According to the recent data shared by Forbes Advisor, nearly 300 million people around the globe own some form of cryptocurrency (as of 2021).
That’s no small feat for a financial instrument that’s only been around for just over a decade. What’s even more fascinating is that the global market for cryptocurrencies is projected to experience a compound annual growth rate (CAGR) of 12.5% by 2030. These numbers underscore the scale at which crypto is becoming integral to the financial landscape.
Now, if you’re looking to join this growing club of crypto-enthusiasts, one of the first decisions you’ll have to make is choosing a cryptocurrency exchange. It’ll allow you to buy, sell, or hold digital currencies like Bitcoin, Ethereum, and many others.
However, selecting a cryptocurrency exchange platform is not an easy feat. There are safety issues, fee structures, and a lot more to consider. So, let’s dig in!
Security First
One of the most crucial aspects you should look into when choosing a cryptocurrency exchange is its security measures. In an industry that is still relatively young and constantly evolving, vulnerabilities can be exploited, potentially losing valuable assets. In short, the stakes are high!
So, what should you do? Well, look for an exchange that prioritizes security. High on the list of must-haves should be compliance with Anti-Money Laundering (AML) and anti-terrorist financing regulations. As written here, you should check the track record of the exchange. It’ll help you know if any client’s funds have ever been lost.
All this information will eventually build your trust in the crypto exchange.
Fees and Method of Payment
Let’s talk about money now—or, more specifically, how much will go into fees. Every cryptocurrency exchange has its own fee structure, and these costs can add up quickly if you’re not paying attention.
Trading, deposit, and withdrawal fees are common and often vary significantly from one platform to another. Knowing how these fees work is critical for understanding your actual profit and loss, especially if you plan to make frequent trades.
But it’s not just about the fees. The method of payment you can use is equally important. Some exchanges accept e-transfers, while others might allow wire transfers or cash. So, make sure to weigh your options carefully to find an exchange that offers a good balance between reasonable fees and convenient payment methods.
Coin Selection
When it comes to cryptocurrency investments, diversity is key. One day, Bitcoin is the star of the show, and the next, it could be Ethereum, Dogecoin, or some other emerging token. Due to this ever-changing aspect, it is recommended to look for an exchange that offers a wide selection of coins.
It’ll give you the flexibility to jump from one promising opportunity to another and diversify your portfolio with ease.
In addition to this, the exchange should be proactive in adding new coins to its platform, especially those with rising popularity and potential. This ensures that you’re not struggling to find another exchange when you want to invest in the next big thing.
Final Verdict
Paying attention to the key factors discussed above is crucial not just for choosing a platform to trade but for selecting a partner for your crypto journey. So take your time, do your research, and make a choice that aligns with both your immediate needs and long-term goals.
