Cryptocurrencies have been on the rise in the last few years, and they have been excellent investments and trading options for people around the globe. This new asset class provides better returns and a new way of storing wealth, which has attracted many people for regular investments and has opened effective Crypto trading options for rapid growth.
If you are someone who has adopted this new alternate asset class and is looking for a reliable cryptocurrency exchange in 2024, this is the right place. In this article, we will explore the features you should look at when choosing a cryptocurrency exchange where you can trade and invest your money confidently.
Key Features of Crypto Exchange To Know
Cold Storage
Cold storage is a way of storing your cryptocurrency investments offline and away from the internet or direct access. This method reduces the risk of hacks and cyber attacks involving cryptocurrency coins and protects your investments.
When looking at a crypto exchange, you should find out whether the exchange uses cold storage to store the long-term investments of its customers and does it also allows to transfer of coins to personal cold storage or not. If they provide the option to transfer coins to personal cold storage, you can easily get your coins off the internet and store them in a hardware wallet protected by your passwords.
Insurance
Crypto exchanges are often attacked for the valuable crypto investments of their customers, and if the hack is successful, the exchange and customers can lose millions of coins from their investments.
In such scenarios, having insurance helps a lot. The insurance covers losses emerging from hacking or theft of cryptocurrency coins and protects your investments on the exchange. Always look for exchanges that have insurance that covers every customer on their platform. This will provide financial security and assurance to you that your investments will be safe even in case of hacks.
Two Factor Authentication
Two-factor authentication is an added security feature that prevents hackers from gaining unlawful access to your account by adding another layer of authentication. If the exchange has this feature, you won’t have to worry about your account getting compromised even after someone gets hold of your password. Whenever a login attempt is made, another OTP will be sent to your email or mobile phone to verify you are actually making the login attempt. If any of the passwords don’t match, the login will be prevented.
Always enable two-factor authentication in your exchange app if the feature is available. It will save you from unauthorized login attempts and keep your investment safe.
Transparent Fee Structure
When choosing a crypto exchange, you should first look at its fee structure and see if everything is mentioned correctly. You shouldn’t trade or invest using an exchange that hides its fees and applies fees randomly.
Understand the charges associated with trading, deposits, transfers, withdrawals, etc, and decide whether it is the best charge you can get in the market or whether there are better exchanges. A transparent fee structure helps you calculate your charges better and assists you in planning your trades.
High Liquidity
You won’t like trading in an exchange with no liquidity. When an exchange has less liquidity it means that it is not popular, and there are better alternatives in the market. With less liquidity, you may not be able to buy your crypto instantly, and you might face significant slippage issues, which can be painful.
Always look at the exchange’s liquidity, try placing a few orders, and understand whether it matches your style of trading or not. With high liquidity, you can fill large orders instantly without price being affected during your order’s execution. Apart from this, it also enhances your trading and investment experience and provides a frictionless experience.
Staking Rewards
If your plan is to hold your cryptocurrency for the long run, it is good to have staking rewards and exchanges providing such features. Staking is a way to hold your crypto in a shared wallet on the exchange, where the exchange can use this holding to enable liquidity and stability to the crypto network. In return, you get staking rewards such as more coins, etc.
Staking is crypto’s way of fixed deposits, and you should look at this before selecting an exchange. Staking rewards change based on the network, crypto, and exchange. If you want to earn staking rewards, you should research across exchanges and get the best staking deal.
Competitive Rates
With so many exchanges around the globe, there is competition between exchanges to grow their market share and customer base. To do this, they offer competitive rates for trading, investing, and depositing crypto. As a customer, you should benefit from this competition and find the exchanges with the lowest rates and the best customer support.
With lower rates, you will not have to spend a lot from your investments in fees, and you can enjoy more profits.
Advanced Trading Options
When you are trading crypto regularly, you need advanced trading options on your exchange like market orders, limit orders, stop-loss, take profits, real-time data and charts, etc.Being one of the essential Finance app ideas for startups and established businesses, Crypto Exchange plays a vital role in boosting the trading performance & growth.
If your exchange does not provide advanced trading options, you may miss out on some great investment options, or you may run into losses when you aren’t actively looking at your portfolios. Always look for an exchange that is constantly innovating and adding new features to support its customers. There are many exchanges in the market that offer advanced trading options, and you should definitely look at them before making a choice.
Customer Support
Customer support is an essential feature, and you should not overlook it at all. When you face any issue, customer support is the way to reach out to the exchange for help. If the exchange does not have good customer support, they will not be able to help you timely and solve your errors.
Always look for exchanges that provide 24*7 customer support and have experts who can solve your queries related to trading, charges, or anything on the exchange.
Conclusion
Crypto investments can reap good returns, but that is only possible when you have an exchange that is dedicated to providing awesome services to its customers. You shouldn’t choose a subpar exchange when it comes to crypto investments, and the above pointers will surely help you find the best exchange for your needs in 2024.
Author Name:- Harikrishna Kundariya
Biography:- Harikrishna Kundariya, a marketer, developer, IoT, Cloud & AWS savvy, co-founder, Director of eSparkBiz Technologies. His 12+ years of experience enables him to provide digital solutions to new start-ups based on IoT and SaaS applications.