If you are interested in buying or selling cryptocurrencies, you must first create an account with a cryptocurrency exchange. Exchanges are something like stock exchanges, except instead of buying and selling stocks, you buy and sell digital currencies. The best exchanges make this process as user-friendly as possible.
Features To Look for in a User-Friendly Exchange
You are putting your money on the line, so security is one of the primary things to look for in a crypto exchange. Because all exchanges have some level of vulnerability, some users choose to spread their purchases around multiple exchanges or transfer their crypto to a cold wallet to reduce risk.
The second thing to look for is whether the exchange offers all of the currencies you are interested in trading. Some only offer the most mainstream and a few only offer one type. Also, pay attention to trading volume. Exchanges with low trading volume may leave you stuck with coins you can’t unload because there are no buyers.
Advanced users should look for additional features, such as limit orders. Beginners should prioritize ease of use. Finally, check the fees and make sure the exchange is available in the state you live in. State laws governing cryptocurrency vary and some platforms are not available in all states or countries.
Coinbase offers the best customer experience because it makes the process of buying and selling easy and offers strong security. Advanced users have the option of signing up for Coinbase Pro, which comes with more features than Coinbase. Coinbase features a variety of altcoin choices, high liquidity and one of the easiest to use interfaces. Its one downside is that users do not control their wallet keys.
In addition to the exchange, Coinbase users have access to wallets for securely storing investments. The company has insurance to protect users against hacking and data breaches and any cash stored in a Coinbase account is maintained in a Federal Deposit Insurance Corporation insured bank account.
Cash App is another flexible and easy-to-use exchange that is ideal for beginning traders. It includes options to withdraw your currency to other wallets. Features include the ability to withdraw Bitcoin, peer-to-peer money transfers and an excellent user interface. Drawbacks include that only Bitcoin is supported, there are weekly and daily withdrawal limits and you have to pay a fee to send money by credit card. In addition to Bitcoin, users can invest in exchange-traded funds and stocks.
The main benefit of Bisq is that it is decentralized and open-source and there are no Know Your Customer requirements. It offers users over 15 payment options and works with both iOS and Android. Its downsides include slow transaction speed and low trading volume. Users have complete control of their funds on Bisq. It is a non-custodial service, meaning it can not freeze your account for any reason, including suspicious activity.
You don’t have to register to use it and you can instantly access it on any computer or smartphone. This makes Bisq a good choice for users who want privacy or who lack government identification. You can use Bisq to trade fiat currencies, including U.S. dollars, Bitcoin and a few other cryptocurrencies.
The main benefit of this exchange is that it offers over 50 different currencies. It also features lower fees than many other exchanges and more advanced charting. The downsides are that it is intended more for advanced users and may be difficult for newcomers to navigate and some states are not supported. This exchange is one of the best choices for users who want to trade more obscure altcoins.
If you are new to trading cryptocurrency, the user-friendliness of the platform you choose could make or break your experience. Once you get the hang of it, you can branch out to exchanges that cater more to advanced users or even split your investments among a variety of exchanges.