Cryptocurrency trading is the next big thing for investors. Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are growing in popularity around the world, with nearly 50 million Americans now owning BTC as just a single example of this resurgence in crypto interest. Trading crypto coins and tokens are a great way to bolster your total asset portfolio, but selecting an exchange that suits your needs can be tricky for beginners in this trading space.
Making the choice couldn’t be easier with this guide. Of course, the only way to really understand which crypto exchange (among the crowd of cryptocurrency exchanges you can choose from) is right for you is to test each one of them. That said, if you take these elements for the advice they give, streamlining the process and hunting for the right mix of exchange fees and included plugins and features can be done effortlessly.
The best crypto exchange is the one that solves your individual trading “problem”
Traders looking for the best crypto exchange often approach this hunt as a consumer that exists within the larger matrix of investors. However, this couldn’t be worse for your individual investment needs. Every investor approaches the market with their own “problem” in mind. Simply put, everyone who invests is looking to satisfy a specific need. Some investors want to save to buy their first home, others want to build a savings account for the long term. Still, others want to interact with the trading space on a daily basis and generate routine profits that can ease their cash flow burdens and form a new and reliable income stream.
The best cryptocurrency exchange for you is the one that best suits your unique purpose in the investment game itself. Every trader is different, so everyone will have their own specialized needs and wants when it comes to using a cryptocurrency exchange to facilitate their trades. Once you’ve honed your approach to the market, you can work on a crypto exchange that fits your specialized use case.
Think of the costs
This is one of the most important components when choosing a crypto exchange. The fee structure that Coinbase, Coinbase Pro, Kraken, or Binance will charge you is essential knowledge. These trading costs associated with trading your portfolio on Coinbase, Binance, or elsewhere will eat into your profits. Trading costs are unavoidable when it comes to making trades, but the trade-off between higher costs and better data, faster trade times, and more ingested research is something you need to decide for yourself.
The first piece of information you need is the cost structure. Crypto trading with exchanges or brokers such as Coinbase, Gemini, or elsewhere will cost you money, it is up to you to understand exactly how much you are likely to pay each week, month, or year.
Consider the add-ins that Coinbase and others provide
Coinbase is famous for its additional learning space, but it’s not the only cryptocurrency platform that offers onsite research and data streams that can help you make good trading decisions. As a beginner, you want to include as much information as possible in every move you make. This means that a crypto exchange that provides additional learning resources is a great ally for you and your portfolio.
Experienced investors also rely on data and analytics, of course, but the instincts that come from years of experience in this field can help mitigate some of the pain points that novice investors are sure to encounter.
Consider these action points when approaching a new cryptocurrency space. With these in mind, selecting the perfect arena for trading Bitcoin, Ethereum and others can be made easy.