There is no time to waste, especially when converting cryptocurrencies – you want a fast exchange platform. But the platform also has to be safe, or your hard-earned cash could disappear in a heartbeat! Yet there are thousands of cryptocurrencies and over 500 exchanges out there. How do you find the right one?
Finding an exchange platform that aligns with your goals can prove to be a tough grind, especially when you are new to the industry. In this post, we look at how to find an exchange that is both fast and safe.
Before going on to sign up and hand over your personal information to an exchange, consider performing due diligence. Find out what the key selling points of a great crypto exchange should be. Besides, conduct some background research on the exchanges within your scope.
A good place to start would be finding out what other users have to say about the exchange. They are almost always right. Then, how about what the platform has to say about itself? They had better promise to provide what you are looking for! You also want to investigate whether they have previously had security issues as well as the solutions and reassurances they provided.
A platform that handles large volumes of trade has higher liquidity. It is a sure indication that your transaction may be completed with ease, speed, and without too much volatility. Some exchanges, such as Godex, offer fixed rates so you don’t have to worry about volatility, though.
What’s more, if you expect to be trading with big cryptocurrencies such as Bitcoin and Ether, a major centralized exchange such as Coindesk might be just what you need. However, when trading with smaller coins, consider a smaller, decentralized platform. Here is why: most entry-level coins are unable to pay the fees for listing on large exchanges, so they often prefer smaller platforms.
Ease of Use
You are not going to convert your cryptocurrency quickly if the user interface (UI) of the exchange resembles a Rubik’s cube. There is absolutely no reason to complicate the buying and selling of coins, especially not as far as UI goes. Sure, experienced traders love having access to advanced features. However, you’ll have a much easier time with the “rocket science” stuff tacked away in a tab instead of showing up all over the conversion page.
Let’s say you are looking for NAV to BTC conversion. A straightforward platform will have the exchange fields at the top and additional information at the bottom. A nice addition would be a drop-down menu where you can choose the necessary crypto easily. Also, the steps you take afterward should not be lengthy, allowing you to complete the transaction in just a few clicks.
Security and Anonymity
Speed without safety will do you no good. Now, most people will argue that an account that is harder to create is more secure and even swear by KYC procedures. However, you will also find that being able to sign in without submitting your private information or generating a recovery seed reduces your risk of getting hacked. Not to mention, skipping all those registration steps allows you to sign up and convert your cryptos much quicker.
Having a 2FA feature might make your account more secure, although you might want to avoid using text messages. Several cases have come up in the past where attackers intercepted SMSs or even called the telephone company impersonating the account holder to get their information.
Unless you only intend on trading in a few popular coins, you want an exchange that has a wide selection of cryptocurrencies. Ethereum, Ripple, and Litecoin are no longer the only altcoins you can trade with. The crypto market is ever-expanding, and innovative novel altcoins are hitting the mainstream constantly.
A platform that lists at least a hundred coins and keeps expanding its portfolio is a good option. The last thing you want as far as trading speed, security, and costs go is having to use several platforms to complete your transactions.
You could investigate the company’s customer service by going through their reviews and customer feedback. If you will be trading often, high chances are you’ll need to get in touch with your exchange down the line.
They should be available 24/7, respond quickly, be transparent, and ready to educate. Having a direct line is perfect. If they don’t, they should at least have a chat or any other integrated quick communication service.
“Fast” and “safe” are not easy to put in the same sentence when talking about cryptocurrency conversion. Yet, it is not far-fetched, as DEX platforms can prove. Be sure your go-to exchange has:
- excellent customer support
- volume and liquidity
- wide coin selection
- security, and
- straightforward UI.