The crypto market is constantly rising, having reached a cumulative market cap of $237.1 billion in 2019, up from 128.78 in 2018 according to Statista. Today there are over 5,000 cryptocurrencies on the market, all of them traded across a little more than 500 cryptocurrency exchanges.
But how can you figure out what exchange platform works best for you?
There are a lot of factors to consider. But as always, some are more important than others. Today we will focus on the top 4.
The last thing you want to happen when you are trading crypto is for the platform you are using to be hacked. In the famous Mt. Gox hack, it is estimated that around 850,000 Bitcoins went missing, valued at more than $450 million at the time. Today, a hack of that proportion would be 10 times as disruptive to the market.
Since then, crypto exchanges invested a lot into security, but that did not deter attackers.
When choosing a crypto exchange, you should make sure the platform supports two-factor authentication (2FA) and that you can recover your account if it ever gets compromised. But this is not just about your account.
Also look if the exchange provides cold storage and custodial storage services, or if the platform suffered any attacks in the past.
A quick analysis of the exchange’s website will provide you with all the information you need. For example, Narkasa takes pride in its cybersecurity standards, which make sure that their server networks are always updated, automatically backed up, and are protected from DDOS attacks.
Technology goes hand in hand with security. A crypto exchange that invests in its platform’s development is bound to also invest in its security.
But while security serves as a safety net, technology ensures that the platform is reliable and that it actually helps you trade better.
When it comes to technology, you should look at the platform’s transaction speed, API for price reporting, trading tools provided, and even alerts on price swings.
Last but not least, pay attention to the cryptocurrencies and crypto pairs supported by the platform. While some may support only crypto-to-crypto transactions, others will enable you to trade tens if not hundreds of pairs.
Although you may not need assistance, it is better to pick a platform who provides stellar support, just to get a little peace of mind. Because if anything goes wrong, you will definitely want to get a reply as quick as possible.
Platforms that provide 24/7 support such as Narkasa can definitely give you an advantage in your trading efforts, especially throughout the onboarding process.
Whether you want to trade a few cryptos a week or thousands of cryptos a day will affect the platform you end up using. That is because platforms generally focus on various types of customers, and this can be seen in their fee system.
Some platforms may choose to have higher fees for smaller trades and drop the fees to as low as 0 on large trades, while others may charge a small fee for smaller trades. Before you settle on a platform, make sure you thoroughly check their fees & pricing table, so you can pick what works best based on your trading needs.
There are countless other factors to consider while picking a crypto exchange, but what probably matters most is that you do your own research. Read reviews. Ask people that used or still use the platform for their opinion. Measure the pros and cons of each platform.
In the end, there is no single perfect choice. The platform you will end up using will depend based on your trading needs and problems, so take every information with a grain of salt.