There are many coin exchanges across the country and internationally that allow one to buy blockchain coins, currencies and tokens but finding the right exchange can be tough especially with the way new ones are popping up. Also as you go to pick up one, there could be a number of factors that you have you would want to consider in ensuring that you’ve opened the right exchange and are in here to make maximum of your investment rather than loosing out due to high charges or missing out on certain coins which your exchange doesn’t provide you with.
The majority of exchanges in India offers only the top coins, which usually consists of Bitcoin, Ethereum, Litecoin and BTC cash but there are many international exchanges which provided more than 50 pairs of currencies. Listing down a few point, for new as well as seasoned investors, that one would want to consider for picking the right exchange.
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Fees: The coin exchanges usually have basic fees known as Trading fees are the ones that are charged by the exchanges to help you buy and sell coins. Most exchanges also take fees to withdraw coins from one wallet to another.Lower the fees the better it is especially if you’re a constant trader. It is important to look at the fees of the exchange you choose, to see if it’s comparable to other exchanges. But one should not just look at cheaper fees and lose out on some key features.
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Liquidity: With fees being the first, the next most important criteria in picking up the exchange is liquidity. Liquidity refers to the ease of buying/selling in the market. A high liquidity means that there is a good number of buyers/sellers. High liquidity is good as it leads to better price discovery and it allows you to transact faster.
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Security: The security mechanism used by the exchange is very crucial ensuring the asset you purchased is safe. The security system should be beyond the reach of hackers, 2 factor authentication and email verifications are one of the few examples of critical factors that one should consider. It is considered to transfer the coin to a safer wallet after you have acquired them but still a better security mechanism is really required. Some good exchanges also have faced security breaches by hackers and investors have lost millions of dollars in the hands of these attacks ranging from Mt Gox of Japan to very recent attacks on Bitfinex.
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Ease of Use: The user interface of the exchange should be easy to use and clean to avoid complexities, misunderstanding and errors. Having the necessary indicators at the tip of your fingers and the ease of steering through the platform should make it easy for anyone to use the interface. Also, you may want to consider the exchanges that give you access to the move like the one which has good customer support, allows you to trade on-call and maybe has a mobile app.
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Good Customer Support: Having a good customer support would save a lot of time and also chances of errors. Issues on your confirmation procedure, deposit/withdrawals, funds position and trading orders should be solved quickly by the exchanges, or it could cost compromise you time, money and well-being.
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Coin Pairs: There are only a handful of exchanges that offer a wider variety of coins. A more varied choice of coins accessible is better as it gives you more options of coins to purchase
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Transparency of Transaction: How are your orders executed at the exchange is really important and if there is transparency the chances of losing out or fake transactions reduces giving you the real experience and the best price to trade without errors and fraudulent activities.
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Mode of payment supported: One of the other factors to look into the exchange is the mode of payment it considers. Very few exchanges allow all modes such as debit card, credit card, bank transfers and bitcoin wallet. A lot of exchanges though only allow cryptocurrency deposits and withdrawals. So if you are a new trader or investor and don’t hold a cryptocurrency having an account in a wrong exchange may not allow you to invest in coins.
