How To Choose A Cryptocurrency Exchange

By Adrian Cruce

Choosing a cryptocurrency exchange is all about analyzing various important factors. They are presented below. Remember that the best cryptocurrency exchange for a person is not necessarily the best one for you. It is important that you conduct your own research and you choose what is best for you.

Basic Considerations

  • Currency support – you want the desired cryptocurrencies to be available.
  • Trading pairs – when trading one cryptocurrency for another, the exchange should offer a direct transaction opportunity.
  • Advanced functionality – this is subjective and relates to what you may need to see present in the exchange.


No matter what you might think, this is by far the most important factor to consider. In the event the exchange is not fully secured, funds can be stolen. All the other advantages you identify turn into negative value. Making sure your coins are safe should be your number one priority. Always think about:

Technology used:

  • Having HTTPS protocol in place.
  • 2 factor login authentication.
  • Exchange activity should be monitored by auditing programs.
  • SMS or email alerts.
  • All customer deposits need to be stored offline.


  • Are exchange owners revealed?
  • Are team members presented?
  • Cold storage address is published by truly transparent cryptocurrency exchanges in order to allow people to check reserves.

Legal Aspects:

  • The best thing you can do is use a cryptocurrency exchange that is based in your country. This makes it really easy to have regulatory changes compliance in place. However, if you believe security is higher in another country or other aspects are more important, using services in another country is an option. Just be sure everything is completely legal.

As an extra security recommendation, be sure to only have funds you intend to exchange stored in the cryptocurrency exchange. Everything else should be kept in wallets that you actually control, preferably hardware wallets.


You have to compare all the fees charged by the exchange. In most cases this is under 1 percent and charged on a per transaction basis. Lower fees should be present when trading volume is larger.


The cryptocurrency exchange has higher liquidity when it has a higher trading volume. If volume is high, it is easier to complete the transactions faster, without being impacted by major market price changes. Try to choose a cryptocurrency exchange that offers you a “locked in” price. This guarantees the transaction will take place at a specific rate even if network delays appear.

As an extra tip, check individual liquidity of all pairs you want to trade. For instance, you can have really high liquidity when trading BTC/USD but liquidity can be really low for BTC/EUR.

User Experience

This will vary based on personal preference and needs. However, what you should look at is:

  • Anonymity – some people prefer exchanges that do not require much personal information while for others this is not a concern.
  • User interface – consider this based on the device used. Sometimes user interface is great on desktop PCs but really bad on mobile devices.
  • Community – always consider what actual users say about the experience they had with the considered cryptocurrency exchange.

Final Considerations

Research helps you to choose the very best cryptocurrency exchange for you. It is your responsibility to learn as much as possible about every single aspect mentioned above. Besides this, remember that prices can wildly differ from one exchange to the next. The best sell/buy prices often change. Just because the rate was based on an exchange last month does not mean it is the best right now.

If you use Google, you will find countless cryptocurrency exchanges. Making a list of the very best ones is close to impossible, although this is what you will surely find everywhere. You need to take recommendations into account, then check the aspects above and after make your choice based on what is important for you. No matter what you choose, make sure security is top notch.