Criteria for Choosing a Reputable Centralized Exchange (CEX).

Criteria for choosing a reputable centralized exchange among hundreds of thousands of exchanges for newcomers to the cryptocurrency market

Criteria For Choosing A Reputable Centralized Exchange (cex)._65d5caec04151.png

Currently there are hundreds, even thousands of different Crypto exchanges. Each exchange has different characteristics and rules of the game, so for traders who are new to the market and do not have much experience, they will encounter many difficulties inchoosing a reputable centralized exchange (CEX).

Finding a good, suitable cryptocurrency exchange is extremely important. As important as equipping yourself with necessary knowledge about the market. Because a good trading floor will help you eliminate unnecessary risks during trading and investing.

If you are still wondering which exchange to choose, follow AZCoiner in this article to get useful TIP when choosing a cryptocurrency exchange.

Criteria for choosing a reputable centralized exchange (CEX)
Criteria for choosing a reputable centralized exchange (CEX) for newbie

Criteria for choosing a reputable centralized exchange (CEX).

Reputation
First, you need to rely on the name and reputation of the exchange to evaluate. An exchange that many users participate in and evaluate well, with a full operating license, is one of the first features to verify safety. In addition, you also need to pay attention to the average trading volume of the exchange, this is a guarantee that this exchange is chosen by many investors. You should only choose exchanges with top volume in the region and the world.

Liquidity
Liquidity is expressed through buying and selling a large volume of cryptocurrency without (or very little) affecting the price of that cryptocurrency. The larger the trading volume, the higher the liquidity of a coin/token pair that that exchange provides, which helps investors make transactions quickly without being affected. price too much.

There are many ways to evaluate the liquidity of exchanges today, but the most popular is still checking the indexes on CoinGecko or CoinMarketCap, Coin360…

Safety and security
Crypto is not inherently backed by any central authority and keeping your Crypto assets on CEXs is not the same as keeping your money in a bank or the like. As the cryptocurrency market grows stronger, CEX becomes a lucrative prey for hackers and therefore if a CEX does not have or has unclear insurance or protection policies for assets, Users holding on the exchange from attacks or errors will also be encouraged not to prioritize the choice.

Whether you plan to hold your assets in the short, medium or long term, the security and safety of the exchange must be a top priority.

Price, transaction fee
The exchange acts as an intermediary, helping investors buy and sell tokens, so to maintain operations, the exchange will need to collect certain fees, such as transaction fees, spread fees, overnight fees, deposit or withdrawal fees. Each exchange will have a different fee schedule, and vary between coins/tokens,…

Specifically, each type of fee is understood in detail as follows:

– Spread and Commission: this cost is the most important and basic expense of each exchange when it can be seen right at the time of entering an order, especially when trading short-term.

– Swap: this is an overnight fee, for long-term investors or overnight orders.

– Deposit and withdrawal fee: this is a fee that some exchanges charge, some do not. In addition, you may have to pay some other fees prescribed by the bank, if any, when transferring money.

– Account maintenance fee: currently, not many exchanges still apply this fee

Choosing an exchange with affordable and reasonable prices and transaction fees will help investors optimize profits.

Type of trading asset
Depending on the asset you want to trade, you can go to CoinGecko or Coinmarketcap to choose a supported exchange.

User experience
User experience has a lot to do with the interface and arrangement of features. To choose a broker with a friendly experience, the best way is to participate in trial trading yourself, or see reviews from the community. Popular exchanges like BinanceCoinbase Exchange, OKX,… often give users a very good experience.

Anti-money laundering (clear KYC required)
The next prerequisite factor when choosing a crypto exchange is the security factor of anti-money laundering and anti-information leakage, thereby protecting user interests.

Currently, most reputable crypto exchanges have many layers of security, corresponding to each upgrade requirement. The higher the security, the more transaction features and account safety are also increased.

Customer support
Newer users may have some questions regarding the basics of cryptocurrencies and how exchanges work. And chances are, you’ll run into problems at some point — which is why it’s good for exchanges to have quick support options.

Sometimes the need for customer support can be urgent because your money may be at stake. Cryptocurrency markets move quickly, and waiting days for a response from customer support can have real financial consequences. That is why investors should consider the reputation of the exchange’s customer support service. Make sure they respond quickly, customers seem generally satisfied, and the exchange puts customer service first.

Conclusion

There are many factors to consider when choosing a cryptocurrency exchange, but according to AZCoiner, for many investors, the factors listed above are: reputation, liquidity, safety, ease of use, etc. use,…will be the top concern. In the end, the decision is up to you, combine the above with your own trading needs to choose the right cryptocurrency exchange.

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