CryptoTips: Picking a Cryptocurrency Exchange

  • Alex Morris

    Whether you are a day trader or a Hodler, at some point you’ll have to use a cryptocurrency exchange

CryptoTips: Picking a Cryptocurrency Exchange

Cryptotip #1:

Make sure that any exchange you select is reputable. You will actually be giving custody of your digital tokens (or your fiat money) to the exchange for a time, so make sure they won’t steal it. Do your research and preferably pick a big exchange that’s been around for awhile.

Cryptotip #2:

Security is paramount; make sure the exchange you pick has a reputation for keeping fund secure. Hackers can strike at any time, and your chosen exchange should have highly secure systems, keep most user funds in cold wallets and use industry best-practices. They should also offer two-factor authentication (2FA) which requires you to enter a code generated by your phone when logging in, for extra security.

Cryptotip #3:

Understand the exchange’s fee structure. Particularly if you are going to be day trading, fees can make a huge difference in profitability. Be careful of so-called “zero fee” exchanges because some make up for their low or non-existent fees by charging a “spread” or a large withdrawal fee. Exchanges have to make money some way- make sure you understand how!

Cryptotip #4:

Day traders will want access to advanced order types, like stop-loss, stop-limit, take-profit and others. Make sure the exchange you choose has the functionality you need.

Cryptotip #5:

Many users of exchanges will find themselves needing customer support at some point. Make sure you have a way to get in touch with customer service representatives and that your exchange has a reputation for quality and speedy service.

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