5 important things a newbie should look for in a crypto exchange platform

As a crypto trader, choosing a crypto exchange platform is one of the first and most important decisions one will make and like in any other investment, making decisions needs one to be cautious and well-informed.
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Editor's Note: The statements in this article do not constitute financial advice. Any and all trading involving the digital asset is subject to the user’s risk and discretion and must be done after adequate and in-depth research and analysis.

MANILA, Philippines — Gone are the days when traders were only able to acquire cryptocurrencies through mining or exchanges via online and offline forums. Today, crypto trading has become more accessible and attractive to both early crypto adopters and newbie traders who are building their wealth portfolios.

Tech innovations like Crypto Exchanges are instrumental in this. As platforms that facilitate buying, selling and exchanging digital currencies, they make trading and investing in digital assets convenient and pretty straightforward by putting different features and perks available in just a few clicks.

As a crypto trader, choosing a crypto exchange platform is one of the first and most important decisions one will make and like in any other investment, making decisions needs one to be cautious and well-informed.

To help potential crypto users like you make the ideal first step into trading, we’ve compiled some of the most important factors any crypto enthusiast should consider before choosing an exchange.

1. Security

The first and most important factor you should consider when choosing a crypto exchange is security. In crypto trading, platform security is paramount as your finances completely depend on it. 

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What are the signs to look for?

  • Good crypto exchanges use strong encryption and employ the best security practices like two-factor authentication, which adds a layer of security to traders’ accounts. This spells the difference between having a secure wallet or potentially being hacked.
     
  • A good reputation when it comes to keeping servers secure from internal and external threats. The platform should be designed in a way that removes the risk of transactions and puts security protocols in place to protect digital assets of users.
     
  • It’s also important to look into how an exchange complies with and follows necessary government policies and guidelines designed to protect any crypto trader.

    For example, a platform like the Philippine Digital Asset Exchange (PDAX) is a licensed and supervised exchange by the Bangko Sentral ng Pilipinas (BSP). This means that it is more transparent and accountable to regulators. It also gives users the assurance that they have somewhere to go to for questions and concerns.

2. Cryptocurrencies offered

The number of currencies you can trade varies among crypto exchanges as some platforms offer more tradeable coins than others. A trader then must first know what coins they’re interested in trading and then check if these coins are coins are offered in the crypto exchange platform they’re considering. 

Expert traders suggest that an average exchange should offer at least eight to 10 coins. Exchanges that offer more cryptocurrencies can help an investor diversify his portfolio and mitigate risk if one’s crypto value drops. 

In the Philippines, PDAX has one of the widest ranges of cryptocurrencies to trade—with 34 cryptocurrencies currently offered. Moreover, majority are considered the Top 200 cryptos in terms of market capitalization, including BTC, ETH and XRP, among others.

For newbies wanting to get an idea of the best coins to trade, there are available free-to-access resources that list the top crypto prices and charts by market capitalization that can help them get started. 

3. Fees

Of course, every crypto trader wants to keep as many profits as possible. However, crypto exchanges do not exist for free and they all charge users a percentage every time they deposit, trade or make a withdrawal.

When choosing a crypto exchange, you will need to compare the fees that different platforms charge and as much as possible choose the one that charges the least to ensure that fees won’t eat into your profits.

What are these fees you should look into? This includes trading fees, deposit fees like cash in charges, withdrawal fees and balance transfer charges.

Traders in the Philippines can opt for exchanges like PDAX that offers very minimal fees when they cash in and cash out of their e-wallets through partner banks, digital wallets and financial institutions. 

4. Liquidity

Before diving into the world of crypto, you should already know how volatile these currencies are and how their prices move very instantly. That said, in choosing a crypto exchange, you should consider one that has good liquidity.

Simply put, liquidity determines how easy it will be for you to turn cash into crypto, or vice versa, without compromising its value. A liquid exchange can also simplify the process to buy and sell cryptocurrencies, making it easier to enter or exit a trade in a fast-paced digital currency market. 

To get an idea of how liquid an exchange is, experts advise traders to look at an exchange’s trading volume. The higher it is, the more liquid an exchange is and is ideal for trading.

Additionally, crypto platforms’ partnerships can also help ensure one exchange's liquidity. Such is the case for PDAX which has top global partners such as banks, investment firms and blockchain software firms that all help in reducing frictions and keeping a deep and liquid market to convert crypto into Philippine pesos.

5. Ease of use, customer experience

Of course, your user experience should be taken into consideration when choosing a crypto exchange platform.

Crypto trading can get complicated and overwhelming, especially for newbies, but a good and reliable crypto exchange can lessen that through its platform’s ease of use.

Here are some of the things that you should be getting from a good crypto exchange platform:

  • Lag-free experience. Given how fast-paced the world of crypto is, a smooth and swift experience as a trader is a must for every trader, even if you’re on mobile or desktop.
     
  • A comfortable interface. Trading can take hours making it necessary to have a clear and simple platform interface.
     
  • Reliable customer support. An ideal crypto exchange should have a dedicated team that users can ask for assistance and guidance on their crypto concerns. 
     
  • Learning. A crypto exchange should help traders stay ahead of the curve by sharing how-to guides, overviews, training and insights on the crypto market.

As a trader, you should consider your cryptocurrency exchange an investment partner and it should treat you the same way by giving you a smooth and hassle-free experience as a client.

Locally, Filipino crypto traders—newbies and pros—can choose PDAX as their platform of choice 

Apart from its security features, BSP regulation and reasonable fees, PDAX accompanies investors in their crypto experience by providing them with solid customer support and up-to-date crypto learning materials. 

Lastly, you can follow easy trading steps through PDAX’s mobile app and web exchange which are both convenient to use. 

 

Visit www.pdax.ph or download the app via Apple Store, Huawei Gallery and Google Play store.

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