Crypto Investing
18 Nov 2021

How to Choose The Best Cryptocurrency Exchange?

Deepan Datta

Hey, congrats. If you are here, you have shown the courage to think of investing in the newest asset class of the world, which is considered the best alternative to the fiat-based economy. 

Now, moving forward, choosing a cryptocurrency exchange will be your first crucial decision in your journey towards successful crypto investing. 

As a beginner, you may have questions like how to choose a crypto exchange? Or, what cryptocurrency exchange should I use? etc. But, if you know the things to look for in a cryptocurrency exchange, your job may become much easier.

Hence, we have listed six criteria for choosing cryptocurrency exchanges for both investing and trading purposes. It may look a lot initially, but if you use these factors while choosing a crypto exchange, your experience will be great. 

6 Tips for Choosing a Crypto exchange

how to choose cryptocurrency exchange

Safety and Reputation

Not just in India but anywhere in the world, whenever you choose a cryptocurrency exchange, your first criteria should be to look for the safety and reputation of the exchange.

Whether the exchange has all the safety checks in place to keep your funds secured and can thwart any attempt to hack the system. You should ensure, the exchange keeps the major portion of the user’s funds in a cold storage wallet.

While analysing the security aspect, check the past track records and user reviews of the exchange on the internet. 

For example, CoinSwitch Kuber is ISO 27001 compliant and SOC2 Type II certified. It also has 4.1 ratings on google play making it a secure and trusted crypto exchange. 

Coin Support

Did you know? There are over 11,000 cryptocurrencies circulating in the crypto market. 

It is not just the big players like Bitcoin, Ethereum etc, and many small coins offer huge growth potential.

For example, Dogecoin, the trader’s favourite coin, now trades at $0.32 (₹24) and has grown from $0.006 (₹0.45) in a year’s time frame, a growth of over 5,000%. 

Therefore, while choosing a cryptocurrency exchange, check the coins listed on the platform and the rate of listing of new coins in the exchange platform. 

The other point you need to consider is whether the exchange supports INR deposit and withdrawal to your bank account. 

Liquidity

Liquidity means how fast you can buy and sell your crypto assets without impacting the asset’s price on the exchange. You can gauge the liquidity of any exchange by analysing the trading volume. The higher the trading volume, the better will be your trading experience with the exchange. 

Note: the liquidity varies for different trading pairs. For example, you will see high liquidity in counters like BTC/INR, ETH/INR, XRP/INR because they are the leading cryptocurrencies in the market, but it will be lower for smaller ones. Thus, make sure to choose an exchange with high liquidity.

How CoinSwitch Kuber Makes a Difference Here? 

CoinSwitch Kuber is a global aggregator of crypto exchanges, meaning, it pools liquidity from leading Indian and global exchanges to enable users to trade and invest in cryptocurrencies at the best rates. Therefore, while trading on CoinSwitch Kuber, you don’t need to worry about the liquidity of any trading pair and your trade orders are filled instantaneously. 

Fees Structure 

We know how much it hurts to see when your trading profits and hard-earned money decline due to high brokerage and commission charges. Certainly, you don’t want to experience such a situation. 

Therefore, while choosing a crypto exchange, ensure you select the exchange that has the lowest fees structure for all buy and sell orders and on deposit and withdrawal. You should know, protecting your profits is also one of the key skills in trading. 

For example, CoinSwitch Kuber has a zero fees structure on all buy and sell orders and deposit and withdrawal, which makes it a go-to exchange for beginners. 

User Interface and Experience

How do you feel about a gaming app that responds slowly to your input and has a poor UI? Not good, right? The same thing goes with crypto exchanges, where ease of use and speed of execution are critical.

Therefore, the exchange you are selecting should offer an intuitive and less complex interface, speed, and good user experience. Another important factor to look at is whether the exchange has a responsive customer support system, where your issues can be addressed in a short time. 

Team

How comfortable will you be to open an account with a crypto exchange, which doesn’t provide information about its leadership team, nor is it transparent with its operations? I guess, no one is comfortable with such exchange platforms. 

An organisation is known by its people and culture. Therefore, while choosing a cryptocurrency exchange, check the background of the founding members and people in the leadership roles. 

Also, you can check the partnerships and investors profiles that will give you confidence in selecting the right crypto exchange.

Wrapping Up

If you know the tips for choosing a crypto exchange, selecting the best exchange for cryptocurrency investing and trading becomes very easy. 

You should note, cryptos are an unregulated asset class; therefore, while selecting a crypto exchange, always prioritize the security and reputation of the exchange before considering other factors.

Common FAQs on Crypto Exchanges

Which cryptocurrency exchange should I use?

The choice of cryptocurrency exchange completely depends on your investing and trading requirements. However, when selecting a crypto exchange, always consider the exchange that has a good reputation in the market, strong security features in place to provide a secure trading environment, supports multiple coins, intuitive user interface and good customer support, liquidity to process trade orders instantly, and offers easy INR deposit and withdrawal option.  

Which cryptocurrency exchange has the most coins?

Globally, Binance, HitBTC, Huobi Global have the most number of coins listed on their exchange platform. In India, CoinSwitch Kuber leads the chart with the most number of coins listed on the platform.

Which cryptocurrency exchange has the lowest fees?

In India, CoinSwitch Kuber enables you to trade in cryptocurrencies at the best market rates with zero fees. 

Which is the best cryptocurrency exchange in India?

The cryptocurrency exchange that meets all the criteria discussed above in the guide article is the best cryptocurrency exchange in India. 

Which cryptocurrency exchange accepts PayPal?

Many global exchanges like eToro, XTrade, and Coinbase accept PayPal, but the facility is unavailable to all users. Currently, no Indian exchange accepts PayPal as a payment method. 

How does cryptocurrency exchange work?

Cryptocurrency exchanges work as an intermediary between the buyer and seller and are responsible for matching buy and sell trade orders on the exchange. In exchange for the services provided, cryptocurrency exchanges charge brokerage fees or transaction fees on all completed transactions. 

Download the app right away and get your crypto journey started immediately.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Deepan Datta

Content Writer

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