There are so many options available now when it comes to cryptocurrency exchanges. Each offers its own set of features, advantages, and disadvantages. The features that a newbie trader who just decided to purchase bitcoins for the first time will need are very different from the features a professional crypto trader might want. If you’re looking for an exchange you can keep using long into your trading journey, it’s important to know what to look for as a newbie and as a professional.
Important Exchange Features for Newbies
The most important feature for a new cryptocurrency trader is the convenience of exchange. There is already enough to learn when you’re a brand new crypto trader, the exchange you use shouldn’t make things even more complicated. It should be straightforward to set up, navigate around, and use.
It should also have easy options to buy and sell Bitcoins. The first thing you need to do is get your hands on some cryptocurrency and start trying things out. These days, there are lots of exchanges with clear buy/sell options. Most of the time it will be a simple button to buy Bitcoin or another cryptocurrency at a set price. The downside of this is that it’s usually a little more expensive.
Payment options are another important factor for new traders. Credit cards and bank transfers are two of the most common payment options from the big exchanges. Some of the professional-focused Bitcoin exchanges have more limited payment options.
Great customer support can also be extremely important for newbies. Things inevitably go wrong when you start trading cryptocurrency. When this happens, it’s invaluable to have someone on the other end of a phone or chat window helping get back on track.
Important Exchange Features for Pro Traders
Pro traders have a lot more experience and typically trade in much higher volumes than amateur traders. As a result, they usually look for different things when picking a cryptocurrency exchange.
Firstly, professional traders should look much more closely at the price and fee structure of the exchange. When you’re trying to earn money trading cryptocurrencies, tiny differences in fees can quickly build up over time. Every exchange has a different pricing structure. Some will charge different flat fees and commissions based on how much you trade. Pro traders should choose exchanges that give them an acceptable overall cost based on their own trading volume and style.
Trade volume is an important factor as it will determine the currency pairs with which you can successfully trade. If an exchange supports a cryptocurrency, but the trade volume on the exchange is low, you won’t be able to effectively trade it to earn a profit.
Specific trading features are also important to professional traders. Margin trading and leverage can be used to amplify gains (but also losses) from trades. Other trading features like mobile apps can help make well-timed trades on the go.
Lastly, security is vital to professional traders. Pros often trade much larger quantities of cryptocurrency, so it’s paramount to ensure the exchange you are using is secure and trustworthy. Many cryptocurrency traders have learned this the hard way in the last 10 years.
Cryptocurrency Exchanges for Newbies
CEX.IO is an exchange that has all the ideal features for new cryptocurrency traders. Account set up is straightforward and there’s a host of payment options for buying and selling Bitcoin and other cryptocurrencies. It’s an exchange that boasts one of the best user experiences in the industry, a solid 24-hour customer service line, a mobile app for on-the-go trading, and a spotless record of keeping user funds safe.
Coinbase is another example that’s often declared the best Bitcoin exchange for newcomers. They put a lot of effort into making sure that anyone can sign up and start buying and selling quickly and easily.
If you need an exchange that doesn’t require identity verification, then LocalBitcoins is another option that’s easy for beginners. Simply go to the website and search for a seller that accepts your payment method. But, you need to be much more careful using peer-to-peer exchanges like LocalBitcoins. It’s a bit like using eBay. You need to make sure the seller or buyer has a good reputation on the site.
Cryptocurrency Exchanges for Professional Traders
The two large exchanges mentioned above, CEX.IO and Coinbase both offer good experience for pro traders too. Coinbase calls theirs Coinbase Pro. The platforms offer features such as margin trading and leverage, while their popularity means they have an exceptional trading volume on many different cryptocurrency pairs.
Binance is another top pick among professional traders. It’s the self-proclaimed “world leading cryptocurrency exchange” and offers a huge array of cryptocurrency and fiat currency trading pairs. What started as a Chinese exchange is now headquartered in Malta due to the favorable cryptocurrency laws. The great thing about Binance is that it offers two usage modes, one for beginner traders and one for advanced traders. In reality, neither are as easy to use as CEX.IO or Coinbase.
Bitfinex is also a popular option with great trading volumes and many of the features desired by day traders.
Newbie or Pro, Pick Your Exchange Carefully
It can be confusing when you’re just starting out with crypto trading. With so many exchanges offering so many different options and packages to traders, it can be difficult to know where to start. It can also be difficult to know when to swap exchanges for something better.
If you focus on getting the basics right, you’ll be fine. Make sure you can buy and cash out crypto from your bank or credit card. Make sure the exchange offers a level of customer support you require, and that it’s legal and available in your country. Also, make sure that lots of other people are actually using the exchange. If you follow these basic rules, you’ll be able to find a great cryptocurrency no matter where you lie on the scale from a newbie to a professional.
Video – Cryptocurrencies
Interesting related article: “What is a Cryptocurrency Exchange?”