How to Choose a Crypto Exchange?

When choosing an exchange and looking for low fees, you should also consider what coins are available, how secure the crypto exchange is, and the trading volume and liquidity. Depending on your crypto trading experience level, you might also see how good the crypto exchange is at teaching you how to use it and about crypto in general. Most crypto exchanges heavily push their educational resources, and some (like Coinbase) even pay you in crypto for learning.

Available Coins/Trading Pairs

Naturally, if you feel FOMO or have your heart set on a coin, the exchange you want to use should list it. All crypto exchanges will list the major cryptocurrencies, like Bitcoin, Ethereum, and Dogecoin - as there is enough liquidity in the market for these coins. However, some exchanges are far more strict on what they list, while others endeavor to list as many tokens as possible. Think about your alt-coin appetite and trading archetype when deciding on a crypto exchange.

Security

Exchanges have become the primary targets of hackers. Even Binance and Coinbase have been hacked, with tens of millions of dollars lost. However, due to the fierce competition for customers, exchanges have been quick to reimburse any losses and make sure customers don't suffer. Yet there is no guarantee of this being the case, so carefully check the security record of the exchange to see if there are any red flags or the possibility you will lose your funds.

In general, it's best to distribute your portfolio across several exchanges so that, if the worst happens, you don't lose out.

Trading Volume

Trading volume is crucial as it means there is less likely to be price slippage when purchasing large amounts, and you can be sure the exchange will fulfill your order at the price you want. Crypto exchanges with low volumes on specific pairs can be frustrating as the listed price may not be the actual price you end up paying, as there isn't enough liquidity on the exchange to guarantee it.

Educational Resources

Kraken, Coinbase, Binance, Gemini, and Crypto.com offer good to excellent educational resources. They will often pay you or reward you for taking their courses too, so it's well worth checking out what kind of educational program they have - especially if you're new to this world.

Accessibility

Not all exchanges are available everywhere. As regulatory sands shift worldwide, crypto exchanges are scrambling to keep up - and there have already been closures as companies realize they can't operate effectively in the jurisdiction and offer the services they want. Do check whether your exchange is available in your country before making your choice.

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