Choosing best Crypto-Exchange? (For Newbie)

[pickforbies]

Exchanges have an important role in buying and selling crypto-assets or cryptocurrencies. It is the intermediary that connects buyers and sellers. The analogy, such as a brokerage company or securities in stock trading. Choosing the wrong crypto exchange can lead to a path full of distractions and wasted efforts. Based on my experience, this is how to choose it:

1. Understand Authenticity and Security

Research will help you choose a safe and legitimate exchange platform. Make sure the exchange you use uses a cold storage type wallet. There are two types of wallets in a crypto exchange, namely hot wallets and cold wallets. This type of cold wallet is technically offline, because it is not connected to the internet network. This means hacking is very difficult to do. Cold storage (or offline wallets) is one of the safest methods for holding, like bitcoin, as these wallets are not accessible via the Internet. A good exchange should have a 2-factor authentication (2FA) feature, as a second layer of security after passwords when logging into accounts and making withdrawals and sending transactions. In addition, it also has an e-mail encryption and verification feature, which requires you to confirm every withdrawal or delivery transaction.

2.  Fees & Purchase Method

Purchasing methods of cryptocurrencies between platforms vary widely. There are exchanges that require an initial deposit via transfer or use PayPal, credit and debit cards, or can even use cryptocurrencies for purchases. However, for investors who did not own cryptocurrencies before joining the exchange, it is important to choose a platform that accepts fiat currency. In addition, investors need to find out how long it will take to complete a purchase. Some platforms process transactions almost instantly while others can take days or weeks.
Next, regarding service fees. Please note that there are several fees charged to investors such as withdrawal fees, transaction fees, and fees as market makers, as discounts when investors transact by following an existing price queue. In crypto exchanges, many people ignore this factor and end up choosing an exchange with high transaction fees, not knowing that they can use an exchange that offers lower fees.

3. Features

Every exchange must have excellent trading features offered to traders to support their transaction activities. There are several important and useful features for traders such as the price chart feature that will help technical price performance analysis. Then, there is a cut loss feature that can help traders limit losses to certain prices, as well as a short selling feature to ensure traders continue to make profits even though the price of their crypto assets is experiencing a decline or entering a bearish phase. One of the biggest problems in the cryptocurrency industry today is centered on pump-and-dump schemes, namely a drastic price increase in the price of crypto assets followed by a drastic decline in value. This happens due to the purchase of a lot of coins by traders, causing pump activity and once the market conditions are unstable because everyone is competing to buy coins, the traders then dump their coins so that the price suddenly drops. For beginner investors, features like this are very crucial, considering that crypto assets have high price volatility and are aggressive.

User experience and functionality are important factors to consider, especially if you are trading cryptocurrencies for the first time. Exchanges with good user experience attract the greatest growth in transaction volume.

Feel free for add more tips 

[ipanks]

I think the important thing that you need to concern about is the crypto exchange has KYC or not. If you are okay with KYC, you can choose the biggest exchange, have a reputation among the other exchanges, and have a good support system that will help their member when they have a problem. If you are not okay with KYC, you should search for the other crypto exchange that you want.

Almost all exchanges have 2FA and email verification to protect their members and the fee will vary between all exchanges. The fees themselves can be adjustable by using the lower fee from the coins and we can choose which coin has a low fee.

[Taskford]

I think the important thing that you need to concern about is the crypto exchange has KYC or not. If you are okay with KYC, you can choose the biggest exchange, have a reputation among the other exchanges, and have a good support system that will help their member when they have a problem. If you are not okay with KYC, you should search for the other crypto exchange that you want.

Almost all exchanges have 2FA and email verification to protect their members and the fee will vary between all exchanges. The fees themselves can be adjustable by using the lower fee from the coins and we can choose which coin has a low fee.

Recently I'm not ok with KYC but since those reputable exchange require to do that then I'd choose the best among with the current existing today since on the top 1 we can assure that our identity will be safe from any frauds around compare if you just go on small exchange which possibly can give us a problem since they can sell our identity on anywhere they want.  I know there are exchange have huge fee but actually I don't care about it since what matter the most for me is the security since hacking issue is rampant lately on crypto so its good that we will avoid that for choosing the best and not the less one.

[zaesvlas]

The best option is to try your hand at trial accounts on different exchanges. As for me, this is quite an interesting option for a beginner.

[cheezcarls]

Personally I don’t like KYC coz’ it destroys the purpose of decentralization and anonymity. But with the exception of highly reputable exchanges such as Binance, KuCoin, OKEx, etc., they’re fine with me. But for new exchanges out there that requires KYC, I would be highly doubtful about their integrity. So for me, not safe if we choose to KYC with not-well known exchanges.

[LimLims]

The best option is to try your hand at trial accounts on different exchanges. As for me, this is quite an interesting option for a beginner.

That’s a wise recommendation according to me.
But if we see practically, many exchanges don’t provide dummy or trial accounts.
And here we need to seek expert’s advice.
Though i am not expert, but yes from my prior knowledge i can suggest you some.
As per all types of users requirements, Binance will be a better option.
The features are already listed on their site. So if you choose Binance, then it won’t be any harmful to trading.
Hope this contributes to OP.

[passwordnow]

Personally I don’t like KYC coz’ it destroys the purpose of decentralization and anonymity. But with the exception of highly reputable exchanges such as Binance, KuCoin, OKEx, etc., they’re fine with me.

Many of us don't really like KYC because it's also another effort to be given to the exchange that we use. Binance has been requiring it and there's no longer use for those unverified accounts. In Kucoin, it's the remaining exchange I think that don't ask for KYC and which is considered as a good exchange by many.

But for new exchanges out there that requires KYC, I would be highly doubtful about their integrity. So for me, not safe if we choose to KYC with not-well known exchanges.

Me too. I'll choose the older ones that are reputable that asks for it if I really want to stay there rather than complying to a newer one.

[teosanru]

I don't think there are a lot of exchanges to choose from which could satisfy all the conditions and needs of a trader. I think the equation is pretty simple if you are interested in just hodling cryptos then you should never go for an exchange, look for any wallet which gives you the private key which means you are the owner of your funds, if you are a trader who wants to trade in various currencies best way is to go for Binance/ FTX/ Kucoin/ Kraken. Only these 4 exchanges have enough volumes and enough coins for anyone to actually earn money and remove unnecessary slippages. Binance is even best when it comes to fees so makes it one of the best exchanges. If you are more into derivatives like F&O then FTX is much better than Binance.

[hd49728]

Cryptowisser has a table for exchange list, with taker, maker, withdrawal fees and detailed review.

Good exchanges must have good trading fee (cheap), high trading volume, good and quick customer support. Good referral program and approve your withdrawal request quickly.

Binance is good if you want to use a centralized exchange.
Pancakeswap is a good DEX and it's perfect if you want to trade tokens on BSC.

[Issa56]

Currently now there are lot's of exchange where you can buy and sell your cryptocurrency but personal I will recommend binance and kucoin, currently if you are choosing binance you have to make sure you do your kyc first before you can trade which not really everybody like reviewing their identity which Binance new rules is you have to do you verify, but in alternative to binance you can go for kucoin which you can also do your kyc there if you really want but you have to do your kyc first before you can make use of P2P but you can trade even without you kyc verification.

[Ararbermas]

To be honest all you have mentioned above is right OP, wherein having such exchange is more reliable and comfortable to used. Especially when it comes to SECURITY  because that's the most important to keep our funds safe from hacking and etc in any platform , For the features as well probably it doesn't matter because every exchange nowadays can copy paste such stuff,  and infact if you used to trade only it's not an important thing.

[arbifahrozy]

Personally, what do u think which exchange is best for newbies now a days because there has a lot of issues regarding the exchanges, like the security of the exchange and many more others, like the people and the trader can't withdraw their money easily and it takes a lot of time sometimes, but I should know that what has your views about it?

[sujonali1819]

Nice explanation about the choosing of crypto exchange. All what you have said are very important points of choosing exchange. As always suggest people to chose a exchange who has a better security. This is very important for all trader.

On the other hand among with the fees ,Purchase , and features exchanges must have to a good trading real volume. This should be checked manually since some shit exchange run bots to increase the 24h volumes.

[Raflesia]

Good understanding and this is worth a look for novice traders.

Binance is one of the best exchanges in my opinion with very tight security and requires KYC although there are still many who oppose it, but for the sake of protecting assets this is not a problem for me and I am happy with other top exchanges that require KYC with the same same security.

There is also a DEX exchange that is currently ranked No. 1 according to CMC (dYdX) but I've never done it there what many people use on DEX exchanges is pancakeswap.

[yhiaali3]

Thank you. These features are really important, but for me the most important tip you should not forget is to research whether this exchange forces its users to complete KYC or not!!! Also, you should search whether your country is among the banned countries or not!!! Then I will look for the features you mentioned!!!
Because I'm from a country that's banned from most exchanges, so that's the most important thing to me.
Also, many users prefer to maintain their privacy so it is necessary to know if the platform requires KYC before registering, as well as many users live in prohibited countries so it is necessary to know this also because you may lose your money because of that.

[Fesatmas]

All the above points the most important is security. Even though many people don't like KYC, maybe Kucoin can still be an exchange that gives us some leeway. It should be noted that KYC is indeed vulnerable to our identity if at any time there is a data leak. But therefore opt for a trusted exchange which has by far a much better level of security. I won't say what the name of the exchange is. Because everyone knows where to make comfortable trading. The fear of multiple hacks is often threatening. However, the exchange also has the right to protect our finances in it if there is an error in the exchange.

[adzino]

-snip-

1. Understand Authenticity and Security

Research will help you choose a safe and legitimate exchange platform. Make sure the exchange you use uses a cold storage type wallet. There are two types of wallets in a crypto exchange, namely hot wallets and cold wallets. This type of cold wallet is technically offline, because it is not connected to the internet network. This means hacking is very difficult to do. Cold storage (or offline wallets) is one of the safest methods for holding, like bitcoin, as these wallets are not accessible via the Internet. A good exchange should have a 2-factor authentication (2FA) feature, as a second layer of security after passwords when logging into accounts and making withdrawals and sending transactions. In addition, it also has an e-mail encryption and verification feature, which requires you to confirm every withdrawal or delivery transaction.

No matter how much secure the exchange claims to be, they are never secure enough. They can always be hacked. Storing coins is cold storage doesn't mean you won't lose your coins during a hack. Having 2fa on your account doesn't guarantee that your funds are safe. You are enabling 2fa on your account. Your account doesn't hold any coins. The exchange does. Never leave your funds in an exchange wallet.

[GreatArkansas]

A lot of also missing this, especially most of the newbie and the lazy one; Reading TERMS of SERVICES (TOS).
This is why some people are being surprised and mad when some of their funds are being locked on such exchanges, so for sure they may be violated some rules or TERMS of some exchanges.
For me, this is very important especially on some country, trading cryptocurrency is prohibited.

[cabron]

Normally we just follow where experienced traders are. If they are binance, newbies will also be there. Until they wanna look for other exchanges which features are not found in binance. Security is one good reason why traders are going to a safer exchange which binance also has. It's perfect for newbies as well.

Someday we may have popular exchanges that will have their own metatrader (MT4-5) and don't just an app on phones. I think it's easier to use it which users can add bot script.

[Wexnident]

Wouldn't it really just be a matter of preference? Like that's probably the best term to describe on what basis people use to actually choose the exchange they'd like to go on to. There's probably a lot of factors one needs to include when judging exchanges but really, as long as it isn't a scam, there would probably be used of said exchanges. Just choose what you're most comfortable with imo, but judge it with common sense ofc, don't let exchanges take advantage of you, it should be a mutual benefit for both parties.