Successful crypto investments have the following components:
- Knowing trading strategies
- Ability to analyze the market
- Ability to access risks and hedge them
- Working on a reliable crypto platform.
Picking a crypto asset for investments is a no less responsible task. It is easy to get confused among over 20 000 assets presented in the market. Experienced investors advise diversifying portfolios by buying mega-cap coins (such as BTC) and adding middle-cap coins (such as Chain link coin).
Let’s talk about choosing a crypto exchange for investment. It is a responsible task because when you put your funds on a platform, you wait for it to protect them as much as possible.
How to Find a Worthy Crypto Exchange?
First, let’s find out what is a cryptocurrency exchange. It is a platform (website) that provides necessary tools for crypto trading and charges fees for services. When picking a platform for trading, consider these characteristics:
- Who are the developers and founders, and what are their reputations and backgrounds?
- Does a platform has sufficient liquidity?
- Does it support the trading pairs you need?
- How does the fee policy look like? Is the commission fixed for all operations?
- Is the exchange protected against hacker attacks?
- In what way does the platform store user’s funds? Is it a custodial or non-custodial platform?
- What trading instruments does it offer?
- Is there an opportunity to open trades with fiat currencies and withdraw money to a bank card?
- User reviews on the service. What troubles did the client face working with the exchange?
When you find the answer to all these questions, you will get a clear picture of it and understand if you want to work with it or not.
What is the Best Crypto Exchange for a Novice Trader?
We recommend starting with the WhiteBIT platform. It is a highly secure crypto exchange with complex mechanisms of protection against hacker attacks. It is a regulated platform which means all transactions are tracked, and all illegal actions are noticed and blocked. WhiteBIT is a custodial platform that holds 96% of users’ funds on cold wallets.
The platform supports a wide variety of assets and allows one to enter the markets with fiat currencies. Learn more about the WhiteBIT crypto exchange on its blog.