Why Does it Matter to Choose the Best Exchanges?
The first step to profiting big is choosing reliable exchanges to trade with. They are your gate to the crypto world. Three main factors differentiating between a useful exchange and a useless exchange are liquidity, security, and fees.
- Liquidity defines the ease at which an asset can be bought or sold. If there is a lot of liquidity, then there will always be a buyer or seller waiting on the other side of your order request.
- The second factor is security. When your money is on an exchange, you are trusting them to hold your funds, so you better hope that their security is up to par. Exchanges are constantly under attack. A recent example is Cryptopia who had hackers siphon millions from the exchange. Although these funds have now been reimbursed, imagine waking up one morning to all of your funds being stolen from the exchange. Not good!
- The third factor is fees. Top traders in the industry are aware of fees, including them in their profits. Because of this, I will recommend exchanges that aren’t only liquid and secure, but also cheap.