How to choose a cryptocurrency exchange 4 tips
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Instructions for beginners in the world of cryptocurrencies: how to choose a reliable exchange with a low commission.
By placing coins on a crypto exchange, you trust your assets in a completely unknown organization.
As of July 2018 There are several hundred exchanges whose servers are hosted around the world. But only a few of them can be trusted with confidence in their funds.
Let's figure out how to find “your" exchange, and not lose money at the same time.
How to choose an exchange for cryptocurrency trading: 4 tips
Instructions: how to choose a cryptocurrency exchange
1. Define a coin to trade
First, determine which coins you need to trade for. If it is Bitcoin, or one of the most popular altos (TOP-20), any exchange of the 1st class (tier-1) is suitable. Before you bring coins to the exchange, we recommend that you go through a complete verification. Then you will not have problems with the withdrawal of money from the exchange account.
If you plan to trade less popular alt coins, find out what exchanges they are represented on (coinmarketcap to help you). Choose the exchange with the largest volume, and do not keep funds on their accounts for longer than necessary (maximum 1 month). Small exchanges tend to close, taking all user assets with them.
2. Determine the amount of your funds
If you plan to operate in large amounts, opt for Binance, Okex, Bitfinex, Bittrex. Exchanges have a long history, high turnover, and value their reputation.
When working with small amounts (up to $200), the selection criteria change slightly. It is worth evaluating the commission (fee) that you will have to pay when buying / selling coins, as well as when withdrawing funds from the exchange. Focus on the withdrawal of BTC (as the most liquid cryptocurrency). The larger the exchange, the lower the commission. The commission is fixed and does not depend on the amount of the transfer (for $10 and for $1,000,000, you will pay the same amount). Typically, it ranges from 0.0003 to 0.002 BTC. Thus, the smaller the amount you withdraw from the exchange, the higher the commission will be.
Also note that large exchanges set a minimum amount for each trading operation (usually $ 5-7).
3. Read reviews about the exchange on the Internet
For example, the bitcoin talk forum thread. Make sure users trust her. In addition, you will be ready in advance for negative moments in the operation of the exchange website.
4. Withdrawal method
If you plan to withdraw fiat from the exchange (rubles, dollars, euros), make sure that the exchange supports operations with your card. Count in advance how much the exchange rate offered by the exchange will benefit you. Perhaps it will be cheaper to sell coins on a more popular exchange, and withdraw funds through a bot, a specialized website, or an exchanger.
General recommendations for working with cryptocurrency exchanges
Keep on your accounts only those funds that you intend to trade. The remaining coins should be kept on wallets.
Carefully follow the news of exchanges - sometimes coins are delisted (withdrawn from the exchange). In this case, you need to transfer altcoins to another account.
If you began to notice oddities in the work of the exchange (repair work has become more frequent, user complaints have appeared about withdrawals, etc.), withdraw at least half of the assets from this exchange