With so many options, the world of cryptocurrencies can be a confusing place. Knowing where to start as an investor can be difficult, and with so many exchanges, choosing the one that best suits your needs can be difficult. In this post, we’ll show you how to compare different crypto exchanges, what features they offer, and help you find the best trading platform for your needs.
What defines a cryptocurrency exchange?
A cryptocurrency exchange, or crypto trading platform as it is often called, is an online marketplace where you can trade fiat money (like dollars and euros) for cryptocurrencies like bitcoin. You can also sell your digital assets to the website to get cash back in your bank account.
Why You Should Compare Crypto Trading Platforms
It’s a good idea to compare different exchanges before you start trading, for example two of the biggest platforms Kraken vs. Binance. The market has grown massively and today the top crypto exchanges have a trading volume of up to around USD 25 billion. This means that the leading trading platforms are constantly competing with each other to attract investors.
You will find that the user interface, tools and features, available currencies and fees vary between different exchanges. Which platform to choose depends on your level of experience and preferences. So how do you choose a crypto trading platform? We have put together some tips below to help you make a decision:
The first thing is security, and this should be high on every investor’s list. You need to know that the platform was designed with user security in mind – that is, it is protected by the latest encryption technology. When in doubt, stick with the most popular exchanges to make sure your trading is safe.
Next up is customer service because you want a platform that offers quick help when needed. The customer service team should be able to respond within a maximum of 24 hours – especially at peak times.
The third factor is liquidity, which essentially means the number of buyers and sellers on an exchange at any given time. You want to choose a platform with high liquidity as it makes trading easier.
User interface, tools and functions
Make sure you compare the user interface and tools. You want a platform that has all of the functionality you need in one easy-to-use package – including charts, graphs, and price notifications when needed.
Another factor to consider is the number of cryptocurrencies available on a given trading platform. You want to choose a crypto exchange that has many options. This makes it easier for you to diversify your portfolio. You might also be interested in a specific coin that only some platforms offer.
Trading Fees and Expenses
Finally, there are trading, depositing, withdrawing, and borrowing fees to watch out for. The cost should be reasonable and appropriate for the amount of helpful features you get.