Things to Consider While Choosing a Crypto Exchange
The wave of global cryptocurrency acceptance has turned out to work in cryptocurrencies’ favour. According to various global exchange platforms, the number of people signing up for new accounts is meteoric. Although cryptocurrency is decentralized and doesn’t require any third party to facilitate any transaction, crypto exchange platforms have been filling the space for those who don’t feel comfortable with direct trading. Exchange platforms are like an intermediary or marketplace where buyers and sellers of different cryptocurrencies connect to facilitate crypto trading.
Many people feel it is safe to conduct trade through cryptocurrency exchange platforms as they verify each account before letting them trade. It imparts a sense of security and reliability. But with the number of cryptocurrency exchange in India and abroad soaring, people are finding it challenging to pick an ideal platform. If you couldn’t start your crypto trading journey because the various options confuse you, this guide is here to help. By the end of this guide, you’ll have a definitive list that will help you pick the best exchange from the rest.
List of Things to Look While Selecting a Crypto Exchange
Crypto exchange platforms worldwide facilitate transactions worth billions of dollars. Since every penny counts, you wouldn’t want to purchase cryptocurrency through an exchange that is shady and highly volatile to hacking. Hence, to help you pick the best crypto exchange platform, we’ve listed below all the things you must check to facilitate safer crypto transactions.
Check the Modes of Payment Accepted on the Platform
To enjoy smooth and quick transactions, you should ensure that the platform you’re considering accepts multiple payment options. The more payment options an exchange offer, the better. Some exchange platforms only accept credit cards, which can be a problem for those who don’t own one or are not comfortable using them. As an investor, you should side with crypto exchange platforms that accept payments through multiple mediums, like debit cards, credit cards, PayPal, direct bank transfers, etc.
Willing crypto investors residing in India should search for exchange platforms that accept UPI as a valid payment method because it is more convenient. Since a significant population has started relying more on UPI for online payments, it won’t be challenging to identify platforms that accept it as a payment option.
Shortlist Platforms that Have Mandatory KYC Requirement
This point might answer your question if you’re wondering how to buy Dogecoin in a secure environment. Although most popular crypto exchange platforms have made it mandatory to own a KYC-verified account to begin trading, it is not the case with all the platforms. You can easily come across platforms that provide instant account approval even without submitting ID and address proof. It can great for people willing to trade anonymously, but it isn’t a safe bet.
The only way to reduce the chances of fraud is by ensuring you buy cryptocurrency from a verified account. It can only be done when you initiate all your trades via exchange platforms that make KYC account verification mandatory.
Double-check the List of Supported Cryptocurrencies
Not all crypto exchange platforms are the same, so you have to be careful while doing research from your end. Suppose you’re planning to become an active cryptocurrency investor and trader that buys and sells a range of cryptocurrencies. In that case, checking the full list of cryptocurrencies supported by the particular crypto exchange platform is crucial. If you want to maintain a highly diverse portfolio, side with an exchange platform that supports Bitcoin, Ethereum, Dogecoin, Tether, Ripple, Shiba Inu, MonaCoin, Solana, and others. The bigger the list of supported cryptocurrencies, the better it is.
Transaction Fee & Transaction Speed
Of all the various factors, two of the most important things to consider in a crypto exchange are the transaction fee and the transaction speed. Both can significantly influence your crypto trading experience, so be wary of the two. A crypto exchange platform charges a fee on every transaction, which can be very high for some. If you’re just starting out and don’t have much investment to begin with, we’d suggest starting with an exchange platform that charges lower transaction fees.
Besides the transaction fee, you should also pay attention to the transaction speed. Since cryptocurrency value fluctuates in real-time, even the slightest delay in processing your transaction can be disastrous. So look for unbiased reviews from existing exchange users online, and go ahead with the platform that offers relatively higher transaction speed.
Start Your Cryptocurrency Trading Journey Using Reliable Exchange Platforms
You may be excited to start your crypto trading journey, but it shouldn’t be done in a hurry. Enough research should be done before selecting the right crypto exchange platform, as it will hugely influence your trading journey. Luckily, choosing the right platform is not challenging using our tips shared above.