The number of cryptocurrency exchanges where you can exchange bitcoin to USD or Euro to Monero or dash is rather big, which makes the process of finding the most suitable one a real challenge. You need to consider a row of factors to make sure the exchange you’ve chosen meets your requirements. Here we are going to have a close look at all of them in order to help you understand what is really important when selecting a right cryptocurrency exchange for you.
The first step for a beginner is finding the exchange which supports money depositing (GBP, EUR, USD). Thus, in the first turn, you need to register at an exchange in your home country which allows converting money from your bank account to a digital currency (BTC, Ripple, BCC, Neo, etc.). Before you are allowed to do this, you will have to verify your account by providing information that proves your identity.
You should bear in mind that not all crypto exchanges accept fiat money. Some exchanges accept only coins for depositing (usually the most known one - Bitcoin). So if you want to buy other crypto coins, Bitcoin may be your gateway to buying them. So if you wish to purchase other coins, you need to perform the following sequence of actions:
1. Opening and verifying your account in a local cryptocurrency exchange
2. Depositing funds from your bank account to your digital currency exchange account
3. Starting purchasing Bitcoins
4. Joining a crypto exchange that has lots of other coins available and verifying your account.
5. Transferring the Bitcoins you have acquired from your domestic exchange to the new crypto exchange account and exchange the Bitcoins to other crypto coins.
Now let’s point out all important factors to consider when selecting a crypto exchange:
1. Available Coin Pairs
Lots of crypto exchanges have a limited number of cryptocurrencies, sometimes offering just a few, like the most popular ones Bitcoin and Ethereum. Availability of a large number of coin pairs gives you better choices, so you should always check how many coin pairs a certain exchange has to offer.
Liquidity means easiness of buying and selling process in the market. When the number of sellers and/or buyers is big, the liquidity is considered to be high, which affect positively on transactions’ speed and more beneficial price setting.
3. Trading fees
Another vital thing to consider when choosing an exchange is trading fees. Lower fees on selling and buying can to certain extent minimize your risks, especially if you are an active participant in transactions.
4. Ease of use
No need to explain why the interface of a crypto exchange is important. If the site structure is clear and simple, and all necessary tools are a click away, the chances for confusion are low and the time to find your way around the site is minimal.
Keeping your coins safe is crucial for any trader, as noone wants their assets to be at risk. That is why you need to ensure a crypto exchange you plan to join uses reliable security mechanisms. Email encryption and verification, the presence of 2-factor authentication and possibility to keep deposits in cold storage are good signs that witness of proper security measures undertaken by a digital currency exchange.
6. Customer support
The value of responsive and professional support cannot be underestimated. In case of any problems that may arise during the verification process, exchanging, buying or selling cryptocurrency, any issues with technical performance, the availability of helpful support representatives will save your time and nerves.
If you want to enter the crypto world joining a right crypto exchange will be your key. As any activities with digital currency involve risks, make sure you the platform you choose meets your requirements for safety, usability and any other points that are important to you.
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