The Ultimate Checklist for Choosing Cryptocurrency Exchange

lessThinking back to when I first started looking into cryptocurrency exchanges. Back then I was looking for the “best” exchange. It’s interesting how, after a few years, there’s no clear winner. Honestly, I’ve come to believe that there’s no TOP cryptocurrency exchange out there. It’s more about finding the one that feels right for you. This choice should be tailored precisely to individual needs and preferences. Which factors are most important to you: security, asset availability, transaction costs, or overall user experience? This depends on your trading style, what you trade, how frequently you trade, and whether you identify more as a trader or an investor in that case your main priority probably would be the security of crypto assets.

Does cryptocurrency exchange provide security for your assets? 

Security stands as a paramount concern for users seeking a trustworthy platform. Several key elements contribute to a robust security framework, ensuring the safeguarding of digital assets. Firstly, the implementation of Two-Factor Authentication (2FA) adds an extra layer of defense, requiring users to verify their identity through multiple steps (such as Google Authenticator or email), enhancing account protection.

Cold storage solutions for digital assets play a crucial role by keeping the majority of funds offline, thus minimizing exposure to potential cyber threats. SSL encryption further fortifies the exchange’s infrastructure, securing the transmission of sensitive data between users and the platform. Lastly, assessing a crypto exchange’s track record of security incidents provides valuable insights into its resilience against cyber threats, allowing users to make informed decisions about the safety of their investments. If I come across news of a past security incident, I tend to stay away from that exchange.

Supported Cryptocurrencies

The availability of the top 15 cryptocurrencies is often a fundamental consideration for many traders and investors. Beyond the classics, the range of altcoins offered is equally crucial, catering to diverse investment preferences. Some traders prefer to trade established altcoins on the other hand some traders prefer less known altcoins that can give them bigger moves and therefore bigger profits. In this case, the MEXC exchange can be a better choice for them since they list less known altcoins and many meme coins. A comprehensive selection of altcoins provides users with opportunities to explore emerging projects and diversify their portfolios.

User Interface and Experience

A well-designed and intuitive interface is crucial for users to navigate the platform effortlessly. This is the first thing that traders notice; bad design and user-unfriendly navigation can immediately discourage you. The exchange should prioritize an intuitive design that allows users, regardless of their experience level, to easily understand and execute trades. User-friendly navigation further enhances the overall trading experience by providing clear pathways to essential features and functions. Mobile app availability is also a key consideration when choosing an exchange since many traders often practice on-the-go trading.  Additionally, having a demo account for practice is instrumental in allowing users to familiarize themselves with the platform without the risk of actual financial loss. I often choose to test a demo account before trading on a real account. This feature not only caters to beginners but also benefits seasoned traders looking to test new strategies.

Trading Fees

Understanding the maker and taker fees of cryptocurrency exchange is essential, as these fees vary based on whether one is providing liquidity (maker) or executing an existing order (taker). Examining the fee structure for different trading pairs is equally important, as some exchanges may impose varying fees depending on the specific cryptocurrencies being traded. For example, Bybit promoted zero fees on certain trading pairs, such as BTC/BUSD, last year. Those who took advantage of it could have saved a significant amount on fees. Moreover, assessing whether the exchange offers discounts for high-volume traders can significantly impact overall trading costs. For pro traders engaging in substantial trading volumes, securing discounts can contribute to considerable savings over time.

Liquidity

Assessing liquidity becomes a crucial factor in ensuring a smooth and efficient trading experience. High trading volume is a key indicator of liquidity, as it reflects the frequency and intensity of transactions on the platform. Cryptocurrency exchange with robust liquidity not only allows for seamless order execution but also reduces the likelihood of significant price slippage. The depth of the order book is another vital aspect to consider, as it signifies the abundance of buy and sell orders at various price levels. A deep order book provides traders with more options and helps maintain stable market conditions. Market depth charts visually represent the supply and demand at different price points, offering valuable insights into the market’s liquidity profile. Therefore, prioritizing an exchange with consistently high trading volume, a deep order book, and accessible market depth charts contributes significantly to a positive and efficient trading experience in the cryptocurrency market.

Have you checked the reputation and review of a cryptocurrency exchange?

Online reviews from other users offer valuable insights into the experiences of individuals who have used the platform. Paying attention to both positive and negative reviews can provide a well-rounded perspective on the exchange’s strengths and weaknesses. Ratings on independent platforms further validate the overall trustworthiness and reliability of the exchange. Platforms that consistently receive high ratings are likely to offer a more secure and user-friendly trading environment. Additionally, considering the exchange’s reputation within the cryptocurrency community is essential. A positive standing in the community indicates that the platform is respected and trusted by fellow crypto enthusiasts. Therefore, we recommend a thorough examination of online reviews, independent ratings, and the exchange’s reputation within the cryptocurrency community.

Hyrotrader Tip: Check reviews on the following websites—TrustPilot, for example, has particularly interesting reviews of both Bybit and Mexc (both exchanges have below 2 stars). I recommend reading through some of these reviews to understand what to be cautious about, and it may influence your decision to avoid one of them. Also, consider checking the reviews on platforms like the Apple App Store or Google Play, as they can help you assess both the app’s quality and overall customer satisfaction.

https://www.trustpilot.com/

Geographic Restrictions

Firstly, check the availability of the exchange in your region to ensure that you can easily access and utilize its services. Some exchanges may have specific features or services limited to certain countries. Secondly, be mindful of any restrictions on certain countries or regions imposed by the exchange. Regulatory and compliance factors may lead to limitations on services in particular geographic areas. Being aware of these restrictions is essential to avoid any potential inconveniences or limitations in your trading experience. Therefore, before committing to a crypto exchange, thoroughly review its geographic availability and any associated restrictions to ensure that it aligns with your location and trading requirements.

Which cryptocurrency exchange to choose in 2024?

You might not be thrilled, but there isn’t a definitive answer to that. As mentioned many times, selecting a cryptocurrency exchange is a highly individual choice and should be based on the trader’s priorities. We hope that we have provided you with some guidance on how to approach this decision. HyroTrader provides mainly funded accounts on by-bit but after transforming to real funds we have also funded traders on Binance and are open to other exchanges Crypto Trading. Additionally, we’ve included a summary table to consolidate all our thoughts.

Table of 5 Best Cryptocurrency Exchanges in 2024