5 questions to ask before choosing a crypto exchange

The first thing you need to understand is that a wallet and an exchange are two different things. A wallet is a secure place where you can keep your crypto. Meanwhile, an exchange allows you to make transactions with your digital currency. But what criteria should we use in order to choose one? Which exchange is safest?

Security is of paramount importance when it comes to making crypto transactions. Starting with the basics, an exchange should have an HTTPS connection . This means that the site is encrypted and adds a layer of security to the actions you perform on it.

Another important security feature is that the site should offer two-factor authentication in order to verify your identity when you enter your account and prevent data theft. Finally, you should also check if the exchange offers cold storage or else find a storage option elsewhere. This allows you to have a digital wallet that doesn’t require a connection to the internet, something that reduces the risk of being hacked.

Which exchange has the best fees?

If you’re going to invest for the long term, you might not be too concerned about the fee per transaction, but if your plan is to exchange, sell or make other regular movements, you’ll want to choose an exchange with pocket-friendly fees. Platforms may charge different fees for deposits, withdrawals and extra commissions depending on where you move your assets. It’s up to you to choose the exchange that best meets your needs.

What cryptocurrencies does the platform support?

For some investors, it’s important for an exchange to have a wide variety of cryptocurrencies available so that they’re not limited in terms of the transactions they can make between different tokens.

Is it legal in your country?

Depending on where you live, you should make sure that the exchange you’re thinking of using is not illegal. Regulations are changing all the time, especially in countries like the US, so you need to do some research before making your choice.

Is it easy to use?

Usability is another point to bear in mind when you’re choosing an exchange. If you’re new to the crypto world, you’ll want to choose a platform that provides user-friendly navigation, connection with the main payment methods and that doesn’t overly complicate matters with ultra-technical terminology.

Interest in crypto exchanges grows

In the week that Silicon Valley Bank collapsed, crypto exchange app downloads rose by 15%, according to Apptopia. The moment marked a peak in public interest in crypto. But an even more interesting detail is that at the same time, the number of downloads for the apps belonging to the 10 biggest US banks fell by between 3 and 5%.

If you want more information about exchanges, Coin Market Cap has a ranking based on traffic, liquidity, trading volumes and confidence in the legitimacy of trading volumes reported.

On the same site, you can also find data about the cryptocurrencies that you’re interested in purchasing, allowing you to make an informed decision.