Published on November 10th, 2019 | by Bibhuranjan0
Guide: Choosing A Best Cryptocurrency Exchange in 2019
Cryptocurrency exchange is a trading platform that allows users to make the purchase and sale, storage and exchange of cryptocurrencies. The principle of functioning of such platforms is similar to currency, commodity and stock exchanges – prices are determined by the market, on the basis of the “supply / demand” principle for each token.
In addition to cryptocurrency trading, cryptocurrency exchanges also provide the ability to store coins. However, we do not recommend storing your assets on stock exchanges, since it is very unsafe when you are not actively trading – you should store crypto assets in personal wallets. We have prepared a selection of the most reliable and cryptocurrency exchange development company, as of 2019. There are a huge number of cryptocurrency trading platforms, according to VanillaCrypto.
Criteria for choosing a reliable cryptocurrency exchange
If you are mining digital coins using cloud mining or on your own equipment, or using best trading bots crypto trading, you cannot avoid using cryptocurrency exchanges to convert cryptocurrencies to fiat (dollars or euros) or diversifying your investments by exchanging one cryptocurrency for another.
Immediately clarify if your ultimate goal is a one-way exchange (one-time purchase or sale) without subsequent trade, it is easier to use exchangers as using them is much more convenient and faster, and the commission, taking into account the withdrawal, is about the same as on crypto exchanges. But if you plan to make operations on a regular basis or purchase coins that are for TOP-10 by capitalization, then you cannot do without the help of a cryptocurrency exchange.
In order for you to identify the best cryptocurrency exchange, you should pay attention to the following important points:
- Reliability rating and reputation – The better reviews about the exchange on popular crypto forums, such as bitcointalk or Reddit, the better you will sleep at night. Raising funds on an exchange with an ambiguous reputation is not worth it. We advise you to listen to the advice and experience of other users and choose proven sites.
- The size of the commission – All cryptocurrency exchanges, like any other exchangers, charge a percentage of the commission for their services. It varies depending on the exchange, an average of 0.2%. Recently, exchanges do not establish a constant value of commissions, but make it dynamic: % of commission decreases with increasing trading volume.
- The number of trading pairs – The larger the choice of currency pairs offered on the exchange, the more tools for earning you have. It can be both the most popular highly liquid cryptocurrencies and less liquid altcoins. However, it must be remembered that quantity is not always the key to success. It is much more important to have an optimal set of trading pairs that can provide an effective and efficient trading process.
- Daily cash flow – The higher the trading volume of the exchange, the greater the prospects for earning you receive. An exchange with a trading volume of $50 per day is unlikely to provide you with high earnings. The high daily turnover of the exchange indicates its success, popularity and influence on the entire cryptocurrency market.
- Payment options – A wide range of payment methods gives you more options for operations with digital assets. So, some exchanges work exclusively with cryptocurrencies and do not support fiat money, while others allow the use of any monetary assets.
- User Verification Requirements – On different exchanges, the requirements for new users may differ: some set a tight framework and severely limit the ability of trading, others are more loyal to unverified users, but set a limit for daily trading volumes. There are also exchanges on which there is no mandatory verification of identity, which allows users to remain completely anonymous.
- Convenient user interface – The more tools on the exchange for analysis and statistics and the more comfortable to use them, the more quickly and efficiently the bidding process will go through. It is also important to have statistics on operations and tools for technical and graphical analysis, allowing you to correctly assess the market situation.
- The location of the trading exchange – Some sites operating in the territory of one state may be closed to users from other countries. Most often, these are Japanese and South Korean exchanges, which are very attractive for cryptocurrency operations, but accessible only to residents of these countries. Own shirt closer to the body – also works in the case of cryptocurrency exchanges and other trading platforms. After all, the better you understand all the processes carried out on the exchange, the more effective your trading will be.
- Help desk responsiveness – The faster and more productively it works, the more operations with cryptocurrencies you can carry out, as well as get professional help in case of a problem.
How can a beginner choose a cryptocurrency exchange?
Often, beginners or traders who are uninitiated in the secrets of blockchain technologies and cryptocurrencies will encounter many difficulties when starting work with cryptocurrency exchanges. Of course, the mechanisms, functionality and assets are quite unusual, however, you can figure it out.
It is recommended to choose a cryptocurrency exchange according to the following characteristics
Trade turnover (volume) is the most objective indicator demonstrating the current popularity of the site. If there are many traders, it means large volumes of trades, therefore, the quality of the exchange is good;
Reputation background is a necessary companion of any exchange project. It requires a competent interpretation of reviews, comments and other user experiences;
Commission fees – This parameter is seriously taken into account by all crypto exchanges, since it is very easy to attract new customers with such numbers. It is necessary to compare and calculate options. Any, even 0.005%, matters;
Geographical limits – There are cryptocurrency exchanges that establish access restrictions for residents of specific countries. Residents of other states may be denied service. An example is traders from the USA who are denied access to many cryptocurrency exchanges and not only;
Conversion courses – All cryptocurrency exchanges try to offer their own rates. Sometimes the difference reaches more than 11%.
If in developed markets arbitrage does not look like such an attractive investment, then in developing markets there are still enough inefficiencies available for trading by ordinary traders.
The trading of traditional cryptocurrency, as happened earlier with forex, is losing its meaning due to the costs of additional costs. In turn, there are a lot of simple patterns, which is why even primitive trading strategies should show better results compared to the foreign exchange market. In any case, the study of the nuances of trading on cryptocurrency exchanges is a promising and far-sighted direction that will certainly bear fruit.