Seven Things to Consider When Choosing a Canadian Crypto Exchange
If you are interested in buying or trading cryptocurrency, you first have to start by choosing a crypto exchange. This isn’t exactly an easy task since there are so many options out there. However, there are a few things to consider when choosing the right Canada crypto exchange for you.
For one, you’ll want to consider things such as how easily you can buy and sell coins, how profitable your trades are, and even how much trading fees are. If you are still confused, keep reading to learn about the seven things that you should consider when choosing the right Canadian crypto exchange.
- Security
As with anything you do on the Internet, know there’s always a risk that you could fall victim to a security breach or a scam. That’s why it’s important that when choosing an exchange, you consider safety. In order to secure your account and assets, a cryptocurrency exchange should offer two-factor authentication (2FA) at the very least. If not, chances are this particular exchange isn’t too concerned about their security, which is never a good sign.
- Exchange Fees
When it comes to the best Canadian crypto exchanges, you can expect to be hit with a few fees. These fees vary between different exchanges and typically depend on the size of the transaction. For example, a high transaction may warrant a higher fee from the exchange. If you’ve never navigated through the world of cryptocurrency, it’s important to pay attention to these fees. Otherwise, you may end up getting the shock of your life when you end up with less money than you thought you would.
- Reputation
An exchange’s reputation is by far one of the most important things to consider. After all, you don’t want to end up using an exchange that is infamous in the cryptocurrency community. Although many cryptocurrency exchanges out there are certainly reliable, this isn’t to say that they all are. Some of the things that could make a cryptocurrency exchange have a bad reputation include having insufficient security as well as an association with scams.
Luckily for you, you can easily avoid an exchange with a bad reputation simply by doing a little bit of research. It is safe to say that if an exchange is to be avoided, you’ll find out about it sooner or later.
- Customer Service
If something has happened to your funds, you probably want someone there to resolve the issue as quickly as possible. That’s why customer service should be an important factor to consider when searching for a crypto exchange. It’s true that many cryptocurrency exchanges are lacking in customer service, but some are certainly better than others when it comes to communicating with their clients.
Whether you have been locked out of your account, had your funds compromised, or are facing any other kind of issue, a cryptocurrency exchange with a responsive customer service team is one worth working with.
- Coin Selection
Another thing that you may want to consider is the type of cryptocurrency that is offered. The type of coin you can get varies from exchange to exchange, so if you have a specific cryptocurrency in mind that you want to buy, make sure that the exchange you are planning to use offers it.
Although most major forms of cryptocurrency will probably be offered at nearly every exchange, minor coins may be harder to find. Therefore, if you are planning to invest in smaller cryptocurrencies, it’s wise to choose an exchange that offers them.
- Liquidity
Liquidity, as well as trading volume, are two vital factors to consider when choosing a cryptocurrency exchange. An exchange that has a high trading value is a good sign. If you are planning on trading using better-known forms of cryptocurrency, a centralized exchange is probably best for you.
On the other hand, if you plan on trading some of the lesser-known forms of cryptocurrency, you are better off going with a smaller exchange. The good news is that you can easily check an exchange’s trading volume and liquidity using a website specifically made for this.
- Availability
Whether or not you can use an exchange in your particular region is something that you may not have considered before. However, this could significantly affect which exchange you choose. There are certain cryptocurrency exchanges that are present in some countries while not available in others. Oftentimes this is the result of feasibility or the fact that the current government is not in favour of allowing the use of cryptocurrency in that particular country.
It’s important to familiarize yourself with this information prior to making your decision in order to narrow down exchanges and make things that much easier on you.
