Crypto Exchanges 101 — How to Pick a Good One
Now that we’ve acquired our Bitcoin, Ethereum, Ripple, Litecoin and Stellar, what can we do with it?
Sure, you could hold on to it while hoping for its value to boom, or what the industry would term as HODL (Hold On Dear Life), but where’s the fun in that? With all the free ICO Tokens you’ve accumulated from Airdrops, there must be a way to monetize it. This is where a good cryptocurrency exchange come into play.
Just like the stock exchange, there are things to look out for when picking a cryptocurrency exchange to trade on. For those who are still new, here are some tips to get you started:
- What’s the verification process like?
For the uninitiated, the term for this would be KYC (aka Know Your Customer). This is an important security measure in verifying your identity — similar to setting up a bank account where the teller has to authenticate your particulars. Note that the time taken to process the required documents varies between different exchanges. Nonetheless, it is imperative that the exchange you choose has security measure in place.
2. Is it easy to purchase cryptocurrency from the exchange?
For ease of trading, pick an exchange that allows you to purchase cryptocurrencies using fiat currencies. There are various methods of payment– PayPal, credit cards, debit cards, bank transfer.
You should also note the duration it takes for your transaction to be processed. Remember, every minute counts in the crypto sphere.
3. What are the supported cryptocurrencies?
Most of us know Bitcoin and Ethereum, but there are thousands of other cryptocurrencies. Some platforms also trade altcoins. Pick an exchange that supports all the cryptocurrency tokens that you want to purchase or have already obtained from various Airdrops.
Look out for these key things when monitoring and evaluating which cryptocurrencies to invest in:
- Current Price
- 24 hour change
- 24 hour trading volume
- Market Cap
- Supply Issued
4. Is it easy to use?
With time, most of us will get the hang of the site. But a good exchange should already be user-friendly right from the start. No one likes having broken links or slow loading time.
Find one with:
- An intuitive user interface
- A platform that loads swiftly with no lag
- Easy-to-use functions that keep you informed at every step
- A highly secured exchange that keeps your funds in cold storage
5. What is the fee structure?
Fee structures differ across exchanges, so take the effort to do some research and comparisons.
Some exchanges charge a low transaction fees in sales, others, such as Exonium may offer zero trading fees for a limited period of time. Some exchanges issue their own tokens for users to complete transactions, effectively discounting fees for the users.
Essentially, every exchange is unique and useful in its own ways and you will have to pick what suits you best. Some may prefer to use multiple exchanges to maximise their crypto trading. Above all, the most important aspect of an exchange should be its security and reliability.
What is Exonium
Exonium is a multi-cryptocurrency exchange platform offering zero transaction fees for a year to its first 250,000 users. The exchange is certified by Group IB, one of the world’s best cyber-security audit companies. Users can trade top tokens on Exonium instantly in a click with its 1 million tps capacity.