The world of cryptocurrencies is rapidly expanding, with new coins popping up every day. While keeping track of all these different coins may seem challenging, the even more incredible difficulty lies in finding where to trade them for fiat currency or other cryptocurrencies.
You have two options when choosing an exchange: go for a large, reputable platform with high trading volume, but at the same time higher fees and more strict verification procedures – or go for a smaller platform with lower trading volume but minor hassle getting started – potentially tighter spreads, lower fees etc. Saxo Bank Dubai is a good example of an excellent exchange.
Choosing which exchange is suitable for you can be difficult, but here are some tips to get you started.
Decide which coins you want to trade
When choosing an exchange, consider what coins you want to trade. If your goal is to obtain cryptocurrencies to diversify your portfolio or HODL long term, an exchange that offers more coins is not necessary. However, if you are looking for short term trading opportunities on specific altcoins to generate a profit and increase in value of your holdings, it would be wise to look out for exchanges offering the most liquid and highly traded pairs. These involve looking at those with high liquidity and the highest daily trading volume.
Determine the fees they charge
Once you’ve picked the coin(s) you’re interested in, check out what fees will be charged when using the exchange platform. Different exchanges have different fees, with some charging a flat fee on all transactions and others levying a percentage of the coins traded. Make sure you choose an exchange that best fits your needs, whether it be one with no deposit fee but high withdrawal fees or one with low fees but much stricter verification procedures – all depending on what you want to achieve.
Know their reputation
When choosing an exchange, check out what other people say about them in forums such as Bitcoin Talk or Reddit. Do they have good customer support? Are they known for having slow withdrawals? What kind of complaints can you find online? With so many options available when deciding where to trade cryptocurrencies, you should consider this factor when making your choice.
Check what the supported countries are
Some exchanges will only let you deposit and withdraw cryptocurrencies if you live in certain countries due to legal restrictions or even just their geopolitical affiliation. While some exchanges have worldwide coverage, others cover specific jurisdictions only – so check out the list of supported countries before signing up.
Know your limits
Different exchanges offer different levels of verification, with higher tier levels allowing users to deposit more significant amounts or trade more frequently. Always check what limits apply for each verification level and which payment methods are available. If you require more personal information (i.e. bank details) than other exchange members, ensure this is specified during the signup process.
Check out the available payment methods
While some exchanges operate solely on cryptocurrencies, others offer various fiat payment options such as credit cards, bank transfers and more. Suppose you only want to deposit/withdraw cryptocurrencies. In that case, this is not important. However, if you are looking for a way to purchase cryptocurrency with a card or via a bank transfer, look for an exchange that offers the most comprehensive list of countries supported and payment methods available.
Know their customer support service
Finally, consider how quickly they respond to complaints when choosing an exchange. In recent months, exchanges have come under fire for poor customer support regarding slow withdrawal times and even frozen funds. While these problems may be rarer than we initially thought (at least in the more extensive exchanges), make sure you find a way of contacting an actual human being should you encounter any issues with your account or withdrawals.
You can contact customer support via formal email contact addresses, social media platforms such as Facebook and Twitter, or even Telegram instant messaging. Look for one that operates across all three of these to ensure they’re able to get back to you on time.