Even if you’ve done your research and are confident you’ve found a crypto coin that’s heading straight to the moon, you’ll need to choose a cryptocurrency exchange to make your investment.
Every cryptocurrency exchange is different, so it’s important to compare your options and consider their features and benefits before making a decision.
Some of the questions you may want to ask yourself include:
Is the exchange easy to use?
Depending on how you choose to manage your crypto trading, you may prefer an exchange with an optimized user experience on desktop or mobile via apps.
Processing times could also vary between crypto exchanges, which could affect your trades.
If you’re relatively new to the wonderful world of crypto, an exchange that provides educational guides and walks you through the basic steps of trading could help make getting into crypto much simpler.
Does the exchange carry the coins you want?
No one crypto exchange offers every type of cryptocurrency available on the market. As well as classics like Bitcoin and Ethereum, new altcoins are being minted all the time.
If your focus is on trading particular coins, then you may want to make sure an exchange carries a wide range of different options before making an account.
What are the fees and charges?
Different crypto trading platforms may charge their fees in different ways, which could affect your crypto trading strategy. Some may charge a regular membership fee, or a percentage on each transaction that takes place over the platform.
Some overseas-based crypto exchanges may require you to make exchanges in US Dollars or even Bitcoin rather than Australian Dollars, and may charge currency conversion fees on top of any other costs. Plus, buying crypto through an overseas exchange could potentially make your taxes a bit more complicated.
Is the exchange legit?
We’ve all heard the horror “rug-pull” stories of investors being taken advantage of by crypto scammers. Consider doing plenty of research before signing up with a crypto exchange you’re not familiar with, especially if they haven’t yet had a chance to build a reputation and establish their credentials.
If the exchange is open about the identity and location of its owners and offices, offers support for Australian customers, and is registered with the Australian Transaction Reports and Analysis Center (AUSTRAC), then you should be able to be more confident in that exchange.
What security does the exchange offer?
Different cryptocurrency exchanges may use different methods for protecting their users, such as Two Factor Authentication (2FA) or biometric security (eg fingerprint or face scan).
The level of security you prefer compared to the ease of access to your portfolio may affect your choice of crypto exchange.