The cryptocurrency market exploded in 2017, with Bitcoin going from $900 to over $5,000. As the market grows and more people get into it, exchanges are also getting busier. To find the best crypto exchange, like Bitfinex for US customers, you should consider some crucial things before committing. This blog post will discuss what qualities make up a leading cryptocurrency exchange so that you can find one that meets your needs!
Good Security
If you’re going to keep a significant amount of money in exchange, security should be the number one thing you look for. You want your coins stored there as long-term investments or trading tools, so they must be secure from theft and other cyber-attacks.
Security is often taken care of through cold storage wallets treated with chemicals to avoid them being hacked. The exchange should also have proper security protocols in place, including multi-factor authentication to protect your accounts and two-factor authorization for withdrawals if you want an extra layer of protection on the wallet.
Excellent Liquidity
Liquidity is an essential factor for cryptocurrency exchanges. If you want to sell your coins, there need to be enough buyers buying them at the same time so that it’s not difficult or impossible to get rid of them. It can also work in reverse where you need some liquidity when buying new coins and don’t want any delay because others are selling simultaneously.
Reasonable Fees
Exchanges can make a lot of money by charging high fees, which can often drive away customers. Look for an exchange with reasonable prices across the board – buying and selling, deposits and withdrawals. There’s no need to overpay when you’re already taking on risks by investing in cryptocurrencies!
Additionally, some exchanges offer discounts for those who use their services more frequently. Bitfinex offers a tiered fee structure where the less you trade, the higher the fees. It encourages traders to make more frequent trades and keep the market active.
Range of Cryptocurrencies Supported
One of the most appealing features of cryptocurrency trading is that there are so many options to choose from. Many exchanges have a limited number of cryptocurrencies or ones that they prefer for some reason. These restrictions can make it challenging to invest in something different from those exchanges offer. The best exchange will have several popular currencies and some of the more obscure ones. It gives you various options to choose from and increases your chances of finding an investment that will pay off.
So, these are some of the qualities that make up a leading cryptocurrency exchange. By considering them before making your choice, you can ensure that you’re getting the best possible service for your needs. Bitfinex is an excellent example of an exchange that meets all of these criteria and more!
