There are numerous platforms available for today’s aspiring cryptocurrency trader. But how do you know which one to choose? Do you go for one of the biggest players in the field, or select a smaller exchange with some nice perks? And how do you know if you can really trust them with your cryptocurrency assets?
Trust is a major concern when it comes to cryptocurrency exchanges. There are a few things that could go wrong, and we’ve seen many of them play out over the last few years:
- Exchanges shut down for regulatory non-compliance
- Exchanges revealed to be Ponzi schemes or other forms of scam
- The extremely high-profile case of Quadriga CX, where the CEO’s death resulted in the loss of access to the funds stored on the exchange
- Loss of funds due to hacks and phishing
But even aside from these major issues, there are other minor issues to be concerned with when choosing an exchange. Prospective traders need to consider how many trading pairs the exchange gives access to, how much liquidity it has, the trading fees, ease of use, and so many other factors. With all of these points to consider, how can you determine what is the best exchange for you?
Crypto exchange reviews are a good place to start your research
Before choosing a cryptocurrency exchange, find a reliable source for unbiased exchange reviews. Ideally, you’ll want to find a site that reviews the exchanges on multiple metrics – many reviews will only look at one factor, such as volume (which has recently been shown to be artificially inflated on most exchanges) or security (which is incredibly important, but doesn’t tell you much about what your trading experience will be like,