Cryptocurrency is relatively a newer investment vehicle. However, it has experienced exponential growth much early in its lifetime, a growth that is still ongoing. It is evolving and expanding at a scintillating pace with the market changing in the blink of an eye.
You must have heard experts asking you to compare not just currencies but also exchanges before opting for their services. You can easily find platforms that allow you to accomplish that, for instance, you can compare CoinSpot vs Binance with Coin Culture.
Many would argue the need for comparison, especially when you are choosing a reputed exchange. Let us understand simply.
Every week new players are entering the game with technology contributing with its innovations. By now, countless coins and tokens have been introduced and numerous exchanges have stepped in to facilitate trading.
Each exchange has a different service to offer and support a set number of currencies. Also, the investment needs of every trader are unique. Now what suits your specific requirement the best can only be ascertained by comparing multiple exchanges and their facilities. Here are some pointers that you must consider while comparing two exchanges.
- The highest priority is the security
When considering investments and finances, security is undoubtedly the highest priority. Knowing that your investments are safe is the most crucial aspect when choosing an exchange. Make sure you assess the security feature at both storage and transactional levels. An exchange that has a dedicated team of cyber experts is a better option.
- Check and compare their fees
This is a heterogeneous factor with different exchanges having different pricing models. Some exchanges charge on a percentage basis while others may ask you to pay a trading fee upfront.
Many exchanges also have some paid features other than their regular ones. Ascertain the services and facilities you would need and compare the overall cost that these exchanges would charge for that.
- Make sure the interface is intuitive
Exchanges not only allow you to trade cryptocurrencies but also provide several other functionalities. You can check and compare currencies, study a particular coin in detail, keep your crypto saved, withdraw, and more.
With all those functionalities compare how easy it is to use the platform of exchange. Check their mobile applications as nothing is more convenient than having your investments in your hand. Check for the application compatibility, frequency of update, and intuitiveness of the interface.
- Check reviews for customer support
Customer support is crucial, especially when you are diving into a completely new sphere. Evaluate how well the exchange team helps you resolve your issues if they have to occur. Read reviews to know their response time and quality of responses to the customers’ questions.
- Coins they support
Every exchange has a list of coins it supports. Although most often the list has hundreds of currencies, it is better to compare it before making your call. Whether you are a fan of a specific niche or enthusiastic about all mainstream coins, knowing the supported currencies can define your investments and their future course of action.
- Modes of payment and withdrawal permitted
Different exchanges allow different modes of payment and withdrawal. Some only accept crypto while others can also allow bank wired transactions. Many exchanges permit a wide range of payment and withdrawal modes including visa and MasterCard.
You can even withdraw your money in the form of gift cards. Such flexibility can make things much easier which makes this comparison crucial.