First of all, congratulations on choosing to grab the crypto bull by its horn and deciding to catch the chance to ride the crypto uptrend.
There is no better time than the present to take advantage of this crypto rush and to dip your toes into the crypto sea.
The rise of the crypto has given rise to a lot of business paths like selling NFTs, becoming bitcoin miners, crypto MLM, and launching your own crypto exchange platform. But nothing can beat the people’s craze in getting their hands in the crypto themselves.
At Zodeak, we are well aware that among the sea of crypto exchange platforms, searching for the one that is right for you might sound tough. But don’t worry, we’re here to help. Whether you are an experienced trader or a newbie trader, we’re here for you.
Here are the top 7 factors you should check before picking a cryptocurrency exchange,
Oh, wait…before jumping straight into the factors you need to understand the basics, especially if you plan to work with cryptocurrency exchange scripts later on.
The basics
Cryptocurrency exchanges are online marketplaces where users buy, sell, and trade their crypto assets.
There are four crypto exchanges out there which are,
- Centralized cryptocurrency exchange (CEX)
- Decentralized cryptocurrency exchange (DEX)
- Peer-to-peer exchanges (P2P)
- Hybrid cryptocurrency exchanges (HEX)
Among those, CEX and DEX are the most popular ones, so let’s take a look at them.
- CEX: These exchanges are managed by a single entity, organization, or nation. They are centralized. Safety efforts like KYC and AML have to be finished. High security but little privacy.
- DEX: These operate in a decentralized manner, suggesting that no single person has command over the entire thing. High privacy but little security.
Now that we covered the basis let’s now focus on the factors,
7 Factors to consider before choosing a cryptocurrency exchange
Security
- When choosing an exchange it is important to verify its reputation and make sure to check if it complies with all the legal requirements of the local government.
- Find if the exchange has any history of security breaches, and if it does, check how they handled them.
- And it is important to check if they offer robust security features, like our cryptocurrency exchange script which comes with Two-factor authentication, cold storage, and encryption to ensure the security of the user’s crypto funds.
Fees
- Evaluate the cost of buying, selling, and trading cryptocurrencies in the exchange.
- Check that there are no hidden fees in the exchange that might not be immediately obvious.
- Reputable cryptocurrency exchange development companies like us offer transparent fee structures for the crypto exchange scripts.
Cryptocurrency options
- Check to see if the cryptocurrency you want to trade is supported by the exchange. Some exchanges, like our cryptocurrency exchange scripts, are the type that can be customized to support a wide range of cryptocurrency options. The same cannot be said for every exchange.
- Various cryptocurrency choices can be valuable in diversifying your investment.
Liquidity
- Higher liquidity typically suggests that the exchange has greater market liquidity. Make sure the exchange can handle heavy trading volume for smooth transactions.
- To ensure that there is sufficient liquidity, check the order book thoroughly for a specific cryptocurrency you’re interested in.
UI
- It is very important that the exchange platform is easy to use, especially if you are a beginner because a complex user interface can easily make people lose interest.
- And if you are an experienced trader, look for advanced trading tools like different market orders such as stop-limit, trailing stop, limit order, and advanced trading options like margin, and future.
Payment methods
- Check if the exchange accepts different deposit methods like cryptocurrency, debit and credit cards, direct bank transfer, and other payment methods. A genuine exchange will offer an extensive variety of options to cater to users from different regions.
- Make sure that you can withdraw your funds into your wallet by the method of your choice.
Customer support
- Check if the exchange offers a wide range of customer support options like calls, emails, and chatbots to resolve your issues.
- Search online to find more information on the responsiveness of your exchange of choice.
Additional factors you should consider focusing on
Here are some of the additional factors, you need to keep an eye on before choosing a crypto exchange,
- Geographical limitations: Some exchanges might not be available in every region, so make sure that the exchange of your choice is available in your country.
- Reputation: Search online to find what people are saying about your exchange, look out for reviews from trusted sources.
- Asset security and insurance: Some exchanges offer insurance to cover losses. Check what kind of measures your exchange of choice is taking to protect your assets.
- Transparency: Check the information your exchange of interest provides in their interface, such as their headquarters location, team detail, and regulatory status to make sure they are legit. A genuine exchange would be transparent.
- Additional features: To help users earn interest on their crypto assets, some esteemed exchanges provide additional features like staking, lending, and borrowing services. Being mobile-friendly, and offering API access are some of the additional features offered by some reputable exchanges.
Wrapping up
Look at that, you have just taken a baby step toward the path of your crypto journey. With the information you have gained from this blog, you can easily step into the crypto world with confidence. But remember, to sustain in the world of crypto, you need more knowledge about blockchain, cryptocurrency, and trading techniques.
And somewhere along the way, if you decide to be captain of your ship, and guardian of your kingdom by launching your own cryptocurrency exchange platform of your own. You should consider partnering with a cryptocurrency exchange development company, like us.
Zodeak leads the way in this rapidly evolving industry. And, as a well-established cryptocurrency exchange development company with extensive experience, we provide crypto exchange scripts to clients worldwide. We offer a customizable partnership model based on subscriptions to ensure that your goals are met within your budget.
If you have any questions, don’t hesitate to contact us.
Best of luck with your crypto journey!!
