How to Find a Good Crypto Currency Exchange
The history of crypto currencies has roots in the 90s when the first attempts to create a fully digital currency were made by various enthusiasts. The technology was subpar at the time meaning that creating a robust system was not feasible. In 2009, the landscape of online economy changed forever when a group of developers introduced Bitcoin. Fully decentralized and extremely complicated for not tech-savvy people, Bitcoin had a slow start but exploded in 2017 reaching $7000 per BTC.
Today we have hundreds of crypto currency exchange platforms featuring various types of established coins such as Ethereum, Litecoin, Bitcoin, and Ripple. Finding the most convenient and useful platform is an important part of trading crypto currencies. An excellent, trustworthy coin market will open doors to the world of decentralized money for you!
Defining a crypto currency exchange
A crypto currency exchange is a specialized online platform that enables people from all across the globe to trade coins and tokens. These marketplaces are usually open markets that encourage speculative trading. While it is possible that overt speculation can inflate the value of a certain coin beyond any rational limits, trading also improves liquidity of currencies ensuring that they always have at least some value.
Bitcoin is commonly present on most popular and even least popular platforms due to being the most financially stable asset. BTC and Ethereum are the most stable ones and largely dictate the overall value of the global market of crypto currency trading. To top it all off, the Ethereum OS also acts as a technological foundation for many aspiring products that are featured on many exchanges.
“A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins. A bitcoin currency exchange is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency.”
What types of services can you expect to find on a crypto currency exchange:
- Purchasing and selling crypto currencies for other currencies or fiat money
- Monitoring prices of various coins in real-time
- Market analytics including technical and fundamental analysis
- Spot trading, futures, and other derivative commodities
- Investment options such as IEOs and ICOs
- Useful articles and guides
A great number of websites offer similar services which may feel quite overwhelming for a newbie. Analyzing an advanced coin market and separating it from hundreds of portals is tricky. Nevertheless, there are traits, functions and features that are more likely to be a part of reliable platforms offering high-quality service.
Check the crypto currency exchange website
Inspecting the website is what you should start from when choosing the right service provider. It is true for any online business. Good e-Commerce projects, content portals, and any other form of online website can be identified by a couple of very simple procedures. The principles that allow you to quickly determine whether a website deserves your attention apply to crypto currency exchanges really well.
UI and design of the coin market
Unfortunately, the popularity of crypto currencies made the exchange market a very enticing industry for scammers and simply inadequately skilled people hoping to make a quick buck. Many exchange platforms are badly designed and offer from little to no useful functionality. You need to pay attention to usability and aesthetic of the website to determine whether you need to further investigate its features.
Design plays a big role in both making the UI more comprehensive and the appearance of the website more palatable. A crypto currency exchange that wants to be popular and attractive to customers will focus greatly on creating a really good, contemporary looking website. Here are some simple yet important things to look for in the visual appearance of the website:
- Contemporary design with clear and understandable layout
- Easily readable typography
- Professionally looking color palettes
A dedicated business will definitely invest in the visual appeal of the website. Overly saturated colors, weird font choices and clunky layouts make a website look unprofessional reducing retention of visitors.
The UI is another hugely important design aspect that you should pay attention to. Modern businesses understand how a good UI can make clients appreciate the convenience and improve the user experience. A comprehensive UI is also very important for platforms that act as instruments. A crypto currency exchange is a website designed for active trading where seconds can have a difference. Having UI issues is detrimental for a website.
Here are some positive UI features that you can easily notice:
- Buttons and hyperlinks are grouped neatly and can be easily located
- The layouts offer information in logical blocks
- The menu has clear structure and intuitive navigation
- You can easily find all important information in a couple of clicks
Again, the website of an exchange must look good and have a navigation that won’t confuse you immediately. Check out the content of the website and make sure that all UX-related aspects feel convenient and professionally done.
Do they exchange Bitcoin and other staples?
Initially, some platforms were built to cater to a very specific, niche audience of BTC enthusiasts who were only interested in trading Bitcoin. With the appearance of more crypto currencies many exchanges started introducing all sorts of coins including even jokingly created like DogeCoin. However, the market soon identified several key currencies that received a lot of traction. There are several important assets that should be traded on a good exchange platform:
2. Other staple coins
3. Tokens of promising blockchain projects
It is important for an exchange to offer an opportunity to purchase Bitcoin since it is the most popular and stable coin out there and cater to blockchain enthusiasts who consider investing in emerging tech companies that focus on various blockchain products.
Here are some of the staple coins that have enough liquidity to be featured on most established exchanges:
- Bitcoin (abbreviated to BTC)
- Ethereum (abbreviated to ETH)
- Ripple (abbreviated to XRP)
- Litecoin (abbreviated to LTC)
While there are many other crypto currency assets that can be traded relatively safely, an exchange that does not offer access to the coins listed above are either losing a lot of business or focus on promoting very specific crypto currencies, coins or tokens.
Are there investment options?
Modern exchanges often promote new blockchain projects and offer their clients to invest in promising products. The vast majority of modern bloackchain-inspired products collect funding via initial coin offerings by implementing some sort of blockchain technology in their product and allowing users to generate value.
Some crypto currencies emerged from projects that initially were very specific products. For example, ETH is a coin that now represents an operating system that offers the smart contract functionality and a sophisticated blockchain infrastructure upon which other products can be built. There are two chains that are openly traded on various exchanges:
- Ethereum (ETH)
- Ethereum Classic (ETC)
Perspective exchanges usually offer their clients to participate in initial offerings from new projects that hope to become new Ethereum.
Test their customer support
If you are a blockchain and technology enthusiast, chances are you won’t have problems using any of the platforms that trade crypto currencies. However, the vast majority of people who want to get on the hype train are relatively inexperienced.
A good crypto currency exchange will offer high-quality customer support. Here are several important things that will tell you whether you will receive a good support from the website:
- The information about the service is comprehensive and laid out in a specialized section
- The FAQ must contain answers to most questions that may interest you
- The website should have an educational section with some basic information about crypto currencies
- The live-chat feature is quite important and there should be several communicational channels
A website that offers support via email, phone calls, messengers like WhatsApp, Telegram or Viber, and other forms of communication is definitely a more reliable business than a website without proper customer support options.
Search for advice on crypto currency exchanges
It is impossible to easily choose the one and only good crypto currency exchange. Binance, Coinbase, Cex.io, and Kraken are some good examples of websites that offer you an opportunity to easily purchase and sell various coins. However, they may not be the best choice in your particular situation. Some exchanges do not support certain types of fiat money or don’t have a good choice of investment options.
“…statistics was reported on Statista in a survey by Encrybit to understand cryptocurrency exchange problems. According to the survey, the top three cryptocurrency exchanges are Binance, Huobi, and OKEX. Other data points in the survey included the problems that cryptocurrency traders experience with cryptocurrency exchanges and the expectation of traders.”
We highly advice you to do your own research in regards to each exchange that catch your attention. Bitcoin trading can be conducted on most platforms. However, other forms of financial operations with various coins can be not available on some websites. How can you find information about these websites?
Search for answers on Reddit
One of the simplest entry points for a crypto currency enthusiast is Reddit. This is the biggest online forum on the internet that serves mostly as an aggregator of news with a very useful content rating system. Threads can be upvoted and downvoted by individual users. The ratio of upvotes to downvotes moves the content higher or lower in the priority and eventually makes the most popular threads popular.
Many crypt currency exchanges are promoting themselves on Reddit. You can read what other people think about new coins and trading platforms. There are tips on crypto mining, ways to get free Bitcoin, and many other great things that may help you out. Again, Reddit is a website where you won’t be able to meet professional bitcoin trader.
The forum is also a good place to search for basic advice on crypto mining. While the information offered by redditors can be outdated, you can definitely find really useful threads with people explaining high-level concepts in layman terms without overwhelming readers with incomprehensive terminology and technicalities that should be learned via trial and error.
Use messengers and review websites
Honestly, we do not recommend focusing on review websites where many reviews are actually promotional materials. However, they help with finding new up and coming exchanges and can be very good sources of news. While most reviews are not totally honest and transparent, you can certainly find useful bits of information.
A lot of people are discussing crypto currencies in Telegram groups. Many blockchain projects and new coins are often promoted via Telegram channels. We recommend creating a Telegram account if you don’t have one and subscribe to channels dedicated to crypto currency exchanges and news. Some of the channels that you may be interested in:
- UK Crypto is a good source of educational articles and latest news about all things crypto
- Whaleclub Traders is also a good source of information that focuses on trading tips
- Cointelegraph is like a very simple magazine that offers mostly news
- CoinMarketCap is a channel that has a lot of relevant information about coin prices
Official Telegram channels of coins that are publicly traded usually promote platforms where they are traded
Test the platform
After choosing good-looking, convenient, versatile, and relatively well-known websites, you should start testing. The testing process is quite simple:
1. Create an account and deposit a small sum of money
2. Make a couple of transactions and buy coins and tokens
3. Exchange coins for BTC and other staples
4. Withdraw funds and check for commissions
This simple procedure will allow you to see whether the website actually works and operates honestly. The withdrawal time and payment systems that can be used to both deposit and withdraw funds also will be tested practically. A company may promise to process withdrawals in a couple of minutes but the process may take literally days. It does not necessarily mean that the service is a residence of internet scammers but it may definitely reduce the value of the service significantly.
The main takeaway
Finding a good crypto currency exchange is quite hard for those who do not know much about trading and investing online. However, you can always find a good website using very simple tips described above. While blockchain projects and crypto currencies sound really complicated to inexperienced users of the internet, the basic laws of e-Commerce apply to them just as they do to other online businesses. Good websites that want to be competitive adhere to the same principles as all other websites: invest in reliable architecture, bring in reliable technology, focus on design and usability, and offer high-quality service.