To choose the best online cryptocurrency exchange, you should check its performance in the following 9 criteria:
- Security
- Liquidity and volume of transactions
- Support
- Fame and reputation
- Transaction fees
- Insurance
- Deposit and withdrawal limits
- Transparency
- User experience
Security
One of the basic and most important features of a safe and reliable exchange in the field of digital currency is to have a high-level security system to reassure investors about the security of their assets.
The bad news is that no exchange is 100% safe and finding a safe and secure online cryptocurrency exchange is not that easy, but the good news is that despite all these obstacles, you can find a cryptocurrency exchange that has a high percentage of security (eg 99.9%).
Provided that you define the right factors for the security of an exchange.
You may try to consider examples for the concept of security in an exchange, for example, the longest history and the largest number of customers, etc.
In addition to these items, we suggest you pay attention to the following values:
- Your chosen exchange should have cold storage for most assets.
- The selected exchange should have a multi-signature wallet and support two-factor authentication.
Liquidity and volume of transactions
The best online digital currency exchange must have a high volume of transactions.
Otherwise, if you want to do a big transaction, you will have to do several small transactions to do this transaction, as a result, your time and expenses will increase.
The more the number of users or the amount of assets kept in a digital currency exchange, the higher the liquidity and the volume of transactions.
Support
Entering the world of cryptocurrency makes people face many risks and questions.
The speed of change in this market is very high and this proves the necessity of a strong and fast support service in a digital currency exchange.
Otherwise, and if you have to wait for a few days to receive a simple answer from the support of the exchange, you may face irreparable financial consequences and losses, so the speed of action, customer satisfaction, and the priority given to answering customers’ questions and problems can be considered as examples of the good performance of an exchange in providing support services.
Fame and reputation
Checking the opinions of current or former customers and knowing their level of satisfaction is always the first and best way that you can use to ensure the reputation of a digital currency exchange, for this purpose, you can also consider the number of users who trust and work with this exchange.
Transaction fees
To perform any transaction in an online digital currency exchange, you must pay a fee to the exchange.
Naturally, the lower the fee charged by an exchange, the lower your costs will be. Some exchanges have their own exchange tokens, and if users have that token in their wallet, they pay a lower fee as a fee to the exchange and pay the same low fee in the form of the same token.
Insurance
Some cryptocurrency exchanges insure users’ assets, thereby protecting investors’ funds against risks such as hacking or employee theft.
Asset insurance policies are different in each exchange and you should do independent research to know the details of insurance in a particular exchange, also some exchanges do not support such a service, however it does not mean that they are not reliable and valid.
Deposit and withdrawal limits
Finally, one day you are going to withdraw the assets and capital that you keep in an online digital currency exchange. Even if you don’t have such a plan in mind right now.
Most exchanges do not have any floor or limit for deposits. However, some of them may have restrictions on withdrawing capital or depositing it within a certain period of time, which means, for example, daily users can withdraw up to n dollars of fiat or crypto currency, so if you are into large deposits and withdrawals, you should go to an exchange that does not have restrictions on withdrawals and deposits.
Transparency
Pay attention to the level of transparency that an exchange has to its users.
An authentic and reliable exchange must be transparent and honest with its users about issues such as the amount of fees, the time required to complete transactions and transactions, the jurisdiction in which it operates, its structure and security level, etc.
Otherwise, we suggest you avoid cooperating with such an exchange.
User experience
The user experience or UX in an online digital currency exchange is important because you should feel good and enjoyable using the services and facilities of an exchange.
For this purpose, you should ask yourself if you get lost in the settings and menus or if everything is easily available to you?
Do you come across terms and phrases that have a dumb and confusing meaning?
Do you connect with the visual design of the site and find it attractive?
The answers to these questions ultimately determine whether an online exchange has done a good job in designing the user experience of its site or not.
We checked out together 9 points for evaluating an online digital currency exchange.
Although, according to our previous statement, you cannot find any exchange that is 100% safe and reliable (because in the law of nature there is not something called 100, finally, 99.9!), but by passing your desired exchange through the 9 filters that we have introduced in this article, you can be 99.9% confident that the exchange you are looking for is the right choice or not.
If yes, that’s fine, if not, luck is on your side that you made the wrong choice before any unfortunate incident, and now you can go for other options.