Interest in the cryptocurrency space is growing as the markets continue to improve in mid to late 2019. While many keep on looking at the industry from afar, others are becoming involved and looking for ways to purchase Bitcoins. There are a few things you need to do in order to invest in cryptocurrency. You need to ensure you know how much you can afford to invest, get a crypto wallet and finally need to decide which assets do you want to invest in.
Once all of that is taken care of, you need to start looking for an exchange. A cryptocurrency exchange is where you will actually buy, sell and trade your cryptocurrency. There are literally dozens of different cryptocurrency exchange platforms, each with their own intricacies and nuances.
But with so many options, how do certain crypto exchanges become popular and get the bulk of the users? If that is a question you’ve been curious about, you’re in luck. This article is going to look at a few different things that make crypto exchanges popular.
When people invest (in crypto or otherwise) they always want to get as much profit as possible. As a result, if an exchange offers its users low and affordable fees, it is bound to become popular. Trading fees that are high can eat away at a lot of potential profits, which is why low fee exchanges are more popular. In addition to trading fees, you can face fees for withdrawing funds, maker fees, and miner fees. Many people think that higher fees mean a more premium exchange of service, but it isn’t always the case.
High Levels of Security
Another thing that can make or break the popularity of an exchange is its level of security. Cryptocurrency exchanges and assets themselves have had their fair share of issues in the security department. Numerous hacks, data breaches, and other cybercrimes have taken place and cost investors millions. As a result, you want to ensure any exchange you use features the best security measures and has suitable verification requirements. That is why many users prefer to work with exchanges like CEX.IO that use cutting edge technologies and measures to ensure their platforms are secure. If you are unsure about the security of the exchange, you can refer to their website or a third-party review to find some information.
A Great Reputation
Next, exchanges with the best reputation often become the most popular. A cryptocurrency exchange can get a good rep for a number of things including fair fees, absence of security issues or shady behavior, transparency and much more. Checking the reputation of the exchange is often pretty easy. You can use Google search, check out Reddit or another online forum. Checking out commentary and third party reviews of various exchanges can tell you all you need to know about any exchange. If you go with a crypto exchange that has a good reputation and a lot of users, it’s usually a safe bet.
A Fantastic User Experience
While cryptocurrencies themselves can be a little confusing at times, investing in them shouldn’t be. Another thing that can make a crypto exchange very popular is an offer of high-quality user experience. Users want to use an exchange that not only looks good but also functions well. It should be easy to navigate throughout the platform, make trades, withdraw and deposit funds. If users are constantly confused about how to do certain things or deal with a ton of lag or hiccups, the chances of that exchange to be popular are quite low.
Great Customer Support and Support of Multiple Cryptocurrencies
Another mark of a popular cryptocurrency exchange is an offer of high-quality customer service and support. If you have questions or concerns, you not only want them to be answered but answered fast. Many crypto exchanges have subpar customer service, so they respond to inquiries quickly and effectively. It certainly can make the exchange more popular. The last thing crypto investors want to do is wait for their concerns to be dealt with for days. In addition to customer support, popular exchanges often offer support for a wide range of different cryptocurrencies. While most will support the likes of Bitcoin, some altcoins might be hard to find.
A Number of Different Payment Options
In order to use an exchange to purchase or trade coins, you need to fund your account. Every exchange is different when it comes to how you go about funding your account. Some require you to use a credit card, some allow you to connect your bank account or debit card, and some may even let you use PayPal. In addition to different deposit methods, some exchanges will differ in how people eventually withdraw their money. Normally, exchanges that offer a variety of methods for withdrawal and deposits will be more popular as they work for a larger variety of individuals. Also, while many exchanges allow funding via fiat currency, some will only let you purchase crypto with crypto. That is why it’s so important to know how a particular exchange works before agreeing to use it. You don’t want to spend time joining an exchange only to find it doesn’t work with your preferred method of payment.
In conclusion, we sincerely hope that this article has helped you discover and understand what makes a crypto exchange popular. Of course, be sure to perform your own independent research when deciding which exchange to use. What works best for someone might not be the best option for you and vice versa.