Trading 101
August 12, 2021

How to Choose your Crypto Exchange

Selecting a crypto exchange to trade Bitcoin, Ethereum, Dogecoin, and hundreds of other digital assets can be a complex, overwhelming experience. Today, we provide tips and strategies for researching the top cryptocurrency exchanges so you are equipped with knowledge when making your choice.

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Before all, let's learn more about exchanges:

What is a cryptocurrency exchange?

  • Exchanges are platforms where you can buy or sell cryptocurrencies like Bitcoin.
  • There are two types of exchanges: centralized which have custody of your funds and decentralized which let you trade directly from your wallet
  • Exchange offer numerous market pairs allowing you to trade any of your crypto for another or for cash.

This blog will walk you through the process of choosing your cryptocurrency exchange for day trading.

Prioritize Security

The best crypto exchange platforms employ numerous security techniques and protocols to keep your digital assets safe from unauthorized user access, including:

  • Requiring a unique, strong password
  • Encouraging the use of two-factor authentication (2FA)
  • Offering functionality to use API keys for trading as well as other sensitive data

Assess the Crypto Platform’s Reputation

To help define which platforms are trustworthy, try these three ways to learn about an exchange’s reputation:

  • Peers - Reach out to peers and trading colleagues to find out what their favorite crypto exchange and why.
  • Reviews - Check out review platforms like TrustPilot and read the user feedback on GooglePlay and the App Store.
  • Exchange listings - Crypto exchange listing platforms like CoinMarketCap and CoinGecko provide real-time data on exchange activity. CoinGecko recently implemented a “Trust Score” for each platform:
”select-cryptocurrency-exchange-trust”
Top 10 Crypto Exchanges (Spot) - Coin Gecko

As you can confirm, Quadency’s multi-exchange trading desk only partners with trusted and reputable leading exchanges.

Compare Cryptocurrency Exchange Features

What are the key crypto exchange features you need to successfully trade? Here are some important considerations:

  • Charting - Are you able to customize your TradingView charts and save them for later?
  • Data Analytics - Does the exchange provide real-time access to streaming data for portfolio analytics across multiple platforms and wallets? What are the market research capabilities?
  • Cross-Platform Functionality - Is it easy to feed into the data of other exchanges with API keys? Can your total portfolio, including offline wallets and multiple exchanges, be integrated for a streamlined portfolio experience?
  • Fees - Be sure to compare the fees for trading, funding, withdrawing, liquidations and bot services. Many exchanges also offer discounts if you use their exchange token. Each platform should provide a clearly written fee schedule.

Quadency provides advanced charting, high-quality streaming data, a unified trading experience, and a free plan that includes multiple bot strategies. Traders can manage and track their portfolio performance across multiple wallets and exchanges with no additional trading fees.

Volume & Liquidity

A large trading volume is a strong indicator of your platform’s liquidity, reliability, and order-execution capabilities. High volume and liquidity are essential to help ensure you can buy or sell at the best price at any time.

  • The top digital currency platforms currently hold over $1 Billion USD under management.
  • The most reliable platforms should showcase at least $500 million USD traded in 24-hour volume.
”best-bitcoin-exchange-volume”
Top 5 BTC Pairs by Volume and Per Exchange

In addition, we invite you to take a closer look at the order book of the specific pair you're trading. Exchanges might have a great liquidity for a specific pair but not all of them.

Platform Bot Capabilities

Before you choose a crypto exchange, consider the available bot integrations that the platform offers. You’ll want to integrate with sophisticated, powerful bots that make automated crypto trading simple. Leveraging these solutions, you can implement pre-built trading strategies, customize and backtest them, then go live within minutes.

The Quadency platform offers a variety of popular bots that vary in complexity but are all simple to set up. This empowers you to trade on a 24/7 basis, learn more about the industry, and remove emotions from crypto trading.

Summary

To recap, when choosing a crypto exchange platform, research the following:

”how-to-choose-a-crypto-exchange-quadency-01-1”

When you’ve covered all the bases, your job of choosing a trading platform that works for you becomes an educated decision.

Select an Exchange

Before all, let's learn more about exchanges:

What is a cryptocurrency exchange?

  • Exchanges are platforms where you can buy or sell cryptocurrencies like Bitcoin.
  • There are two types of exchanges: centralized which have custody of your funds and decentralized which let you trade directly from your wallet
  • Exchange offer numerous market pairs allowing you to trade any of your crypto for another or for cash.

This blog will walk you through the process of choosing your cryptocurrency exchange for day trading.

Prioritize Security

The best crypto exchange platforms employ numerous security techniques and protocols to keep your digital assets safe from unauthorized user access, including:

  • Requiring a unique, strong password
  • Encouraging the use of two-factor authentication (2FA)
  • Offering functionality to use API keys for trading as well as other sensitive data

Assess the Crypto Platform’s Reputation

To help define which platforms are trustworthy, try these three ways to learn about an exchange’s reputation:

  • Peers - Reach out to peers and trading colleagues to find out what their favorite crypto exchange and why.
  • Reviews - Check out review platforms like TrustPilot and read the user feedback on GooglePlay and the App Store.
  • Exchange listings - Crypto exchange listing platforms like CoinMarketCap and CoinGecko provide real-time data on exchange activity. CoinGecko recently implemented a “Trust Score” for each platform:
”select-cryptocurrency-exchange-trust”
Top 10 Crypto Exchanges (Spot) - Coin Gecko

As you can confirm, Quadency’s multi-exchange trading desk only partners with trusted and reputable leading exchanges.

Compare Cryptocurrency Exchange Features

What are the key crypto exchange features you need to successfully trade? Here are some important considerations:

  • Charting - Are you able to customize your TradingView charts and save them for later?
  • Data Analytics - Does the exchange provide real-time access to streaming data for portfolio analytics across multiple platforms and wallets? What are the market research capabilities?
  • Cross-Platform Functionality - Is it easy to feed into the data of other exchanges with API keys? Can your total portfolio, including offline wallets and multiple exchanges, be integrated for a streamlined portfolio experience?
  • Fees - Be sure to compare the fees for trading, funding, withdrawing, liquidations and bot services. Many exchanges also offer discounts if you use their exchange token. Each platform should provide a clearly written fee schedule.

Quadency provides advanced charting, high-quality streaming data, a unified trading experience, and a free plan that includes multiple bot strategies. Traders can manage and track their portfolio performance across multiple wallets and exchanges with no additional trading fees.

Volume & Liquidity

A large trading volume is a strong indicator of your platform’s liquidity, reliability, and order-execution capabilities. High volume and liquidity are essential to help ensure you can buy or sell at the best price at any time.

  • The top digital currency platforms currently hold over $1 Billion USD under management.
  • The most reliable platforms should showcase at least $500 million USD traded in 24-hour volume.
”best-bitcoin-exchange-volume”
Top 5 BTC Pairs by Volume and Per Exchange

In addition, we invite you to take a closer look at the order book of the specific pair you're trading. Exchanges might have a great liquidity for a specific pair but not all of them.

Platform Bot Capabilities

Before you choose a crypto exchange, consider the available bot integrations that the platform offers. You’ll want to integrate with sophisticated, powerful bots that make automated crypto trading simple. Leveraging these solutions, you can implement pre-built trading strategies, customize and backtest them, then go live within minutes.

The Quadency platform offers a variety of popular bots that vary in complexity but are all simple to set up. This empowers you to trade on a 24/7 basis, learn more about the industry, and remove emotions from crypto trading.

Summary

To recap, when choosing a crypto exchange platform, research the following:

”how-to-choose-a-crypto-exchange-quadency-01-1”

When you’ve covered all the bases, your job of choosing a trading platform that works for you becomes an educated decision.

Select an Exchange

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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.

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