When choosing a cryptocurrency exchange, look for these features.
Are you ready to invest and trade in cryptocurrencies?
You can access thousands of digital currencies on hundreds of platforms around the world, and with so many features you might not know where to find the best cryptocurrency exchanges and apps. Check out the following features and perks when shopping around for crypto platforms.
1. Security
Crypto may seem sketchy to some due to lack of government regulation and black-market use. To protect your holdings from theft, major platforms like BTCC take serious measures to keep your personal and financial information safe. Look for security features like two-factor authentication (2FA), encryption, and cold storage (offline storage to protect against theft).
2. Fees
In time, fees will likely standardize and drop across the board as competition increases and risks decrease. For now, you’ll find a broad range. On robust exchanges, you’ll usually face a trading fee and potential extra commissions. Binance is known for its competitively low fee. Some exchanges, like Voyager, offer commission-free trades. Platforms may also charge deposits and withdrawal fees.
3. Crypto selection
For example, BTCC offers 10 currencies on its platform, while others might offer hundreds. The number of currencies you can trade with varies greatly among exchanges. A large selection can overcomplicate the platform for novice traders, as they’re likely only interested in Bitcoin and a few other popular currencies. If you’re more experienced and have the time to do your research, you might want to invest in lesser-known coins on an exchange with a large selection.
4. Buy/trade options
The most common way to fund your account and buy crypto is by connecting your bank account. Other options are to use a debit or credit card. Some platforms may even allow crypto-to-crypto trades, while others won’t.
5. Availability
In your country and state, can you use the exchange? If an exchange is not available now, keep an eye out, because companies are constantly expanding. In contrast, if you are using an international exchange, you should be aware of any regulatory changes that could make it illegal to use one in your country. While platforms are supposed to keep you informed, swift changes and poor customer service are not uncommon. Therefore, you should take precautions.
6. Interest or rewards
To encourage you to keep your money on their platform, some crypto platforms offer rewards for your holdings, just like traditional bank accounts. With a minimum balance, some accounts offer 10% returns on certain coins. Unlike traditional bank accounts, your crypto holdings aren’t insured by the FDIC. If the crypto platform fails, you won’t receive your money back.
7. Wallet
There are not all exchange platforms that offer a wallet to store your crypto holdings. It would be more convenient to manage your wallet and trade in one platform. However, if you are holding a large amount of crypto, you should probably choose an external cold wallet for extra security.
8. Customer service
If there is anything wrong with your account, you're going to want a platform that can quickly respond to your needs. Crypto Trading Platforms don't always have the best customer service. An exchange that has a high service rating could significantly improve your experience if you happen to come across one. 9. Mobile apps
A mobile investment app could help you manage your crypto account and make trades on the go without navigating a clunky mobile website. Crypto might be the currency of the future, but not every platform is compatible.
10. Rewards credit card
You can earn crypto rewards with a few platforms, such as BlockFi’s credit card.
11. Debit card
In some Bitcoin Trading Platforms, you can use a debit card to make purchases directly from your crypto account without first exchanging for fiat currency (like U.S. dollars).
Crypto exchanges can be challenging to choose. If you’re just getting started, paying attention to these features can help you make an informed decision.
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