How to Choose Crypto Exchanges: Everything You Need to Know
A media poll from March 2022 shows that 1 in 5 Americans have traded cryptocurrency.
One can only expect when an updated poll is conducted in March of this year, we’ll see this number go up. Cryptocurrency is here to stay and now’s the best time to begin trading with cryptocurrencies.
But before you choose your crypto, you must first choose crypto exchanges. This makes all the difference in having a successful experience with your crypto trading strategy.
Here’s how to consider options for crypto exchanges:
What Can You Own?
The first thing to consider is whether you can buy, sell, and trade a variety of cryptocurrencies on the exchange.
The amount of cryptocurrencies available is really up to you. Some investors like platforms such as Coinbase because they offer almost every single cryptocurrency available.
Other investors only believe in Bitcoin and only want to choose a platform that allows this particular option. You have to decide what you want to own and then see if your exchange allows it.
Does It Follow the Law?
We might all think that the laws surrounding crypto are complex and burdensome but you must choose crypto exchanges that follow these rules.
For example, some jurisdictions will require a Bitcoin tax. If you use a cryptocurrency exchange in that jurisdiction, make sure it doesn’t skirt around the laws.
You want to choose a cryptocurrency exchange that offers some level of Know-Your-Customer or KYC. You’ll have to provide basic ID verification to know that you’re working with a legitimate cryptocurrency exchange.
What’s the Reputation?
The next step is to look at the reputation of the cryptocurrency exchange. Make sure you research it online to see what others are saying.
There should be consistent positive reviews on the exchange. Make sure you reach out to your network to ask them which cryptocurrency exchanges they prefer to use.
You should also ensure that the cryptocurrency exchange is a registered business. Look up the business with services such as the Better Business Bureau to check its legitimacy.
Customer Service
The final step is to assess the customer service of the cryptocurrency exchange. If the exchange doesn’t have high-quality customer service, then you should ignore it.
Call, email, or chat with a customer service agent. Ask them about how the exchange works and ask whatever questions you have. If they are patient with you and can answer your questions, then this is a green flag.
If they’re eager to finish the conversation and don’t know answers offhand, ignore this exchange altogether.
Now You Can Choose Crypto Exchanges
Now you can choose crypto exchanges from the criteria stated in this guide.
You want to consider which cryptocurrencies you can own. You have to decide which ones are worth your investment.
You must also make sure that the exchange follows the law and follows KYC regulations. Make sure the exchange has a good reputation and research if it’s a legitimate business.
Finally, ensure that it offers high-quality customer service and then you can decide whether you want to use it or not.
You can read even more articles about cryptocurrency investing on our blog.
