Guide to choosing the best crypto exchange for beginners
An exchange is one of the most important services you are going to use as a crypto trader. If you want to have the best quality of life, then you have to pick carefully. There are hundreds of exchanges out there but choosing is easy if you know what to consider.
This guide aims to show you how a crypto trader should go about choosing an online exchange. There are several factors to keep in mind and a few variables to make allowances for in the long run. Being picky about an exchange is an investment of your time and effort in researching your options and the payoff is a reassuring quality of life experience.
Determine the crypto you want to trade frequently
Every trader has a main crypto they want to focus on out of the thousand digital assets. Some focus on one and it’s usually the top blockchains like Bitcoin (BTC) and Ethereum (ETH). Others prefer accessible ones like the memecoin Dogecoin (DOGE) or the stablecoin Tether (USDT).
If you are a gambler at Sportsbet then one of the aforementioned crypto is in your possession. Fortunately for you, all of these are accepted in some of the top exchanges like MetaMask and Coinbase. All you have to do is choose which exchange has a high trade volume of the asset you are trading because that guarantees liquidity.
Set a neat portfolio
It’s often better to spread your investments on two or more assets to balance your profits and losses no matter how the market trends shift. It also gives you more options on which kind of crypto to use for sports betting Japan matches during the prime of the tournament.
It’s preferable to use stable or bearish crypto in sports betting while you are trading the bullish ones. Likewise, a good exchange should give you the tools to track this portfolio. Thus, you should choose ones that not only support all the currencies you want to trade but also give you tools to manage them.
Prioritise popularity and reputation
It can be tempting to choose a crypto exchange based on whichever has the lower service fees. However, security should be your top priority when choosing this type of platform. A popular or highly reputable exchange like Coinbase and Binance have stayed in the crypto trading the longest. Hence, they have a more hardened security level against all kinds of hackers and scammers, making them less susceptible to breaches than any other.
A dense population of traders guarantees liquidity
Another reason to choose a highly reputable website is the population of users. You are more likely to find a buyer and/or seller the more people are participating in the market. It also guarantees faster transactions because of these exchange’s competitive communities.
Double-check security updates every once in a while
Even if you’ve already chosen an exchange, it’s still worth keeping an eye out for other options. Read the patch notes of your current online casino and see what you can find about changes in their security policies. Also read news from outside sources like mainstream media or blog posts for perspectives on an exchange’s service. If any of them raise security concerns for you, then it’s time to start planning to move to a new and more secure trading platform.
Research exchange’s history on breaches if any
All exchanges are susceptible to hackers to a certain extent because of their reliance on cloud services. Even the top exchanges like Binance and Coinbase have brief hacking incidents but what matters is how they responded to it. If they handled it poorly, then news outlets will publish outrage about the event. Otherwise, an exchange that handled their cases well like Binance and Coinbase can maintain their users’ confidence, ensuring that the popularity won’t wane.
Study the tools provided for traders
Every exchange offers various tools for users and the complexity may vary. The goal is to find out if any of them will be helpful to you as a crypto trader. It’s also worth noting how convenient they are for sports betting Japan bookmakers. The ideal one should have means to easily convert between crypto as well as for quick deposits and withdrawals. That is the case with Sportsbet payment options like Paxful and Onramper.
Weigh your options for casual and expert trading
Exchanges primarily identify their users as either casual or expert traders. Casual buyers or sellers will rely on the platform’s provided services like copy trading or brokerages. This always comes with a relatively high convenience fee, ranging between 1% to 4% of your transactions.
Expert traders, on the other hand, are expected to use more complex tools for analysis, margin and futures trading, as well as charting. Most of these are primarily free to use and the only fee users need to pay is for using the platform. It is primarily between 0.5% to 1%, making it rewarding for traders to learn the fundamentals of market trends.
Check exchange’s background
Besides the tools they offer, popularity, and level of security, it’s also worth knowing how the exchange operates. These details can affect your quality of life as a trader on its platform like policy changes, additional regulations, or even accessibility. Here are two important pointers for checking an exchange’s background:
See the company overseeing their operations like a licence
An exchange doesn’t need to have a licence to exist but it requires one to operate in every jurisdiction. Some providers have a high-enough standing to provide one for global reach like the New York State Department of Financial Services which Coinbase operates. Likewise, some can also be centred around a specific jurisdiction like Japan’s Financial Services Agency who is also overseeing Coinbase’s services in the country.
See which country their HQ is operating from
Every centralised exchange (CEX) has a headquarters in a country somewhere. This matters because the laws and regulations of that nation can affect your crypto trading experience. It’s ideal to have the exchange in a crypto-friendly country like the United States, Japan, and some countries in Europe.
All of these examples have complex regulatory environments led by governments who are open-minded to the potential of blockchain-based finance. Other countries like China and Algeria have made a strict stance against crypto-centric institutions. Hence, exchanges with headquarters in countries like these won’t last long.
Choose wallets that they are associated with
One last factor to consider when choosing an online exchange for trading is knowing the best wallet to use with them. All of them can be connected with the top third-party wallets like the Ledger Nano S or MetaMask but there are advantages to using a dedicated software.
This is the case with Coinbase Wallet and its namesake exchange because it gives you lower fees as well as seamless integration. It’s handy for frequent transactions, making you enjoy your Sportsbet winnings better than losing a fraction of it to convenience fees. You can also consider if the exchange site is frequently visited by users of a certain wallet, ensuring that you are not missing out on special offers or hidden benefits.
Double check supported crypto for each one
Wallets and exchanges individually update what kind of crypto they are using based on market trends. If a certain digital asset becomes widely adopted or has reached enough market capitalisation (market cap) then they become listed. The standard varies between every platform so it’s common for them to not have a mutually supported crypto.
Thus, you should always see if the crypto you want to trade is supported by both the wallet and the exchange you want to use. You would usually have no such problems with assets as universally accepted as Ethereum. However, you can have issues with Bitcoin or its fork, Litecoin (LTC), with MetaMask because that is exclusive to Ethereum-based assets only.
Use these pointers in choosing the best crypto exchange
All of the above pointers are influential factors in determining which crypto exchange can serve you best as a trader. In the grand scheme of crypto trading, all exchanges function similarly. They all serve the same purpose of helping you buy and sell digital assets as well as finding a trading partner online. However, it is how they execute those objectives that make them different.
Even if you have already chosen an exchange to use, you don’t have to stay with it forever. You can always try out other crypto exchanges to sell your Sportsbet winnings. There are plenty of options out there and each one of them is a live service that can be updated to improve. Always stay tuned for news of the latest market trends, see which one is now leading the trading industry, and check it out. These are all part of the fun of being a crypto trader and gambler like you.