There are many centralized and decentralized exchanges where you can trade bitcoin, altcoins or even stake your coins for rewards. But for safety purposes, there are many things you need to consider before signing up with any cryptocurrency exchange. Many scams have happened in the cryptosphere where some exchanges shut down with peoples funds. That is why you need to carefully choose an exchange app to use for crypto trading. You will also learn what to look for when choosing a reliable crypto exchange platform out there. I will also reveal some of the trusted and secured centralized and decentralized exchanges that you can use for trading. Lastly, you will see the best tool for cryptocurrencies and exchange research.
Things to Consider When Choosing an Exchange Platform for Bitcoin Trading
What are the things I need to check when choosing an exchange? This is the first question you should ask, especially if you are new to crypto trading. Make sure the exchange app has all you need to successfully and securely trade. Check out these tips.
Supported Trading Pairs
Make sure the exchange you choose supports all the trading pairs you need. For example, you will need an exchange app that supports fiat-to-crypto pairs if you wish to trade cryptocurrencies against USD.
To trade between cryptocurrencies, you need an exchange that supports crypto-cross pairs like ETH/BTC, XRP/ETH, etc. Seasoned traders might look out for exchanges that support leverage, margin trading, etc.
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Is the Exchange Insured?
You need to consider this also, although only few exchanges are covered by insurance. Trading on an insured exchange ensures that you don’t lose your funds if the exchange is hacked.
For instance, in September 2020, Kucoin was hacked and they lost about $150 million BTC. But Kucoin assured the affected users that they will repay their stolen coins with their insurance funds. Most exchanges that disappeared with their users funds was due to loss of funds to hackers.
Make sure that the exchange app has never been a scam in the past. Some exchange apps were accused with fund theft in the past. So you need to avoid such exchanges because history can repeat itself in the future.
Choose an exchange that is liquid enough to provide high trading volume. Check the 24 hours trading volume of the exchange app.
You also need to consider the liquidity volume the exchange can provide for coins traded on it, especially if you an investor who makes a large trade. If an exchange can provide a high liquidity for a coin you want to trade, then when a whale enters or exits the trade, the price will not rise too much or crash a lot as the case may be.
Make sure the exchange is legally available in your location or country before creating a trading account with them. Some exchanges don’t operate in all locations around the world due to some cryptocurrencies regulations.
Number of Trading Pairs the Exchange Offers
If you mainly want to trade between cryptocurrencies, you will need an exchange that offers a wide range of coins and trading pairs. This most times determines the 24 hours trading volume of the exchange.
Also make sure that the exchange you chose has the coin pairs you want to trade.
Does the Exchange have a Mobile App?
If you are a swing trader or someone that prefers to trade with mobile device, you really need to consider it. Also consider how user-friendly the mobile app is.
Trading Fees and Rates
This is another important point to consider. Some exchanges charge more trading fees than others. For example, many seasoned traders avoid trading on Coinbase because of its higher fees, but it serves as a good entry point for new crypto traders. On the other hand, Kucoin and Binance charge very little trading fees.
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Recommended Secured Centralized Exchanges
Note that all these exchanges I recommend here have mobile apps.
This is one of the popular centralized exchanges, with more than 230 coins and 790 pairs. It has a very high liquidity volume. Very recommended for altcoin traders outside US. US traders can use Binance US, although it has fewer coins. Their trading is very low just 0.1%.
Binance also supports margin trading. The exchange is not heavily regulated like Bittrex. I personally trade on Binance. See the step by step guide on how to use Binance app to trade cryptocurrencies.
This is another popular centralized exchange, with very high liquidity. Their trading fee is also low, ranges from 0% to 0.3%. I recommend Coin base Pro for experienced crypto traders. The exchange has more than 30 coins and more than 90 pairs.
Kraken has more than 40 coins and more than 196 pairs. The liquidity volume is high, but not as high as that of Binance. The exchange also supports staking. Kraken charges trading fee that ranges from 0% to 0.26%.
Kucoin is great for random altcoins. They offer more than 230 coins, with more than 480 pairs. The trading fee is very low, 0.1%. Every user has a trading password. This is a very good security feature because before you trade or withdraw your funds from your Kucoin account, you must input your trading password. Their liquidity volume is high, but not as high as that of Binance and Uniswap. Kucoin now supports margin trading. See the step by step guide on how to use Kucoin app to trade cryptocurrencies.
FTX exchange is one of the best centralized exchanges for trading derivatives and leveraged products. The exchange offers wide range of trading products like spot markets, options, derivatives, leveraged tokens and volatility products. The exchange charges very little fee for deposit and withdrawal of most crypto assets, as low as 0.1%.
This is another secured centralized exchange that has trading pattern as extra security feature. The exchange has more than 190 coins and more than 460 trading pairs.
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This centralized exchange is not as old as the other in my list. But also has a good user interface. Currently, crypto.com charges 0% trading fee and even offer a $50 sign up bonus. You can also earn up to 20% per annum by just staking your crypto.
This is one of the exchanges where crypto projects launch their tokens first. You can easily find low market cap gems that can give you high ROI (Return on Investment). Gate.io has users in over 70 countries and regions worldwide, and is among the 10 best centralized exchanges.
Also, their trading fee is very low, around 0.025% (maker) to 0.075% (taker). Their website and app are user-friendly and also has 24/7 support. But you need to do KYC before you can be able withdraw your funds from the exchange.
This is another exchange for anyone looking for low market cap coins that can give good ROI. MEXC Global obtained key licenses and passing jurisdictions in countries like Australia, Estonia, United States and Canada. However, you need to do KYC before you can withdraw your funds from the exchange.
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Other Recommended Centralized Exchange Platforms
Here are some other exchanges that are worth mentioning:
Recommended Secured Decentralized Exchange Platforms
This is a Decentralized exchange recommended for traders who trade ERC-20 tokens. They have a very high liquidity, with more than 960 coins and 2680 pairs. In fact whenever you talk about the most popular Decentralized exchange protocols, Uniswap is number 1. Uniswap trading fee depends on how congested ethereum is at any given moment. So if ethereum is congested, you will pay more fees.
For best experience with Uniswap, download and setup Trust Wallet app, a multi-chain decentralized ERC-20 wallet and DApp browser. Launch your Trust wallet app. Then go to https://app.uniswap.org/#/swap to start swapping.
I love light weight decentralized exchange because of its low trading fee, 0.3%. The DEx is not as popular as Uniswap, but it is very secured, and also among the top 3 ethereum decentralized exchange protocols. It has more than 20 coins and more than 70 pairs.
For best experience with Tokenlon, download and setup ImToken app, a multi-chain asset management, decentralized exchange and DApp browser. Launch your ImToken app. Then go to the Market tab to start swapping. For large trades, you can use Face-ID, fingerprint or the imKey hardware wallet for extra security.
NOTE: If you are using any other wallet apart from Trust wallet and ImToken to trade on Uniswap and Tokenlon (like metamask), you need to first connect your wallet before you can swap.
Other Recommended Decentralized Exchanges
Best Tool for Cryptocurrency & Exchange Research
There are many online tools you can use for cryptocurrencies and exchange research. But I recommend Coingecko.com because of its user-friendly interface and versatility. I personally use it for find the details of any coin or token I want to trade. You can also use the tool to learn more about DeFi, yield farms, markets, etc.
Another recommended crypto research tool is Coinmarketcap.com, mainly used for checking the market cap of cryptocurrencies, and for fundamental analysis.
Video for Recommended Exchanges and How to Use Coingecko for Crypto Research
If you want know more about some of the exchanges I mentioned in this article and how to use Coingecko discover good exchanges, check out this video below.
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I have mentioned some of the trusted and secured centralized and decentralized crypto exchanges you can use for trading. You also learnt how to discover trusted and secure exchanges with Coingecko tool. Remember that that crypto world is not fully controlled by any single body. So feel free to carry out your own research before signing up with any exchange I mentioned in this article. Learn these helpful strategies for making money from crypto trading. You can also learn how to earn passive income with these play-to-earn games.
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