Crypto exchanges: how to choose a safe cryptocurrency exchange
By Yuriy Bishko Updated November 11, 2022
In the field of trading, the first thing the user gets acquainted with and interacts with is the cryptocurrency exchange. Crypto exchange is one of the first, important and basic steps of every beginner. And how well you take this first step depends on the security of your finances and the way forward in trading.
- What are crypto exchanges?
- How to choose the right cryptocurrency exchange?
- What is the best crypto exchanges for cryptocurrency trading?
In this article, we will answer all the main questions and help you choose the best exchange for each of the key criteria.
What is a cryptocurrency exchange?
An exchange is a platform (website or mobile application) that allows users to buy, sell or exchange digital currencies (Bitcoin, Ethereum, Dogecoin, etc.) for other assets such as (USDT, BUSD, EUR, USD, etc.) or other cryptocurrencies.
For a trader, this is the main platform for opening transactions to buy or sell coins.
Watch now on YouTube: 6 Steps To Finding The Best Crypto Exchange For Yourself
How to choose the right cryptocurrency exchange?
The following criteria must be taken into account when choosing an exchange:
- Security - the first and most important indicator, all your finances completely depend on it. It is important to check how strong the security system is, the availability of insurance systems and reserve funds.
- Liquidity - one of the most important indicators. Simply put, it is the volume of trades, the ability to sell and buy assets quickly, in our case, various altcoins. According to the FTX Global Volume Monitor, the list of leading exchanges includes
- Reputation - reviews of the exchange in advance show of the exchange itself. Before choosing a good trading platform, it is advisable to read the reviews and research the history of the exchange. You don't know, maybe hackers hacked the platform and stole users' money. It is better to check this in advance than to be one of the victims.
- Development - the cryptocurrency sphere is changing quite rapidly. A year ago, only a few people heard about NFT, and today the whole world knows about it. It is important that the exchange is ahead of global trends and quickly integrate new products on its platform.
- Convenience - traders can spend hours in front of a trading terminal. A simple, comfortable and clear interface is not a desire, but a necessity.
What is the best exchange for cryptocurrency trading? Top exchanges in our opinion!
According to the rating of Coinmarketcap (one of the most famous sites about cryptocurrencies), the list of the best spot and futures exchanges includes
We have been dealing with trading for more than 8 years. During this time I had to work with a large number of different exchanges. With this experience, we can confidently recommend two exchanges - Binance and ByBit.
Binance - everyone, even those who are not interested in the cryptocurrency sector, has heard the name of this exchange. Not for nothing, because it is the most popular cryptocurrency exchange in the world. According to the coinmarketcap rating, the exchange is rated at 9.9 points out of 10. This is the highest rating among all available exchanges. Special advantages, from our point of view, include: convenient and simple interface, team development, constant integration of trends and new products, security and insurance fund.
ByBit - an exchange, which appeared relatively recently, but quickly gained popularity among a large number of traders. Derivatives exchanges are worth $ 15 billion and are aggressively catching up with 2nd place. ByBit is conventionally considered the younger brother of Binance. This can be easily seen by the almost identical similarity of interfaces and functionality. US citizens do not have the opportunity to use futures and credit leverage. That is why a huge advantage of the exchange can be considered the lack of mandatory KYC verification. This makes it possible to circumvent the ban, full instructions in this article.
The crypto exchange is one of the most important first steps of a trader. It is very important to approach this issue with full seriousness and responsibility. After all, the security of your finances and trading results directly depend on it.