If recently you became the happy owner of crypto, you probably asked yourself the question, where is the best place to trade it? So, let's decide how best to choose a cryptocurrency exchange. There are about 200 crypto exchanges in the world, on which millions of transactions are conducted daily. To choose a reliable trading platform, you can focus on the "age" of the exchange and trading volume. But this is not always a guarantee of protection of funds — the largest, as well as the oldest platforms, are periodically hacked. The following are the criteria that will help you not to lose your money when choosing a reliable crypto exchange.
The list of attacks on crypto exchanges is constantly updated. Bitcoin is especially attractive to hackers. But traders are losing other cryptocurrencies.
The websites of cryptocurrency exchanges contain information about security measures. Make sure that the site provides two-factor authentication and transmits all user data through encrypted channels. This can significantly reduce the likelihood of a wallet hacking and protects against attacks based on listening to a network connection. Find out immediately from tech support whether the exchange will be responsible for the loss of cryptocurrency. This will allow you to worry less about your savings.
Sometimes the danger for traders is not only hackers but the exchange itself if it does not care about blocking and sweeping scammers in chats. They contact traders in chats on behalf of the allegedly “technical support” of the exchange and gain access to their wallets. For the same purpose, attackers set up sites with addresses similar to popular sites. In more rare cases, the cryptocurrency exchange is initially organized for fraudulent purposes.
Google unknown sites and read about them on the forums. Users like to warn about dubious sites and talk about the shortcomings of crypto exchanges. There is a chance of running into advertising, but you should pay attention to mass complaints. The high volume of trading on the exchange indicates that traders trust the site. Some ratings allow you to monitor the dynamics of the trading volume. But relying only on this criterion is not worth it. Another way to check the reputation of the exchange is to find as much information as possible about key persons from its management. The lack of information about the CEO or the founders may indicate that the exchange operators want to remain in the shadows, and this is an alarming signal. If the CEO’s name is publicly available, it should also be checked in search results and social networks for scandals.
Consider the size of the exchange's internal fees. Most sites withdraw their percentage for operations with cryptocurrencies. Find out for yourself this moment so as not to get involved with technical support already when placing orders.
Reliable exchanges always indicate their fees on the site. If the site’s reputation is not in doubt, you can contact technical support and clarify information about fees. Find out in chats if other traders complain about hidden fees.
In China, cryptocurrency trading is prohibited, in other countries, regulators are actively fighting scammers and oppose anonymous traders. This affects trading - on some exchanges, increased attention will be paid to user actions due to reporting requirements to the regulator, and somewhere, the exchange may close at any time. Therefore, when choosing, it is important to clarify where the exchange is registered and how the local financial regulator relates to cryptocurrency trading. It is better to choose a stock exchange from a jurisdiction with a relatively loyal attitude to crypto trading.
There are other important factors - the quality of technical support, the simplicity of working with the exchange, the speed of transactions. Often these nuances pop up already during trading, it is difficult to check them in advance and reviews of more experienced traders can also help here. However, if the site approached you in the five parameters listed above, most likely, and with other aspects of serious problems will not arise.