What To Look For In A Crypto Exchange

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One of the first steps to start trading cryptocurrencies is choosing a crypto exchange platform. It’s where you purchase and sell cryptos. These platforms usually indicate the current and historical market prices of crypto coins, allowing you to analyze trends and trade at your most suitable times.

There are a number of them in the market, such as Coinbase, Binance, Kraken, Gemini, Bitfinex, and Swyftx. You may want to check out this Swyftx review for a deeper insight into the crypto exchange and why it appears in the list of the best ones globally. Your goal is to assess the service quality for each and choose the most suitable one for your crypto trading needs. With that in mind, below are eight things to look out for in a crypto exchange:

What To Look For In A Crypto Exchange

Security And Credibility

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It’d help to select a secure platform to ensure your funds are safe. Remember, cryptos aren’t usually regulated by the government, which exposes you to more risks of theft. It’s not uncommon to hear of individuals who’ve lost their funds after being lured by fraudulent platforms.

Thus, ascertaining their credibility is critical. You ought to work with one that has at least been in the market for several years and has served numerous customers. Also, read the terms and conditions page to ensure everything is in place, and there’s no hidden clause.

Furthermore, remember that all online transactions are prone to hacking by cybercriminals. So, it’d help to check the security standards of the crypto exchange site. It could be a two-factor authentication or a mobile exchange app that captures biometric login such as facial recognition or fingerprints. The site should also have a robust firewall to prevent hackers from stealing your information.


A stable platform with enough liquidity enables you to buy and sell cryptos anytime. It simplifies the conversion of your money into coins and, conversely. Thus, they should have a large volume of orders. They should also have a lot of users with a significant amount of assets who buy and sell them frequently. It’ll help, especially if you want to purchase a highly-priced currency. The crypto exchange platform should process your order fast enough, bearing in mind that delays may significantly alter the prices.

So, be on the lookout for pricing disparity when transacting because it could indicate the exchange is undergoing low liquidity. You could also utilize trading simulators to assess the crypto exchange’s performance.

Trading Fees

Fees vary from one crypto exchange to another. Thus, look for a platform that details all relevant charges firsthand without concealing anything. Ideally, buying and selling cryptos attracts a fee, usually a percentage of the traded amount or a fixed price. You also pay a small amount when making withdrawals or depositing cash. The lower the fees, the higher your profitability in the long run.


Cryptos are also taxed. Therefore, you must know if the platforms you’re working with will help you comply with the law. It’s even advantageous if you work with a crypto exchange within your area of residence. You’ll be sure they’re aware of the tax deadlines in your region and give you crypto forms on your profits and losses so you can fill them in. Cryptos outside your area of residence may fail to send these documents on time.

Deposit Options

Various crypto exchanges have different deposit options, from bank transfers to credit cards, wire transfers, mobile money, or online wallets. Therefore, choose a platform that supports your preferred deposit method, which you frequently use on other transactions.

Simplicity To Use

You need a platform you can quickly navigate without experiencing any complications. Trading crypto is already a hustle, and you wouldn’t want to complicate matters further by using a non-user-friendly platform. Their user interface should be insightful, with enough educational material to simplify crypto trading. The simpler it is to use the platform, the more you’ll enjoy buying and selling cryptos.


Hackers could steal your data no matter how strict the crypto exchange security measures are. So, work with a platform with insurance so you can be confident you can get your money back should any problem arise.

Storage Options

A reliable crypto exchange should provide you with safe storage options. The two common options are cold or hot wallets. A cold wallet stores crypto offline and is suitable for accounts with a lot of funds. On the other hand, hot wallets allow you to keep crypto online, an effective method for smaller accounts.


Crypto is a lucrative form of investment that’s continuing to gain popularity. Thus, even as you’re considering starting your trading hobby or career, it’d help if you work with a reliable crypto exchange platform that can make your buying and selling cryptos simple and enjoyable.

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