Choose Your Crypto Exchange
In the last chapter we explored the fundamental features of a good quality crypto exchange and answered some questions about our personal needs. The next step is to collect and review your answers to the three getting started questions and your responses to the five fundamental features of a good exchange.
Location, Security, UI, Liquidity, Fees
With this information in hand and the list of popular exchanges below you should be able to choose a crypto exchange. I find it useful to select two or three exchanges that give me different options.
To help you through this process, I will use my situation as an example and follow the above steps to identify my answers.
Ok, here is how I would begin the process of selecting my exchange.
- I mostly buy crypto as a long-term investment and do a little bit of trading. I don’t use it much as a currency, yet.
- I generally like to buy the most popular cryptocoins.
- I do keep track of my trades for tax purposes and to manage my portfolio
- I live in the US where US dollars are the fiat currency. I know there are some countries that won’t let me use their exchange; Binance is one. They announced via email they would stop supporting US customers.
- I definitely want good security. I use a popular exchange, Coinbase, that has a good reputation, so I trust their security. Here is a link that explains their security measures.
- Because I’m extremely busy managing my accounting business, developing courses for Life with Crypto, and spending time with my family, I want an exchange that is very quick and easy to use with a simple user interface (UI). That is why I choose Coinbase. If they don’t support a coin that I want to buy then I have to make time to setup an account and learn a new exchange.
- I like to own ‘blue chip’ cryptocoins such as bitcoin and ether, but I also like to speculate in other blockchain projects. Coinbase carries many of the altcoins that I like, but not all of them, so I have to use other exchanges at times.
- I don’t worry too much about fees because I don’t trade frequently.