5 Signs of a Beneficial Crypto Exchange

Alex Curran
By Alex Curran
8 Min Read

If you’ve spent any time in the world of cryptocurrency, you’ll know how important it is to find a reliable crypto exchange. Your exchange is the platform that allows you to utilize and trade your digital currencies. However, not all exchanges are created equal; some come with serious advantages over others. If you want to make sure that your money is safe in an exchange and that it offers everything it should, there are several factors to look out for:

Wide Range of Trading Options

As a trader, you want to be able to trade in the way that suits you best. That might mean being able to do technical analysis or other forms of trading that are more advanced than simply buying and selling. Or perhaps it means having access to a wide range of coins and tokens so that you can easily trade them. It could also mean having access to margin trading to make bigger bets without having your capital tied up in the process. Beginner and advanced traders alike need an exchange that offers them the strategies and tokens they require to reach their investment goals. Platforms like FTX can provide traders at all levels with access to over 300 coins and advanced trading tools like margin trading and leveraged tokens.

Whatever your preference may be, there’s no denying that more options are better for crypto exchanges. The more trading options available on an exchange, the better chance it has at providing its users with what they need—and being able to trade quickly and efficiently is always going to win out.

User-Friendly Interface

A good crypto exchange will have an easy-to-use interface with a good search function for finding cryptocurrencies. It should also be easy to deposit and withdraw funds from your wallet so you can quickly cash out when needed. Many crypto exchanges will also offer broad knowledge bases with information on everything from how to buy Bitcoin to how to trade crypto on margin. You may also want to consider whether the exchange has precise buying and selling instructions and a customer service team that is available for questions or concerns 24/7.

Crypto exchanges will be centralized or decentralized based on how they are managed. Third parties operate centralized exchanges, which take fees for verifying each transaction made on the platform. Centralized exchanges are generally more user-friendly and accessible because they sell their services and want to attract more users. On the other hand, decentralized exchanges are run by smart contracts, not third parties. This means decentralized exchanges do not charge third-party fees, but they generally aren’t as user-friendly. If you’re an advanced crypto trader looking for opportunities to lower your costs, learning how to navigate and utilize a decentralized exchange for peer-to-peer trading could save you lots of money yearly.


You can be sure your cryptocurrency is safe if you use an exchange with a reliable security system. Some exchanges offer two-factor authentication, or 2FA, meaning users must enter a PIN code when accessing their accounts. Others use biometric scanners for identification purposes. If you don’t see any evidence of these methods on your exchange’s website, it’s probably not the best place to store your money.

If you think someone else has gained access to your account and withdrawn money from it without permission, report this immediately to the exchange so they can investigate the matter further and possibly reverse the transaction if necessary. Most digital wallets will require access phrases, so always keep track of your passwords and login information, so you don’t loose access to your funds.

Powerful Platform and Liquidation

Look for a crypto exchange that offers a robust platform that provides you with top-notch security and fast transactions. The trading engine should be reliable and not prone to unexpected outages or other technical issues. At the same time, customer support should be helpful and quick to respond whenever you have questions or concerns. Finally, the cryptocurrency exchange must have an app that works well on mobile devices so you can trade while on the go.

Not only should the platform itself be fully functional and quick for users, but your exchange should have ample liquidation behind it. Liquidation is crucial because it determines how quickly you can cash out your investment into fiat currency when prices drop or you need to get out of an investment. The FTX platform, for example, has a strong liquidation engine that protects the users on the platform by automatically liquidating unsalvageable positions for leveraged traders and minimizing socialized losses. Liquidation is an important indicator that you’re utilizing a successful exchange.

Competitive Trading Fees

The fees involved are significant considerations when selecting the best crypto exchange for you. Trading fees will typically go to the third party governing your exchange, and most exchanges will take payments for every type of transaction or investment made on the platform. Some exchanges like FTX offer competitive discounts on top of many trading options for beginner and advanced traders. If you invest in the FTX Token, you can benefit from even further discounts on trading across the FTX platform. Be sure to research before selecting the exchange that will help you minimize your fees as much as possible. If you’re a daily trader, you may seriously benefit from reevaluating how much you pay in fees per trade and consider switching to a more profitable exchange.

Crypto exchanges are a valuable resource for traders and investors. They help people get involved in cryptocurrency markets and make money from their investments. However, finding the best exchange can be difficult because there’s so much competition. Though it takes time to find the proper exchange for you, once you’ve got it, you can start making profitable trades and sustainably building your crypto portfolio. 

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