Ten factors to consider when choosing a Crypto Exchange

During the last few years, the popularity of cryptocurrencies has grown exponentially. More and more people are looking to invest in these digital assets, and as a result, the number of crypto exchanges has also increased. Knowing which exchange is suitable for you can be tricky with so many options now available.

However, according to recent estimates, the crypto-trading industry has transformed into a global market worth about a trillion. However, small-time investors shouldn’t forget that trading crypto isn’t risk-free, and you should be careful while buying/selling virtual money. So, how can you make money through cryptocurrency investment today? The answer involves choosing the right cryptocurrency exchange!

How to choose the right crypto exchange?

The DCEs (digital currency exchanges) enable laymen to simply “exchange” fiat money for virtual money and the other way around. So, small-time investors can simply connect their accounts created on these exchanges and start trading crypto coins without hassle. It’s estimated that about 400 DCEs work in the world right now, and investors can choose any of them to start trading.

But how do you find the perfect crypto exchange for securing your investment? That’s the million-dollar question for every beginner who wishes to get rich by trading virtual money. We’ve discussed some methods here to help you choose the ideal crypto exchange. So, consider the following strategies while going through a list of famed DCEs:

  1. Compliance with regulations

Firstly, investors should ensure that their favorite crypto exchanges comply with federal regulations. Learn about AML and KYC regulations and how they protect customers from fraud. Contact a reliable platform such as currency.com when you wish to trade crypto online. Reliable platforms will allow you to trade virtual money for not just traditional currency but also famed shares, indices, and commodities. That’s how you can now buy/sell virtual money easily on these exchanges in 2022.

2. Your country’s laws

What do the laws in your country say about cryptocurrency trading? Are certain exchanges available in your country? Surprisingly, not every cryptocurrency exchange is available in every region. People must be familiar with the laws in their states before creating accounts on illegal platforms. So, ensure that the cryptocurrency exchange you’re considering accepts your state’s fiat currency. Also, an exchange’s availability in certain counties may vary, so don’t forget to remain updated.

3. The exchange’s age

There’s a reason why small-time investors rely more on old-age exchanges. They’re more reliable and risk-free than modern-day DCEs established just a few years ago. Therefore, at least you’re better off working with a well-established platform with a five-year track record. Moreover, some exchanges today offer “verify my audit” options that allow users to ensure that the DCE has the assets it claims to possess. That’s how folks can stay away from working with scammers.

4. Available virtual coins

Consider which cryptocurrencies are available in these exchanges and choose ones that allow you to trade various virtual money. Some of the most famous currencies, such as BTC and ETH, are on popular platforms. When it comes to lesser-known coins, trades must review which exchanges offer them. These platforms should also have enough liquidity to permit trading in these coins. A trader should create accounts on trustworthy platforms that offer transparency to all their users.

5. Its online reputation

Search online and surf Reddit posts to realize how users view their exchanges. These posts can help you understand which exchanges are ideal for trading, as per online reviews. Moreover, an individual can make a pros-and-cons list about their ideal exchanges and then choose the best DCE. Maybe, you’ll decide to create your accounts on more than two of these crypto exchanges. So, stay away from shady platforms by ensuring that you’re creating an account with a reliable exchange.

6. Offered security features

Investors should remain cautious about hackers marauding online. It’s estimated that investors lose $9 million each day to crypto scammers and fraudsters. That’s why we must consider all the security features offered by these cryptocurrency exchanges. Some top-tier crypto-trading platforms take an investor’s security very seriously and establish several checkpoints to prevent hackers from accessing a person’s assets. That’s how you can avoid losing your hard-earned cash to some hackers online.

7. Compare the fees

How do crypto exchanges make money? Well, they charge you a modest amount whenever you buy, sell, or withdraw something. Their fees can range from 0% to 5% for a single trade, and users have the option of working with affordable DCEs. Compare the fees demanded by different e-trading platforms. Many exchanges charge you based on how often you trade every month. Therefore, trading $10,000 once a month can be less expensive than trading $5,000 ten times a month!

8. The trade volume

The number of participants on a certain cryptocurrency exchange shall determine whether you must create an account on it or not. Now, some exchanges may conceal their trade volumes because they don’t wish to share this information with people. However, users may discover this info by referring to third-party apps. But why do you need to learn the trade volume on a certain DCE? Well, you can’t sell many coins on a low-volume exchange because there won’t be enough buyers available now.

9. Its user interface

The exchange should offer you an easy-to-use interface where investors have no problem navigating while trading cryptocurrency. Many small-time investors prefer DCEs with user-friendly interfaces, so they’re ideal for use on both computers and smartphones. Moreover, these exchanges provide user guides on buying/selling cryptocurrency. That’s why you should consider exchanges where users can easily view their assets. The interface enables you to trade quickly and understand the market.

10. Its insurance policy

Read carefully the insurance policy uploaded on the exchange’s website. You must realize how these exchanges protect your wealth and what happens if someone steals your assets. Their policies describe what they cover in case hackers infiltrate their servers and steal people’s information. Search the FAQ section of these exchanges and read online discussions regarding their policy changes. Also, make sure that these DCEs offer you FDIC insurance for the money you keep there.


We’ve established that small-time investors should rely on cryptocurrency exchanges to trade coins and choose these DCEs carefully. How can you select the perfect exchange today? Well, consider the laws of your country. After that, check if the exchange offers the security features you’re for, such as two-factor authentication. Moreover, this exchange must have a variety of coins to choose from and several fiat currency options. Compare the charges demanded by different crypto exchanges. Read their policies carefully and search online for user reviews. A well-reputed exchange seems like the ideal place for you. That’s how you can select the perfect cryptocurrency exchange and start trading these coins properly.