If you are thinking about putting your money in Crypto exchanges, you need to opt for the best tools. You should start by choosing the best Crypto wallet and broker. Choosing these two things is crucial, and there are several factors that you have to consider.
It is also usual to get confused between so many options, so go through this to have an insight on Hankotrade vs KOT4X. Comparing different Crypto brokers will help you to choose the best one.
It is always a must to have a proper understanding of your requirements before choosing any broker. Then check the features that the exchanges are offering you. Then on the basis of your requirements and the offering, pick the right one for you.
What Should You Consider While Choosing A Crypto Broker
Although you have a clear understanding of your requirements and choose the best possible Crypto broker, there are some things that you should not compromise. While you are finalizing any Crypto broker, you must consider a few things.
Here, in the article, we will talk about those things, and it will help you to pick the perfect one.
No. 1: Security And Authenticity
It is non-negotiable that you conduct research before choosing a legitimate and secure platform.
The most recent hacking of Coincheck serves as one of the most serious warnings to all those prospective Cryptocurrency investors to look into the security protocol of the exchange.
The pump-and-dump scheme is one of the major issues in the Crypto space. Here, Crypto exchanges hold the responsibility for preventing these frauds.
No. 2: Supported Tokens
Most of the Crypto exchanges support the two most popular Cryptos, Bitcoin and Ethereum. Different exchanges support different Cryptocurrencies. While Coinbase is known for trading only 4 major Cryptocurrencies, Binance lets you trade with a long list of altcoins.
As per your risk-taking capability, you should choose an exchange which supports the tokens or Cryptocurrencies that you are actually planning to buy. Never limit your accessibility while you are considering other major factors.
No. 3: Buying Methods
For different platforms, the method of purchasing Crypto coins varies. A lot of exchanges need dep[osuits by bank transfers, some accept debit and credit cords, some accept PayPal, while others only use Crypto Coins for purchases.
In case you do not hold any Cryptocurrency before joining an exchange, it is a must for you to choose a platform where you can use your fiat currencies. At the same time, you are also required to consider the duration of the purchase process.
No. 4: Trading Platform
Cryptocurrency exchanges are of 3 main types. Before choosing any Crypto exchange, you need to know what the types of exchanges are. Here, trading platforms are the most common ones.
Apart from that, P2P exchanges, like Cointal, connect buyers and sellers to interact directly and rely on both parties to agree to any type of given transaction. There are also Cryptocurrency brokers, such as AvaTrade, that operate in a similar way to the forex brokers.
No. 5: Fee Structure
Both the transaction fees and fee structures are different in different types of exchanges. So you need to have a look at these two things while choosing a Cryptocurrency exchange. There are also some exchanges that also provide discounted fees.
It especially occurs when any exchanges own a token that is also used in order to complete transactions. In addition to all these, it also can relate to how many tokens you have. Other exchanges only charge a transaction fee on sales and allow purchases free of f