Markets
Best Crypto Exchanges and Apps of May 2024 – Forbes Advisor
Beyond fees, when choosing the best crypto exchange for your needs, consider things like:
- Security
- Trading volumes
- Educational resources
- If the exchange lists the cryptocurrencies you want to buy
Security
As crypto has become increasingly popular and valuable, it has become a significant target for hackers. Leading exchanges like Binance and KuCoin have been hacked, resulting in losses of tens of millions of dollars. Even though exchanges often reimburse those whose coins are stolen, no one wants to find themselves in this position in the first place.
You can minimize your risks by spreading your crypto purchases across multiple exchanges. You can also get into the habit of moving your crypto holdings from an exchange’s default wallet to your own secure “cold” wallet. These are storage options that aren’t connected to the internet, making them almost impossible to hack, although you’ll need to record your password carefully or you could lose access to your crypto forever.
Parts available
Carefully consider the cryptocurrencies available on a given exchange. You could perfectly well use a crypto exchange that only trades a few coins. Conversely, if you are a crypto enthusiast, you may want to access the 600+ available on Gate.io.
Trading volume
The availability of parts alone is not sufficient if there are no exchanges. Ideally, you will want to verify that there is sufficient trading volume in your target coins to guarantee liquidityso you can easily exchange your coins and dollars.
Low-volume markets could cost you in sales. If there isn’t much volume and you place an order, it’s called slippage. You might end up buying at a higher price or selling at a lower price than you would like.
If you are an advanced cryptocurrency trader, you may want to make sure your preferred exchange offers the trading types (like limit orders, which can prevent slippage by setting a firm price) and margin that you want. . Keep in mind that the types of exchanges involving these are still evolving in the United States, so offerings from different exchanges may vary over time.
Educational resources
If you’re new to cryptocurrencies, look for an easy-to-use platform with plenty of educational resources to help you understand this complex and rapidly developing market.
Accessibility
Finally, don’t assume that an exchange is available in your country, or even your state, just because you can access its website. Many state and federal governments are still considering how exactly they want to treat cryptocurrencies from a legal and tax perspective.
The quest for the ideal crypto exchange is a nuanced journey, requiring investors to balance security, compliance, liquidity, usability, cost, and diversity. The right exchange not only aligns with an investor’s goals and values, but also serves as a trusted partner in navigating crypto’s dynamic frontier.
– Mikkel Morch, founder of ARK36