The Characteristics of Leading Crypto Exchanges
Crypto exchanges form a vital part of the cryptocurrency ecosystem, making it possible for everyday people and businesses to buy, sell, and trade cryptocurrencies with a few clicks of a button. Indeed, without them, it’s impossible to say exactly where the crypto market would lie, but we’re pretty confident in saying that it wouldn’t be worth the trillions that it’s worth today.
As you might expect, there’s no shortage of crypto exchanges to choose from, with one estimate counting some 250 crypto exchanges in total. And, also as you might expect, not all are created equal. While the decision of which one you use will come to personal preference, you should find that the best ones share the following characteristics.
Regulatory Licensing
Cryptocurrency was, at one point, a largely unregulated market, but that’s begun to change in recent years. The best crypto exchanges hold licenses from regulatory bodies that demonstrate that they follow trustworthy practices, including adhering to anti-money laundering (AML) and Know-Your-Customer (KYC) requirements. Exchanges that hold licenses help to instill trust in users and elevate the reputation of the cryptocurrency market as a whole. This, in turn, helps to attract institutional investors that bring further professionalism and legitimacy to the market.
Executing Large Trades
Virtually all crypto exchanges can handle small-scale trades. What sets the best crypto exchanges apart from the rest is their ability to manage large trades. Leading crypto exchanges work with market makers to provide deep crypto liquidity, which ensures that investors can execute large orders without the price moving against them. Deep liquidity also allows for more stable, around-the-clock trade coverage, ensuring that users around the world can make trades at a time that suits them, be it a weekday afternoon or an early weekend morning.
Robust Performance
In a volatile and fast-acting market, having access to a reliable exchange platform is vital for getting ahead. The best crypto exchanges offer robust performance, ensuring that their platforms work smoothly even during peak periods. Even when the market is active, trades should be completed without any noticeable lag. The leading platforms also invest heavily in design, ensuring that their platform is intuitive to use. In fact, you could argue that the most clear sign that a crypto exchange is one of the best is that you don’t even pay attention to it; the experience should be so smooth that you’re able to focus completely on your investments.
Proven Reputation
Established crypto exchanges have a proven track record of customer trust. While newer platforms can have advantages, and aren’t necessarily untrustworthy, ones that have been in operation for years tend to inspire more confidence.
Customer Support and Resources
Finally, leading crypto exchanges invest heavily in customer support, ensuring that users can get the help they need when and where they need it. Many provide round-the-clock support in multiple languages, including via email, telephone, and live chat support. They also offer extensive resources and other information on their websites, which gives users confidence that they’re dealing with a professional, expert platform.
