• Blog
  • How To Choose The Best Crypto Exchange For You

How To Choose The Best Crypto Exchange For You

Share article

Many people are intimidated by crypto investing. They consider trading in Bitcoin and other cryptocurrencies risky or confusing. This is because the cryptocurrency market has been presented to most people as a very technical financial market.

However, that is not necessarily the case. Just as with any type of financial investment, it’s important to research before you start trading. But with the right tools, you’ll be a crypto trader in no time, as long as you follow the right steps.

Following the right process starts by choosing the crypto exchange to use for your investment goals. Cryptocurrency exchanges are your gateway to the crypto market. Here at EndoTech, we’re featuring the best digital currencies on the market and suggesting some criteria you can use to examine each one as you evaluate how to choose the best crypto exchange for you.

What Are The Criteria For Choosing Crypto Exchanges?

Platform Authenticity and Security

Research your chosen exchange to determine whether it is a legitimate and secure trading platform. The authenticity and security level of a platform will help determine whether your funds would be safe there. Scam platforms have cost traders billions of dollars. Therefore, ensure you check the reputability of the platform and the different security protocols to prevent a security breach they have in order to protect your data and money.

Crypto Method of Purchase

There are different ways of buying cryptocurrencies. There are different ways to pay for things online. Some platforms support deposits by Bank Transfer, some use PayPal, some accept credit and debit cards and some only accept cryptocurrencies. Choose the payment option that best suits your needs. To start off, it is important that you choose a crypto exchange that accepts fiat currencies because it makes it easier for you to enter the market. You want your crypto transactions to be smooth and convenient. Take this into consideration as you choose a crypto exchange.

Choice of Supported Coins and Tokens

Almost all crypto exchanges support Bitcoin (BTC) and Ethereum (ETH). However, there are hundreds of cryptocurrencies, and some people want to gain exposure to more than just Bitcoin and Ethereum. You need to know which cryptocurrencies and tokens an exchange supports before choosing one. Because it offers more cryptocurrencies than other exchanges, Binance is the most widely used exchange.

Taker Fee Structure and Other Payment Structures

The transaction fee structure differs across various crypto exchanges. For example, fees can be applied to crypto trades and transaction speed to name a few things to look for. Understanding the fee structure of a crypto exchange is crucial as it allows you to make educated transaction choices. Ensure that you choose a platform that doesn’t have hidden transaction fees. You can choose a platform that offers flat transaction rates or those with a more flexible structure. You can also help reduce your fees by using an automated AI exchange to prevent you from impulse trades.

Learn more about How EndoTech’s Automated AI Algorithms Work here.


Crypto Exchange Platform

The user experience is a very important criterion for your success as a cryptocurrency trader or investor. An exchange with an intuitive interface and good user experience makes it easier to trade the cryptocurrencies available. However, the definition of a user-friendly interface is subjective, and people enjoy various types. Furthermore, ensure to check the customer service and other customer-related functionalities offered by a crypto exchange. The user interface is vital for the best experience and the easier to access the platform, the better.

Centralized vs. Decentralized Exchanges

In general, cryptocurrencies fall into one of two categories: centralized exchanges and decentralized exchanges. Each has advantages and disadvantages.

Centralized Exchanges

A centralized crypto exchange (CEX) is managed by one company. A centralized exchange makes it easy for new users to start investing in cryptocurrencies by allowing them to convert fiat currencies, like dollars, directly to crypto. Most crypto trading takes place on centralized exchanges.

Some crypto enthusiasts object because they believe centralized exchanges go against the decentralized ethos behind cryptocurrencies. Worse for some crypto users, the organization may require users to comply with Know Your Customer (KYCs) rules. They require each user to divulgate their identity, much as when you apply for a credit card.

Centralized exchanges have one big problem: they’re vulnerable to hacking. A CEX keeps the crypto traded on its exchange for at least a few minutes while trades go through. This raises the risk of hackers stealing the assets.

To address this risk of theft, centralized crypto exchanges have increased their security measures. They now store most customer assets off-line and take out insurance policies for crypto losses in the case if hacking.

If you want the convenience of a centralized cryptocurrency exchange, you can reduce the risk of losing your coins by transferring them to a separate, off exchange wallet.

Decentralized Exchanges

DEXs distribute responsibility for facilitating and validating crypto trades. Anyone who wants to join a decentralized exchange (DEX) network can certify transactions, just like cryptocurrencies. This may help increase the accountability and transparency of exchanges and ensure they can continue to operate even if their creators go bankrupt.

The trouble is that decentralized exchanges are much less user-friendly than centralized ones. Not only from an interface standpoint but also in terms of converting currencies. Decentralized Exchanges (DEX) don’t always allow users to deposit fiat currency and exchange it for cryptocurrency. You must either already own cryptocurrency or use a centralized exchange (like Coinbase) to buy cryptocurrency. Then, you must use a decentralized exchange (DEX) to trade your cryptocurrency for another cryptocurrency.

You may also engage in direct peer-to‑peer trading. It may take longer for you find someone who wants to buy what you’re selling, and if liquidity is low, it may be difficult to buy or sell a small volume of cryptocurrency at a good price.

For more information on choosing the best crypto exchange platform checkout EndoTech’s Algo’s Algorithm.

Share article