lucrative trades that result in a great return on investment.
Fiat currency transactions are difficult because they take time to process. You’ll experience instant transactions when you start buying and selling cryptocurrencies. The exchange takes care of settling the transaction on your behalf, and the process moves as fast as the blockchain allows.
You’ll hit the button to start the transaction, and the assets will go where they’re supposed to end up with ease. Traditional exchanges can take up to 48 hours to process a transaction. With your options for exchange platforms, you’ll have your Bitcoins in your digital wallet in a matter of minutes.
Crypto exchanges also offer great security with their interfaces. They’re also easy to access from a laptop, desktop, or smartphone. You’ll love the accessibility and security offered by the best exchange options.
Now You’re Prepared to Select a Cryptocurrency Exchange
Preparing to select a cryptocurrency exchange comes down to researching the security offered by the platform and the coins you can invest in. You should always ensure that you can start buying and selling cryptocurrencies that appeal to you to get the best return on your investment. It’s also essential to look for a track record of transparency and success within the options for exchange platforms.
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