How to Select The Best Decentralized Exchange For Your Crypto Trading Needs
People today are spoilt by the number of choices they have. Take any market commodity. There are thousands of brands to choose from, making purchasing a cumbersome task because of choice fatigue. Crypto exchanges are no exception to this. With so many exchanges available, which one is the best in the market? Which one is going to suit your needs best?
The answers to these questions lie in finding the features that matter to you and choosing the crypto exchange that excels in those particular aspects. Let’s now take a look at the most important factors when comparing and contrasting the exchanges in the market.
One of the best parts about decentralized exchanges is the security that the concept offers. Decentralized crypto exchanges (DEXes) do not provide a built-in wallet, i.e., you can connect your DEX to whatever wallet you are most comfortable with. Since the wallet is not built-in, exchanges cannot keep track of your funds either. This ensures a relatively more secure and more reliable ecosystem to trade on compared to traditional exchanges. Also, along with their decentralized nature, if a DEX is also a P2P exchange, it’s a cherry on the top.
A common saying is that an exchange is as good as its listed cryptocurrencies. You shouldn’t have to keep switching exchanges because one doesn’t offer a particular niche coin that you trade with. There are over 4000 cryptocurrencies in circulation today according to CoinMarketCap.
Therefore, along with the number of cryptocurrencies, it is essential to pick an exchange whose list exclusively has credible tokens and offers multiple base pairs for each token. Research and choose the coins you’re going to invest in; analyze the platforms that support those coins; then choose your platform.
Pricing is an important factor while selecting a decentralized exchange for you. Fees and methods of charging fees could be different from exchange to exchange. Some may charge only the buyers, while others may charge both buyers and sellers. Since some decentralized crypto exchanges tend to have hidden charges that could potentially hurt their user base, you must check out the fee section of an exchange thoroughly and see for yourself if the service is worth your money.
Nobody wants to come across performance problems while trading cryptocurrencies. Worse, no one wants to be lost when such situations do occur. With exchanges completely digital, genuine queries, complaints, and other confusion need to be addressed quickly, either via email, chat, or call. When such queries arise, it’s certainly reassuring to know that someone is going to be there to help you.
When you compare cryptocurrency exchanges, make sure to take their customer support into account. Some use chatbots, some allow real-time communication with employees, etc. You don’t want to choose an exchange and face insurmountable hurdles along the way.
Payment methods are the game-changing factor here, especially since we’re dealing with cryptocurrencies. A major benefit of cryptocurrencies, after all, is that it affords users the opportunity to stay away from the prying eyes of banks. That is why the concept of P2P exchanges is gaining popularity.
In addition to providing enhanced security, a decentralized exchange with a built-in P2P service is a compelling option given the wide array of payment methods. An ideal decentralized crypto exchange with FIAT deposits should have multiple payment options — PayPal, WeChat Pay(China), UPI (India), and much more.
Who doesn’t love rewards? Most Decentralized exchanges have wonderful referral programs that reward you with crypto tokens (often native tokens). While this can sound underwhelming, do keep an eye out for tokens offering real value — by giving you a say in the governance of the platform, or truly representing a quality service so that it appreciates in value. Referral programs are a great way of earning and can be considered investment options in themselves. Look for the exchanges that offer the best rewards.
While some centralized cryptocurrency exchanges are tailored for beginners, a DEX is ideal for beginners and full-time, experienced crypto investors alike. Make sure you consider all the factors mentioned in this article and choose an exchange that feels tailor-made for you.
At CryptoLocally, we have taken into account all these factors and more, to make all users feel important and valued. There’s support for 12 major cryptocurrencies and the 10 most popular altcoins, including our much-loved GIVernance token. You can even choose from 40+ payment methods. We promise you’ll love the platform.