How to select cryptocurrency trading platform

Beginner Guide to Find the Best Crypto Trading Exchange For Me

This article will teach you how to find the best crypto trading exchange.

You need to consider a few things before selecting your cryptocurrency trading platform. Go through all these attributes and mark what you believe is most important to you. 

After this, please review our reviews and check which platforms fulfill your requirements. If you do this carefully, you’ll save a lot of time. 

However, there’s nothing wrong with changing your trading platform if you find out you weren’t satisfied with your selection.

In this guide, we will tell you what to look after when choosing a Bitcoin trading platform for yourself. But, if you instead prefer a list with trading platform reviews, you should go to our page with the top Bitcoin trading sites.

Guide: 10 steps to determine what is the best Bitcoin trading platform?

Find a Crypto Trading Exchange Site For Me in 10 steps

1. Fiat Deposit Methods and Fees

One of the most important things for a crypto trading platform is that you are able to deposit fiat currencies that you can exchange for cryptocurrency when you want to start trading.

If you already hold cryptocurrencies on another platform this is obviously not important to check.

Check that the deposit method you want to use is available for the trading platform. You can always save a few percent here if you can use bank wire or SEPA instead of credit card deposit

While credit card deposits usually are associated with fees around 2-4%, there are often FREE alternatives with bank wire deposits and SEPA deposits.

However, bank wire takes a few extra days compare to credit card. This is a onetime fee and is not considered as a very important parameter. 

Also, make sure the platform offers your deposit method if you’re limited to a certain deposit method.

Common Fiat Deposit Methods on Crypto Trading Platforms

Most common fiat deposit methods and fees

  • SEPA (Bank transfer in EU) Fee: Free
  • Wire Transfer (SWIFT). International bank transfers. Fee: 0-$35
  • Credit/Debit Card. Worldwide. Fee: 2-4%

2. What countries and regions are allowed to sign up?

In the picture above, you can get an overview of how crypto-friendly countries are around the world. Source

Many crypto trading platforms are regulated and licensed in specific jurisdictions. For example, US customers are not allowed to sign up with ByBit and Binance, while Coinbase and Kraken are US based and regulated in the US. Read more about the best crypto trading exchange for the US.

Also, some crypto trading platforms don’t have an official list of what citizens are allowed to sign up for. Examples are Kucoin and Binance.

At the same time, some crypto trading platforms are particular about what countries they allow.

For example, ByBit states:

Bybit does not offer services or products to Users in a few excluded jurisdictions, including the United States, mainland China, Singapore, Quebec (Canada), North Korea, Cuba, Iran, Crimea, Sevastopol, Sudan, Syria, or any other jurisdictions in which we may determine from time to time to terminate the services at our sole discretion.”

Also, Kraken is particular about what countries are eligible to sign up with the crypto exchange and trading platform.

3. Reputation of a Bitcoin Trading Platform

Reputation and rating would be considered one of the most critical parameters. It’s preferable to see what users like and dislike with the platform. Also, make sure that the rating is relevant to your criteria. 

For example, if the reviewer experienced that the mobile platform was too slim and had too few trading features, it might not apply to you if you ‘won’t use the mobile platform for your trading.

Some examples are:

  • Trustpilot
  • Google Play or Apple Store, see more further down about crypto trading mobile apps.
  • Revain

As you can see, Binance.com don’t have an impressive score on Trustpilot from 3609 reviews. However, none of the crypto trading sites like Bybit or Kucoin has a good score. If you check the reviews, you find out that some are scams and most unhappy customers have problems related to withdrawals and freezer accounts.

4. Bitcoin Trading Platforms - Customer Support

Hopefully, you won’t have to interact with customer support. However, it’s always lovely to have 24h support via telephone, email, and chat if there are any problems. Via chat, they usually solve your issue immediately. 

This iisn’tvery important, but make sure there aaren’tseveral traders that have been waiting several weeks for support, as was the case with Coinbase for some time.

The support can be hard to try before you sign up since it can only be reached when you are signed in. However, if you have any questions that you can find in the FAQ or on a review site like this, you should sign up with an email and try to reach the support before you commit time to do KYC and deposit funds.

The most common alternatives for customer support are bot chat, live chat, and request submission. Email support is not very common anymore.

5. Verification Process and Account Security

The personal verification process and features to secure the account are essential features.

All the large trading platforms will ask for a verification procedure nowadays. Here, you will find different requirements for different daily withdrawal limits. Still, many have a non-KYC verification withdrawal limit.

Verification Process

For the personal verification process, be prepared to show documents such as

  • Phone number
  • Government Issued ID (Passport or Driver license)
  • Proof of Residence (utility bill, credit card statement, lease agreement or mortgage statement)

Account Security

For the personal account security, you have a personal responsibility, but you should also request technical features to help you out

Some features you might want to check are

  • Two-Factor Authentication (2FA) for login
  • Two-Factor Authentication (2FA) for withdrawal
  • Whitelisted IP
  • White-listed withdrawal addresses

6. Crypto Exchange and Trading Fees

Trading fees and spread are significant in the long run. Especially if you’re a high-frequency trader with large amounts of trading capital, this can be the difference between a winning trader and a losing trader.

If you’re a long-term investor with a few monthly trades and a small amount invested, you don’t need to consider this. We have an article about crypto trading fees where we have identified the crypto trading platforms with the lowest fees.

Exchange fees are probably more critical than deposit fees since you will do more exchanges than deposits.

There are also a lot of different trading fees you should be aware of. For example, there are maker and taker fees, spot trading fees, margin trading fees, margin borrowing interest rates, and futures trading fees.

In addition, different fees depending on what your trading volume was in the last 30 days. You can read more about additional fees in our article about Binance fees.

7. Bitcoin Trading Apps

This can be very important if the cryptocurrency trading platform offers its features in a mobile app. You should consider if this needs to be updated and have the availability to trade or at least check the status of your trades from a mobile app.

Also, you need to compare the different mobile trading platforms and their features and functionality. Sometimes the mobile version is stripped. Binance has created two interfaces for the Binance Android and IOS apps. Here, you can easily switch between the Binance Lite and Pro versions.

Binance.com app has over 1 million reviews on Google Play and an average score of 4.5 which is incredibly good!

8. Spreads, Trading Volume and Liquidity

Liquidity is significant since it will reduce the bid/ask spread. This is also very important for high-frequency traders with large amounts of trading capital. You want high trading volume and liquidity since this will reduce the spread and increase your profit. 

However, if you do long-term trading with low frequency, this isn’t very important to consider. Just make sure there’s some liquidity in the market. Otherwise, you probably will pay an unnecessarily high price for your trade.

Where to see crypto trading spreads?

You can check crypto trading spreads per trading pair on Coingecko.

  • Go to Coingecko
  • Search for your cryptocurrency and click on it
  • Click on the markets tab
  • Here, you will find a column with “spread.”

Where to see crypto trading volumes?

You can check crypto trading volumes in different ways. Here are two alternatives

Check the trading volume for a specific trading pair

  • Go to Coingecko
  • Search for your cryptocurrency and click on it
  • Click on the markets tab
  • You will find a column with “24h trading volume.”

Alternative two is to check the trading volume per exchange. 

  • Go to Coingecko
  • Click on the exchanges tab
  • Go to “Spot”
  • Click on the markets tab
  • You will find a column with “24h trading volume.”

Where to see crypto trading liquidity?

You can check crypto trading volumes in different ways. Here are two alternatives

Check the trading volume for a specific trading pair

  • Go to Coingecko
  • Search for your cryptocurrency and click on it
  • Click on the markets tab
  • Here, you will find two columns, “+2% Depth” and “-2% Depth.”

These two columns tell you how much capital is needed to move the price of the specific cryptocurrency by 2%. If the number is large, there is good liquidity. If the number is low, there is insufficient liquidity.

Liquidity can be significant to check if you are about to invest medium or large amounts into a small coin.

9. Regulation, Licenses, Insurance, Custody and AML

Security, anti-money laundering, and know-your-customer will be more common in the cryptocurrency trading. All platforms seem to move towards integrating this into the trading site, and the governments have also increased the demand for this.

Read more about this topic in safe crypto trading platforms.

10. Bitcoin Trading Platform Features

There are many different cryptocurrency trading product features to select among. You must understand what trading features you think is most important. We list some popular crypto trading features here

Summary Guide: How to find the best crypto trading platform?

This article explains the ten most important parameters when selecting your trading platform. It’s impossible to weigh in all parameters for yourself. You need to decide what 3-5 factors are most important among those ten, and then go ahead and find your trading platform. It’s essential to work, so take your time. However, changing platforms and testing several platforms is straightforward before you find the best for your trading demands. 

Facebook
Pinterest
Twitter
LinkedIn