Basic things to consider before choosing an exchange

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Everyday, the number of cryptocurrency users and exchanges keep increasing rapidly. The old users have lot of experience either through personal encounters or advise. While majority of new users focus on how to cash out their coin to fiat currency only, others always care to know the safest place to store them.

Exchange are where we store our cryptocurrency and also carry out other related services such as staking, swapping etc. There are 100s of cryptocurrency exchange (both centralized and decentralized) with Binance and Coinbase emerging the most used exchange.

Every exchange have certain unique features that usually attract user. But no matter the features, there are certain important things that should be considered before choosing an exchange.

Below are the basic things to consider

Authenticity:
There are millions of scammers in fintech world and the rate of attack in cryptocurrency is outrageous. This scammers have create several methods of scamming and one it is programming a fake exchange.
It is advisable to seek the guardian of a crypto currency expert before choosing any exchanges. If you don’t trust your advisor, I’ll advise you to check out their reputation on Coinmarketcap in order to find out.


Security: A cryptocurrencies exchange may be authentic but have a weak security.
Since the advent of cryptocurrencies, legit exchanges have encounter lot of attack including Binance. Coincheck exchange lost millions dollars worth of cryptocurrencies to hackers and it has still remain a big lesson to many people. Aside from penetration of users wallet, launching of fake coin (pump and dump) on exchange thereby getting away with investor fund. As such, it is advisable to know if the available coins are fake.

Lastly, if an exchange does not have a two-factor verifications process, it is not advisable to choose it


Purchase/Withdrawal protocol
Exchanges tend to accept deposits in their fiat account (bank account) in currencies that legalized it while others utilize payoneer cryptocurrenc or PayPal.

PayPal service (receiving of money) is restricted in some countries. A new user that does not have any initial cryptocurrency can not choose use an exchange that accept it deposit alone. Furthermore, payment and confirmation of deposit timeframe is necessary.

This is a reason why it is advisable to consider the protocol before opting for any exchange.


Listed cryptocurrencies:
Although every exchange supports Bitcoin, Tron, Ethereum, Dodge coin etc but there are some popular alternative that they usually lack e.g Steem coin.

The pairing of volatile cryptocurrency with Stablecoins in order to save users from volatility risk is mandatory for consideration. Most exchanges does not offer this services. As such, choosing an exchange that supports several legit cryptocurrency (both volatile and Stablecoin).

Complexity: Exception of expertise, it is necessary to check the complexity of an exchange before usage. Binance exchange have try to sort out this issue by having both Standard and Lite version interface. Another reputable exchange that have a nice interface is Coinbase and Kucoin.


Charges: While Kucoin reward their user with some tokens for transactions made, other exchanges charges are even higher than expected. So research about charges as well.


Other major thing to consider includes the nature of it tradings platform. Centralized Cryptocurrency exchange (CCE) should be the most considerate exchanges that a cryptocurrency novice should choose. Since they offer them an opportunity to retrieve their funds should in case of lost of passwords. As side from the recovery, most of the needed feature can be found on them.

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