Topic: Things to consider when choosing a cryptocurrency exchange (Read 263 times)

Well no exchange is 100% secure. Even binance exchange was hacked earlier this year. The main thing to consider while choosing the exchange is the volume. The more volume the exchange has, means more people are willing to deposit and trade on those exchanges.

Binance was hacked this year and yet they never closed down,its one reason why i choose binance over other exchanges cos if what happened to binance happen to other exchanges they will exit

Yea I never leave coins in an exchange, period. It's not even that I necessarily think the exchange will get hacked, but I just like knowing I have full ownership over my currency and it's not in some "pool". I hate the feeling of sending my coins into an "abyss" like an exchange, because as soon as you deposit: they aren't yours anymore. I always stick to the rule of immediately depositing to my own wallet. Exchanges are good at transacting trades, but they aren't your bank, nor should they have to be.

I feel like you could have picked better criteria in order to rate the exchanges. While I might want to know what the minimum deposit is or what coins the exchange offers, there are some other details that are really important.

One popular exchange you mentioned in your post was Binance. I feel that you should be a bit more specific because there are some things you would definitely want to know before going through the whole sign-up process. Instead of having it separated by "criteria" I think it's also better to consolidate based on exchange, since people are trying to find a single exchange.



Binance

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Pros
     (+) Extremely low fees
     (+) Impressive selection of cryptocurrencies
     (+) Avoid KYC (low hassle)

Cons
     (-) Does NOT accept fiat (USD, GBP, etc.)
     (-) Faulty and often annoying security features (2fa issues)

Is Binance right for you?

If you like to trade a lot (especially between cryptocurrencies) Binance is definitely the best option. They have the lowest fees on the market and support the largest supply of coins. If you already have a place to buy Bitcoin (ie. Coinbase) then depositing will be no problem. Unfortunately Binance does not take fiat deposits, but you get to dodge most of the KYC limits.

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Do you think this format is clearer or not? I think that making a lost of pros and cons is a lot easier to read and gives you a better overall understanding of the subject. Each exchange has it's own strengths and weaknesses. A pro/con list allows readers to make an informed decision without reading through each section and having to reference back.

A lot of volume on exchanges is fake.  And you will notice that only when you will deposit coins on that exchange and see you cant trade them without move market there drastically. Beside that it dont matters much. If you pull your coins off exchange as soon as they are exchanged you dont care if next day that exchange gets hacked. That dont change anything for you.

Run away from exchanges with anonymous teams because they can turn scam anytime,for example binance dev is a well known man who is not hiding from the public eye,that's what I call good business men

This one is the mostly needed before anyone wants to trade in an exchange. Do google search/bitcointalk with the particular exchange, with that, one can get the best outlook and truth behind all the exchanges.

Imo the most important is not the trading fees or withdrawal fees or whatever those points you mentioned. The most important is the reputation, especially in forums such as Reddit and bitcointalk.

Do they hold funds hostage ? Do they demand kyc to withdrawal? Were they hacked in the pas?t how did they deal with that?

Security always first.

Overall reputation and word of mouth is good but I wouldn't give much attention to reviews. Especially paid reviews and ads for new exchanges.
Paid reviews are a big reason why there are so many scams in this industry and they are part of the problem. 

Thanks for sharing this information. You can include the reviews/reputations of the exchange. Also, the different payment methods supported like credit card, debit card, wire transfer etc. it will be convenient to use if the exchange provides more buying options. Even these factors are important before choosing any crypto exchange.

Also you can add customer support service which is really not good at many exchange so people need to wait for weeks to get response if they met with some issues.

Done.
Thanks


Yes, that's what they call subjectivity.

I think you should remove those referral links from your post.

I'm quite surprised to see that you don't put Coinbase on that list, and better yet there is no IDEX and instead Forkdelta. Well, maybe that's what they call subjectivity. Anyone might have different lists I guess.

I think this article is valuable for bitcointalk users so I am writing it here from my website. I will attach original post link under this post


There are 200-300 exchanges to trade in cryptocurrency. We need to look at a few things when selecting an exchange to trade a coin. The current exchanges can be viewed Here

01 Whether the coin is listed on the exchange
02 Credibility
03 Trading volume and Spacing / Size between buy-sell order
04 Deposit withdrawal fee
05 Deposit withdrawal limitations
06 Minimum confirmation required for a Deposit and withdrawal
07 Minimum tradeable token size
08 Taker maker fee
09 Security status

01 Whether the coin is listed on the exchange

If the Coin is listed only on one exchange then you have to buy-sell in there.If Coin is listed on 2-3 exchanges, then you can consider the following.

02 Credibility

From these points, credibility is a very important factor. Because in order to trade we have to Deposit in crypto or USD. So the crypto you deposit should be responsible for the exchange. Therefore, it is not advisable to trade in small exchanges with a low volume that is not well known.

03 Trading volume and Spacing / Size between buy-sell order

The other important point is the gap between trading volume and buy sell orders. It is not advisable to use exchanges with a large gap between buy sell orders. In such exchanges, we have to sell coin buy or sell at a price that is higher or lower than the market price.The other thing is that the buy sell order's size. Imagine you are selling $ 10,000 ETH but all the buy orders on the trading exchange are $ 5000 and you only have to sell ETH for $ 5,000. So, always choose the trading volume of the coin you are trading in.normally if the Trading volume is too high, often there are large buy-sell orders

04 Deposit withdrawal fee

Most exchanges do not have a crypto deposit fee. But there may be some exchange deposit fees. Be aware of it. Every exchange charges a withdrawal fee because you have to pay a blockchain transaction fee when you withdraw the crypto. However, the exchange fee is charged 10 times as much as the blockchain transaction fee. However, the withdrawal fee is different from one exchange so be careful about that. If you want to withdraw crypto from exchange to an another exchange, use a coin with a low withdrawal fee. I'll post about that in a future post.

05 Deposit withdrawal limitations

There are some exchanges where they say that if you deposit this coin, you  have to deposit this much. If not it won't show it in the balance. So if you deposit too few, you have to deposit more untill that number, or you get stuck in the exchange. If you don't have minimum withdrawal amout you can not withdraw that amount .That is why this matter is a must-see

06 Minimum confirmation required for a Deposit and withdrawal

This is especially true for the less popular coin. The popular coin we use often doesn't have that much effect. When you deposit a coin in any exchange, Confirmation means that how many blocks that need to compleate before balance is displayed.  ex- If you deposit ETH to binance, binance will show ETH in your balance when the block you deposited is 12 blocks ahead. A block of Ethereum is going to take 1 minutes. But there are some exchanges where some coins have 50 - 100 confirmations.So some coin has to wait for hours to be deposited on some exchanges. If you suddenly want to sell, you can't. As a result, the number of confirmations to be deposited  is very important to the less popular coin.

07 Minimum tradeable token size

Every exchange has a minimum buy sell order size. So you can't trade for less than that. In that case, the deposited crypto will get trapped. So if you want to deposit less than $ 50, you should look for that too.

08 Taker maker fee

Taker / maker fee is the fee charged by trading. In most exchanges this is like 0.1%. This is not a big deal.

09 Security status

The other is the security status of the exchange. Has the previous exchange been hacked or not?

Considering many of these, the following exchanges are the best exchanges to trade at the moment. It is better to have your ID verified in these exchanges and perhaps pay $ 10- $ 20 airdrops / Trading contest so that the giveaway can be missed when the ID is verified.

01 Binance
02 Okex
03 Huobi Global
04 Bitforex
05 Cex.io
06 Coinbene
07 Bittrex
08 Digifinex
09 Binance Dex (Decentralize)
10 Forkdelta (Decentralize)

While in the crypto field we have to use the main exchange as well as many small exchanges. However, it is not wise to keep a large amount in exchange without trading daily. Because the security was high, the binance exchange, the main exchange, was also hacked. It's best to put crypto in a private wallet

Post from my website -  https://www.cryptooos.com
link to post - https://www.cryptooos.com/2019/07/things-to-consider-when-choosing.html