Hearing of cryptocurrencies more and more from your friends and family? Want to invest in some yourself? Well, the best place to start is a cryptocurrency exchange. They’re like stock exchanges, but for crypto coins.
Here is the Scott Jason Cooper Guide on how to choose a cryptocurrency exchange.
What Is a Cryptocurrency Exchange?
Cryptocurrency exchanges are platforms where you can buy, sell, or trade cryptocurrencies for fiat currencies, or even other cryptocurrencies. There are several hundred cryptocurrency exchanges operating in the world today, but like any beginner, you should choose the best.
A Basic Guide to Choose a Cryptocurrency Exchange
Cryptocurrency exchanges all have their own sets of rules. Most of them are the same which comply with some sort of international or local laws. However, their offerings, fee structures, and user interfaces can be wildly different.
That’s why you should err on the side of caution when you’re out to choose the one for you.
Be Cautious When You Choose a Cryptocurrency Exchange
You need to be cautious when you first choose an exchange for yourself. Remember that you’re a beginner and can’t afford to take too many chances with your money. Plus, the cryptocurrency space isn’t exactly well regulated. That means there’s a lot of room for you to lose money if you’re not careful .
Scams and frauds and pump and dump schemes are all features, not bugs, of the crypto space right now. Hence, you should go with the crypto exchanges out there which are the most recognizable and trusted.
You should also choose an exchange which is based in a country where there are regulations. That way, you can be a little more sure that your money is safe. Crypto exchanges in countries famous for their financial crimes are very risky investments.
Do Your Research Before You Choose a Cryptocurrency Exchange
Right now, there may not be a lot of credible research on obscure crypto exchanges, which is why you should always be cautious about which exchanges you choose.
Choose an exchange which is based in a country with strict regulations about crypto trading. Also, choose a crypto exchange which is known for its reputation around the world. Right now, you shouldn’t choose a cryptocurrency exchange which is new or currently building its reputation.
Remember, risk taking is not on the agenda right now.
Choose a Cryptocurrency Exchange with Higher Security
Right now, you shouldn’t worry about how much money you can make through an exchange. You should worry about losing the money you already have. Hence, choose an exchange which is notorious for its security features.
Go for an exchange which has all sorts of 2-step verification and authentication protocols built in. Go for a cryptocurrency exchange which has options to encrypt your data and which has other privacy features built in.
You obviously can’t blindly trust any exchange, no matter what they promise in their terms of service. However, it’s better to trust an exchange which has several security features.
Also, choose a crypto exchange which has an option to keep your wallet offline. While online wallets may be easier to sync to and operate, offline wallets are undoubtedly safer.
Beware of Fees and Pairs When You Choose a Cryptocurrency Exchange
After you’ve done your research and settled on an exchange, remember to check the fees and the exchange rates. The fees can vary wildly from one exchange to the other. Hence, choosing one which has all the best security features and charges less money will be the best option.
Two major factors which can help you find the best exchange in regards to fees are the currency pairs. Some exchanges will include currency pairs for a lot of cryptocurrencies but offer high fees. Others may do the opposite.
Choose a Cryptocurrency Exchange With a User Friendly Interface
This is very important for beginners. If you don’t choose an exchange that has an easy-to-use interface, you’ll be stuck reading tutorials or asking for help. Remember that your first account is about exploration and experimentation rather than making money. You should know how to use it.
Scott Jason Cooper’s Best Cryptocurrency Exchanges For Beginners
These are the 4 most popular and user-friendly cryptocurrency exchanges recommended by Scott Jason Cooper Ice for beginners around the world.
Coinbase is one of the world’s most widely used cryptocurrency exchanges. It’s great for trading if you live in the US. It processes over $2 billion in cryptocurrency volumes a day. That may be far less than Binance (see below), but it’s big money nonetheless.
It also has a very user-friendly platform which makes things easy for beginner traders. It’s also a publicly listed exchange and offers insured custodial wallets for investors.
Binance is the most popular and largest cryptocurrency exchange in the entire world. It has a trading volume of over $13 billion and offers traders access to hundreds of cryptocurrencies and tokens. It’s also available to citizens of over 100 countries globally.
Of course it has regular spot trading for its customers, but it also has staking, derivative trading services and more. Binance is the safest and most reliable option for beginner crypto traders. If you have to choose a cryptocurrency exchange, you should choose this one.
CEX.io is a leading cryptocurrency exchange with an excellent user interface. It’s great for beginners. It also offers a wide array of cryptocurrencies for its users. It’s also very famous for its customer service.
CEX.io was also famous for creating GHash.io, a bitcoin mining pool which once controlled 51% of all Bitcoin computing power.
Kraken is the oldest cryptocurrency exchange on this list. It has been in operation since 2011, and is now a decade old. Not many cryptocurrency exchanges can claim that just yet. It’s a platform which is admired by various trading services and traders alike.
Though not publicly listed yet, it is going to be very soon, just like Coinbase. The platform gives users access to hundreds of cryptocurrencies. Users can trade for other crypto coins and tokens or with fiat currency.
Using this information, you can start trading bitcoin on cryptocurrency exchanges right away.