In addition to fees, consider the following when choosing the best cryptocurrency exchange for your needs:
- safety
- trading volume
- educational resources
- If the virtual currency you want to purchase is listed on an exchange
safety
As cryptocurrencies grow in popularity and value, they have become a big target for hackers. Major exchanges such as Binance and KuCoin have been hacked, resulting in tens of millions of dollars in losses. Exchanges often reimburse those whose coins were stolen, but no one wants to be in that position in the first place.
You can minimize your risk by spreading your cryptocurrency purchases across multiple exchanges. Alternatively, make it a habit to move your crypto holdings from the exchange's default wallet to your own secure “cold” wallet. These are non-internet-connected storage options, so they're nearly impossible to hack, but you'll need to carefully record your passcode. Failure to do so may result in permanent inability to access your cryptocurrencies.
available coins
Carefully consider the cryptocurrencies available on a particular exchange. It may be perfectly fine to use a cryptocurrency exchange that only trades a few coins. On the other hand, if you are a cryptocurrency enthusiast, you may want to access all 600+ available on Gate.io.
trading volume
Coin availability alone is not enough if no transactions take place. Ideally, you want to make sure that your target coin has enough trading volume to ensure liquidity so you can easily trade your coins for dollars.
Sales costs may be higher in markets with lower distribution volumes. If you place an order when there isn't much volume, it's called slippage. You may end up buying at a higher price or selling at a lower price than you would like.
If you are an advanced crypto trader, you need to make sure that your preferred exchange offers your desired margin and trading types such as limit orders, which can prevent slippage by setting tight prices. There may be. Please note that the trading types involved in the latter are still evolving in the US, so the offerings of different exchanges may change over time.
educational resources
If you're just getting started with cryptocurrencies, look for an easy-to-use platform with plenty of educational resources to help you understand this complex and rapidly evolving market.
accessibility
Finally, don't assume that just because you can access a website, an exchange is available in your country or state. Many state and federal governments are still considering how exactly they want to treat virtual currencies from a legal and tax standpoint.
– Mikkel Morch, ARK36 Founder
