With over 400 million users worldwide, crypto ownership continues to grow.

If you’ve been looking to diversify your investments, you may be considering buying crypto. But before you purchase your first crypto coins, you need to know how to pick a cryptocurrency exchange.


Because choosing a crypto exchange will either make or break your crypto trading experience. A good exchange will make you a successful, happy trader, while a bad exchange may leave you penniless.

Here’s what to look for when choosing a cryptocurrency exchange.

What Is a Cryptocurrency Exchange?

Invest in Cryptocurrency

A cryptocurrency exchange is a platform where traders and investors can buy or sell currency. Usually, they also allow for the exchange of a fiat currency (such as the U.S. dollar) for crypto.

If you’ve used a brokerage account before, learning how a cryptocurrency exchange works is easy. Both have similar functions.

Crypto exchanges are usually accessed through the web or an app, allowing trading with cryptocurrencies to happen quickly and easily.

How to Pick a Cryptocurrency Exchange

There are dozens of options for exchange platforms. However, when it comes to picking the right cryptocurrency exchange, there are some key factors you must look for:

Cryptocurrency Exchange

  • Jurisdiction
  • User-friendliness
  • Security
  • Choice of Assets
  • Fees

First, you need to find which exchanges serve customers in your jurisdiction. An exchange’s jurisdiction indicates where they are allowed to legally do business, as well as its target audience. The latter also serves as an indication of what languages they support – which is important not only for navigating the exchange but for contacting customer support (if needed).

You should also look at how user-friendly an exchange is. This is especially important if you’re new to trading. A cluttered screen, too many options, or an unintuitive design can be intimidating.

Security is a must. Holding coins on an exchange means you are trusting your investment with someone else.

In the event of a security breach, your investment could be wiped out. Some of the largest crypto hacks in history have led to losses in the hundreds of millions of dollars.

Your ideal crypto exchange should also offer a wide choice of assets. Most will have popular crypto coins such as Bitcoin, but you may also want to invest in lesser-traded coins. You could also check out a hedge fund and its cryptocurrency hedge fund investment strategies to maximize your returns.

Fees can be a surprise cost when trading crypto. Some exchanges charge a fee for any type of transaction. Others may only extract a fee when you purchase crypto.

Be wary of withdrawal and card fees. Some exchanges charge very high withdrawal fees. Some allow crypto to be purchased with a debit or credit card, but they may charge an additional fee for this.

Cryptocurrency taxes

Other Factors to Consider

Other factors that you may want to consider when picking an exchange are insurance, deposit and withdrawal limits, reputation, and transparency. The latter refers to how open and upfront the exchange is about its security, fees, and services.

Choose Your Exchange Platform Wisely

Take your time to consider all of your options when deciding how to pick a cryptocurrency exchange. Like all investments, there is a risk to crypto trading. You don’t want to start investing in the wrong exchange, only to be hit by hidden fees or lose your investment due to a cybersecurity attack.

If you liked this article, check out the rest of our site for more finance and investment advice.

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