How to choose top crypto exchanges?
2022-08-04
Top crypto exchanges and crypto wallets
If you’re planning on purchasing cryptocurrency and informing about to choose top crypto exchanges, you most likely have already heard about a “crypto wallet”. So, what exactly is a crypto wallet, what does it do and how does it help you?
A crypto wallet
is a safe place to store both your public and private keys that give you access to your currency. Therefore there are two types of wallets that you can use to store your crypto.
Hardware Wallet:
To anyone concerned about online security, hardware wallets would be your safest bet. They are physical devices that resemble USBs and function completely offline. Hence, this is considered the most reliable source of storage since it cannot be compromised online.
Software Wallet:
These types of wallets are fully digital. They provide the convenience of not having the risk of misplacing a physical object like the hardware wallet. Of course, this opens the door to potential exploitation, considering that it is entirely online. Certain top cryptocurrency exchanges allow you to store your crypto wallet with them. Now, it’s no different than trusting a bank with your money. With that being said, if you operate with the right exchange it results as completely safe and secure as investing with a bank account.
Now that we’ve established what a crypto wallet is, let’s take a deep dive into the top crypto exchanges!
Top Global Crypto Exchanges
Using a top-rated crypto exchange has a multitude of advantages:
- Accessibility: Exchanges offer the convenience of buying and selling cryptocurrencies through a dedicated website or a mobile app, meaning you can complete transactions anywhere and anytime.
- Variety: The best exchanges offer a wide range of digital currencies and tokens, not limiting you to specific coins. Diversifying your portfolio is an important tactic in increasing your success rate with cryptocurrency trading.
- Security: Typically, leading crypto exchanges store the user’s funds in “cold storage” or on a hardware wallet, to maximize security and prevent any online hacking.
- Taxation: Additionally, by dealing with an asset, as opposed to a currency, you can potentially save a lot of money thanks to lax taxation laws on trading. You only declare your earnings while converting BTC to currency, not while trading.
- Speed: Exchanges offer you a secure way to move your funds across the world without paying ridiculous commission fees, almost instantaneously.
- Reputation : The best global crypto exchanges are KYC/AML compliant. The higher ranked your exchange is, the less likely you are to interact with a fraudulent company.
Some drawbacks you may have when opening your Crypto trading account
Moreover, opening an account on a cryptocurrency exchange sometimes can be stressful for some people and it is mainly caused for 2 main reasons:
1. Long Verification process:
Mostly it takes a little patience (a few hours) to complete an
ID verification process.
The most common information that asked for this process are: Full legal name, Date of birth, Email, Phone number, complete address, utilities bill sent to that address, passport or any ID registration document, a selfie of you holding that government ID, among others. Nonetheless, sometimes people can get frustrated and don’t continue the verification process when some of the “safety steps” have not been completed correctly or when you have been asked to corroborate your identity with “extra” safety steps. Then it can take longer than expected. Thus, this is a common query for many users. If this happened to you, you aren’t the only one.
2. Problem when transferring funds from banks to exchanges
Moreover, it is well-known that most banks aren’t too glad to work with exchanges, so it is imprescindible to stand your ground when it comes to funds transferred from your bank to any crypto exchange as the bank will try to dissuade you from it. Keep in mind that a bank can’t earn anything without liquidity and by moving funds to a different institution, you are impacting the bank’s cash flow. Naturally, banks will try to protect their interests, sometimes disguising it as safety measures or fraud prevention, and will try to scare you off from your initial intent, securing their hold on your funds.
Most crypto exchanges are considered legitimate and safe to use, often regulated by various regulatory bodies. With that being said, do your research and ask experts to ensure you are using the right solution
In the end, our best pieces of advice:
Be patient!
Comparing Top Cryptocurrency Exchanges
In order to choose top crypto exchanges, there are certain criteria to assess. The most crucial aspects of an exchange are:
- Firstly, Supported Assets: A wide variety of supported assets increases an exchange’s ranking. If all they support is Bitcoin, they’re not going to be very popular.
- Payment methods: No one likes to feel constrained by a specific payment method. If an exchange offers multiple ways of buying and selling crypto, they’ll earn a bigger user base while satisfying a more international clientele.
- Fees : Transaction fees, signup fees, withdrawal fees, you name it. There are all sorts of fees out there, and a fair assessment of the price and recurrence of fees on an exchange is crucial.
- Security: This one is self-explanatory. What’s the point of buying and selling crypto if your account can be compromised? The most popular exchanges are also the safest!
- Customer service: When dealing with people’s money, it’s imperative that an exchange provides helpful customer service to deal with all sorts of potential issues that may arise.
- Finally is the Reputation: Does the exchange have many positive reviews? Is it blacklisted on some websites? It’s important to do the proper research on the top biggest crypto exchanges before signing up we can be sure to choose the top crypto exchanges.
Comparative Reviews to choose top crypto exchanges
Binance
- Extremely low fees on transactions
- Huge coin selection
- Simple sign-up process
Coinbase
- Features sign-up bonus codes
- Easy to navigate UI
- Top notch customer support
Gemini
- Fantastic reputation
- Open to users in the USA
- Promotes cryptocurrency to regulatory bodies across the world
Kraken
- Accepts many different payment methods
- Accessible to hundreds of countries
- Sophisticated trading platform
Bitstamp
- Regulated by both the USA and the EU
- Mobile app available on both iOS and Android
- One of the pioneering Bitcoin exchanges
Coinspot
- Impressive variety of cryptocurrencies
- Catered to the Australian public, having been regulated by the Australian governmental bodies
- Reputable status
Finally, as you can see, each exchange has their own specific nuanced advantages
To sum up, choose top crypto exchanges may seem like a daunting task at first, but it doesn’t have to be! Consequently, much like most things, it’s a learning curve, but with the right tips, you’ll be on your way to crypto success in little to no time. In
SolidusX
we will give you guidelines to adhere to, and of properly storing your crypto wallet and choosing the exchange that suits your needs.
Stay safe, and happy Trading!
