Cryptocurrency exchange, also referred to as a digital currency exchange (DCE) is a platform that facilitates the exchange of cryptocurrencies either through crypto trading or through exchange of crypto to other assets, as well as fiat currency. There are several cryptocurrency exchange platforms in the market with differing features and offerings. In order to choose an effective exchange platform that suites the needs of your business, it is important to compare core features of the available options.
Essentially, crypto exchange platforms mediate between buyers and sellers and make profit by charging commissions on transactions therein. As such, a good exchange platform option is one that is conducive to both you and your clients in terms of commission fees, flexibility, and ease of use among other factors.
This checklist provides a guide into features and factors to look out for when selecting a cryptocurrency exchange.
Part 1 – Security
1 Check that the exchange is secure
2 Check that the exchange requires multi-signature verification/authorization
3 Choose an exchange with cold storage
4 Select an exchange that has been around for a while
5 Choose an exchange with a high number of users
Part 2 – Fees and Commissions
6 Ensure that your selected exchange does not have hidden fees
7 Select exchange platforms with their own exchange tokens (Binance has its own tokens)
8 Check for availability of discounted fees, commissions, and discounted rates
9 Check for platforms that offer rewards credit card (a good example is BlockFi)
Part 3 – Accessibility
10 Evaluate the accessibility of the exchange platform in terms of jurisdiction
11 Be on the lookout for any jurisdiction-based regulatory uncertainties
12 Be knowledgeable about cryptocurrency rules in specific countries where the exchange platform is based
Part 4 – Ease of Use
13 Select exchange platforms with easily navigable user interface
14 Check out that the platform has basic and advanced layouts for different clients
15 Ensure the exchange is robust and supports mobile devices
Part 5 – Reputation and Customer Support
16 Review the platform’s reputation based on online reviews
17 Check how promptly the platform responds to customers
18 Evaluate how emphatic the platform is on superb customer care
19 Check that the exchange offers 24/7 customer support
Part 6 – Liquidity and Coins Offered
20 Go with exchanges with the largest trading volumes
21 Check the flexibility of the exchange in terms of coin selection
22 Evaluate the available buy/trade options
Part 7 –Insurance and Educational Tools
23 Check whether there is provision of insurance
24 Evaluate the deposit and withdrawal limits of the exchange rates
25 Select an exchange platform that offers educational tools regarding cryptocurrency
Notes:
- Some of the most renowned crypto exchanged platforms in the market include Coin Base, Binance, Coinmama, Kraken, Square, BlockFi, Gemini, Bitfinex, Coin Base Pro, FTX
- Some platforms that offer insurance include FTX, Bittrex, Coinbase, Binance, and Gemini
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