Top Features To Look For In An Exchange

Top Features To Look For In An Exchange

 

WHAT IS A CRYPTOCURRENCY EXCHANGE?

Cryptocurrency exchanges are websites where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency like US Dollars or Euro. And you’re actually on an exchange, I mean, Bitazza really is an exchange so… now you know.

 

FEATURES OF CRYPTO EXCHANGES

Most investors look for certain features an exchange provides.  The top features are:

 

1. Large selection of trading pairs

The top coins are of course Bitcoin and Ethereum, but investors interested in trading altcoins, which are alternatives or substitutes to Bitcoin, generally look for exchanges with a large selection of altcoin trading pairs.

 

2. Clean and simple user interfaces

Traders look for interfaces that are easy to navigate, and easy to understand. Some exchanges also have very good charting and technical analysis tools.

 

3. Low trading and withdrawal fees

For every trading and withdrawal transaction, exchanges charge a certain percentage of the amount transacted.

 

4. Many different deposit/withdrawal methods

Some exchanges only allow you to deposit cryptocurrencies, while others provide the flexibility of bank transfers using conventional money and charging credit cards.  Similarly, for withdrawals, some exchanges even provide a free debit card for you to make purchases.

 

5. High Liquidity

Liquidity is arguably the most important feature for an exchange, especially for cryptocurrencies, where traders can opt to quickly cash out when the time is right for them. This is particularly true for those engaging in Futures Trading where there is potential to make big profits. So, high liquidity is a must for an exchange to be taken seriously.

 

6. Speed

This basically means how fast transactions are completed. There are many exchanges that put people off due to their stale nature and turtle speed. Less people give their time of day to these exchanges which could pretty make them irrelevant in the long run.

 

7. Security

Exchanges now require two-factor authentication. This is to prevent their accounts from being hacked.

 

8. KYC

More and more exchanges now require KYC.  KYC or Know Your Customer is a process of verifying the identity of a customer to prevent exchanges from being used for money laundering activities.

 

9. P2P transactions

Some exchanges allow users to easily transfer any asset to other users by ID, phone number, or via email with minimum commissions around the world.

 

10. Mobile Support

Many exchanges now offer their services for mobile users.  There are trade applications that can be downloaded and allow trading in real-time. The apps, like the exchanges, have robust security and offer global trading.

 

11. Reputation

Some exchanges have been around longer, are well-regulated and less prone to hacking or scams.

HOW RANKING OF THE EXCHANGE IS MEASURED

Every exchange calculates the price of the asset (e.g. Bitcoin) based on its own volume of trades, as well as the supply and demand of its users. This means the bigger the exchange, the more market-relevant price it provides. Thus, crypto exchanges are usually listed or ranked based on the volume of trades. This list is available here.

As we move into 2020, governments are placing increased scrutiny on cryptocurrency exchanges, demanding compliance with regulatory requirements. With this in mind, your best bet really is to choose an exchange that is regulated and guess what? (Humble hard-sell coming) Bitazza is fully regulated by the Securies & Exchanges Commission of Thailand. You’re welcome.

 

TOP EXCHANGES

With all the factors described above, we can conclude that there is no one-fit-for-all cryptocurrency exchange.  However, the following are the top five that will witness bigger growth next year:

 

Coinbase

Key features include support in more than 30 countries, high liquidity and buying limits, and easy way to purchase bitcoins.

 

Binance

Key features include the highest volume and have one of the best mobile apps in the business.

 

Bittrex

One of the largest cryptocurrency exchanges. It supports many different types of cryptocurrencies and has a brand-new interface.

 

Luno

One of three crypto exchanges (the other 2 are Sinergy Technologies and Tokenize Technology) that the Malaysian Government has approved to operate as a crypto exchange.

 

LocalBitcoins

One of the best peer-to-peer trading, LocalBitcoins is suitable for users who are concerned with their privacy and allows for users to trade among themselves.

 

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