Here is what you should consider when choosing a Cryptocurrency exchange | 5% to SL Charity

The world of Cryptocurrency has grown exponentially over the years. Currently, there are over 5000 Cryptocurrencies. These have led to the need of Cryptocurrency exchanges.

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Plenty of Exchanges have cropped up in order to cater for the ever increasing demand for buying and selling these Cryptocurrencies. These have boosted the value of Cryptocurrencies through facilitating the easy and quick transaction process. In the process many people have been attracted to the Crypto world generally participating as investors and traders.

There are various Cryptocurrency exchanges. These are broadly divided into two categories; Centralized exchanges and Decentralized exchanges.

The following are some of the major factors a Crypto investor ought to consider when choosing a Cryptocurrency exchange:

Geographical location & restrictions
Before considering signing up and trading on an exchange, it’s important to know whether your country is among those that are covered by the exchange. Exchanges have to abide with the Country’s laws and restrictions on crypto and Blockchain. They also have to be certified and authorized to operate in a particular country.

You will therefore have to cross check with the exchange to see whether your country is catered for so that you avoid issues of failing to withdraw your funds from that exchange.

For example the Binance exchange is freely accessible by almost all countries in the world except those that are on sanctions such as North Korea, Iran, and Syria.

Transaction fees
Different exchanges charge different trading fees. As a crypto Investor, you will want to look out for an exchange with lower fees so that you can maximize on your profits. Going for an exchange with higher fees can eat up into your profits. It’s therefore, wiser to go for ones with cheaper transaction costs.

Volume and liquidity
Centralized exchanges are highly liquid exchanges with large 24hour trading volumes. As a Cryptocurrency investor, liquidity and trade volume is one of those aspects you will definitely want to look at. Reason being the higher the liquidity on an exchange makes it easy to buy and sell your Cryptocurrencies easily in just a few seconds.

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Security, anonymity and support
There are plenty of phishing sites and scams in the Crypto world. You will need to check out the crypto exchange history to see whether it has had any security breaches and what measures has it put in place to ensure the security of its clients’ funds who keep transacting on its exchange. You can interact with its community as you ask questions regarding the security standard of the exchange.

Does the exchange have a 2 factor authentication? That is Google authentication or SMS authentication. These are to make sure that you regulate on the likely hood of your account being hacked by the malicious actors.

User interface & ease of usage
Is the exchange easy to use? Exchanges are designed with varying user interfaces and have their own exclusive procedure of usage. You will want to look out for an exchange that is easy to use so that you avoid making mistakes in your trading that may turnout in losses. You will also want to save your time on an easy to learn exchange.

In conclusion, I currently use Huobi and yellowcard.io exchanges reason being, I have found these fit for usage in my Crypto trading career based on the above mentioned factors.
zero fees.