Factors to Consider When Choosing a Crypto Exchange

In June 2018, Forbes reported that while there were over 1,600 cryptocurrencies in circulation, over 200 crypto exchanges had mushroomed all over the world. Six months on, the number only increased. Despite still being in its nascent stages, this digital asset category has undoubtedly captured the imagination of contributors worldwide.

Our experts already shared the list of the top 5 crypto exchanges based on their security and liquidity rates.

The new problem is that not all exchanges are made equal, whether it is the platform they offer for trading, their security protocols or the number of currencies they list. So, how do you know which exchange to choose? Here’s a look at some key aspects to consider when selecting a crypto exchange.

Authenticity and Security

It is crucial to do your research and assure yourself that you are choosing a safe and legitimate exchange. Exchanges play an essential role in preventing pump and dump scams. The recent hacking of Coincheck makes it even more important to analyse the security protocols of an exchange.

Are Regulatory Threats an Issue?

With regulatory bodies working on putting regulatory frameworks in place for cryptocurrencies, it becomes important to verify that the regulatory authorities have not blacklisted the exchange. A well-regulated and compliant exchange will be able to weather regulatory changes and provide greater security to your assets. For instance, the IronX Exchange has obtained licensing from the Estonian Financial Intelligence Unit in September 2018, becoming a fully regulated crypto exchange.

Method of Purchase

The process of purchasing cryptocurrencies differs depending on the exchange. Some use PayPal, bank transfers, and credit or debit cards, while others accept cryptocurrency payments. It is essential to choose a crypto exchange that offers both fiat and cryptocurrency wallet funding options to start trading, especially for beginners.

Supported Tokens

Most crypto exchanges support Bitcoin and Ethereum. But, this is just the tip of the iceberg in the world of cryptocurrencies. Make sure that the exchange you choose supports multiple digital currencies, giving you ample choices for contribution and trade.

Fee Structure

Fee structure and transaction commissions vary across exchanges, making it a crucial aspect to check when choosing an exchange. The crypto exchange should be transparent about all fees, with no hidden costs that might take you by surprise. Some exchanges also offer incentives on trading certain tokens.

To simplify crypto trading and make the market equally accessible for novices and veterans alike, IronFX Group, an award-winning global online trading platform, has partnered with EmurgoHK Group, the creators of Cardano, to create the IronX Exchange. The future exchange is already regulated by the Estonian Financial Intelligence Unit and it is also working on achieving both Gibraltar and Malta licenses.

IronX will provide a full range of traditional fiat and crypto wallet funding options and 24/7 support in over 30 languages. The main idea behind this exchange is to provide the flexibility and already established convenience of the traditional platform and combine it with the latest developments in the blockchain.

IronX Exchange will allow both fiat and crypto wallet funding options and the IRX Smart Contracts are already security audited by the leaders in blockchain security Hosho and Hacken. IronX will offer plenty of benefits to its native IRX token, make sure to keep up with all the latest updates about them by reading the IRX token holders guide.