Factors to Consider When Choosing a Cryptocurrency Exchange - Coindoo
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Factors to Consider When Choosing a Cryptocurrency Exchange

Editorial Team Avatar
Nov 9, 2021
4 min reading time

While investing in cryptocurrency has been preached by leaders in the financial market, many people perceive it as an overwhelming undertaking. For the most part, this is because cryptocurrency appears to be an intricate financial market. Even so, such is not the case. With a clear understanding of the fundamentals, anyone can get started on a successful path into crypto trading. Since cryptocurrencies have become a significant force in the investment world, having a firm foundation is vital for prospective investors. 

Novel investors in cryptocurrency have their work cut out for them. Apart from evaluating the best digital currencies to invest in, they must also decide where they’d store these financial assets and the mode of transaction. Perhaps one of the more crucial decisions crypto investors must make is picking an appropriate cryptocurrency exchange. Essentially, these are platforms on which people trade in cryptocurrencies. Many industry professionals would recommend excellent decentralized cryptocurrency exchanges like GIBXSwap since they’re less prone to cyberattacks. However, there are plenty of factors to consider before picking a cryptocurrency exchange. Fortunately, this article highlights some of the most vital factors to consider when choosing a trading platform to help novice investors get off to a good start. 

Choice of Assets

Perhaps the most significant factor to consider when picking a cryptocurrency exchange is the asset choice available. Despite how good a crypto exchange is, you wouldn’t choose it if it lacks the digital currencies you want. While virtually all cryptocurrency exchanges have major players like Bitcoin and Ethereum, thousands of other digital tokens are worthwhile. For this reason, it would be wise to make sure you can find your desired cryptocurrency before signing up for any exchange. 

Level of Security

Cryptocurrencies are digital assets that can amass value over time and even cost tens of thousands of dollars per token. Consequently, any investor would want to keep such an asset as safe as possible. The authenticity and level of security will determine how secure your investment will be. If the platform you choose suffers a cyberattack, you end up losing all your hard-earned profits. Consider the platform’s security layers and check for features like multi-factor authentication. Still, regardless of the cryptocurrency exchange you choose, it’s always a good idea to keep your investment on an offline wallet for added security.

Ease of Use

Depending on your level of expertise in trading cryptocurrencies, the ease of use of an exchange platform may or may not be a priority. Even so, like in any other form of investment, speed and accuracy are crucial traits. For this reason, investors should opt for exchanges that have an easily understandable user interface. This way, it would be easy to navigate and make crucial decisions in a split second. Fortunately, many cryptocurrency exchanges have different views depending on an investor’s level of expertise. 


Liquidity plays a principal role in trading cryptocurrencies. Investors use the liquidity of a cryptocurrency exchange to make trades without significantly moving the market. Therefore, the cryptocurrency exchange you choose should have large volumes of orders at any given time to avoid driving the price too high. Hence, a cryptocurrency exchange needs to have a significant number of users to facilitate the trade of digital currencies. Less liquidity can also worsen the volatility of cryptocurrencies and cause the prices to rise and fall more dramatically.

Final Thoughts

For one to successfully invest in cryptocurrency, there are plenty of factors that they should consider. Still, perhaps the most significant consideration every investor should have is choosing the right cryptocurrency exchange. While this may seem overwhelming, using the tips presented above can help you gain the much-needed headway. 

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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