Coinbase is certainly a household name among many crypto users and investors. Due to the high liquidity it offers, amateurs and experts alike recognize the platform as one of the best go to exchange for buying and selling different cryptocurrencies, with the mainstream ones being Bitcoin and Ethereum. Nevertheless, there are still other better substitutes to the renown crypto platform. Outlined are pointers to finding an equally good option.
These options are not only a great option but also is more profitable for you. Liquidity is another thing that we have considered while framing these 5 other way to have a Coinbase alternative. With the virtual currency, security has become a major concern and so, you must take care of security stuff while selecting any great crypto platform for the investment or trading. Usually, the basic security measures are taken care with almost all the crypto platform, but you need to take additional care for your account.
1- Security is a key indicator
You certainly wouldn’t love going through the experience of losing any of your hard-earned virtual currencies to a fraudulent platform or hackers. Before considering any other specifications of an exchange platform you are eying, security stands first. A solid security architecture is detailed with SSL certificates that cryptographically secure the data on transit, cold storages for cryptocurrencies not being exchanged, instant transactions, among several others.
2- Speed of transactions
One of the challenges that has hardly hit the blockchain technology is the speed at which transactions can be processed. Different upcoming exchanges, as well as existing cryptocurrencies, are consistently looking for a means by which they can upgrade the speed at which transactions are processed; CoinBex is one such exchange, that is founded on a technology providing instant crypto exchange and pure wallet to wallet transactions.
Speedy transactions eliminate the risk of users losing their coins in the process of finding their preferred matching pairs. And when transactions are instantly facilitated, there is no need for cryptocurrency storages or vaults hence a more tamperproof system.
3- A good team means a good exchange
Investigate the team behind the exchange that you anticipate trusting with your cryptocurrencies. Scrutinize their LinkedIn profiles or any other relevant sources outlining their previous achievements before coming up with the idea of setting up a cryptocurrency exchange platform. A previous successful career trail presents a better chance of efficiently handing other subsequent projects.
Avoid exchange platforms whose members are anonymous and unwilling to unveil their identities since no one will be held accountable when the exchange is hit by a major scandal. A reliable team should also clearly outline their physical location.
4- High liquidity means a better trading platform
The number of cryptocurrency pairs offered by an exchange platform matters a lot, especially to traders in search of liquidity for various crypto assets including ERC-20 tokens. Depending on the scope of your investment, always consider the liquidity level of the platform you anticipate to use. If you are a wide investor, an exchange platform with high liquidity will work best for you.
If you are a small investor also, you must these options so that you will be having some solid options left and get the best offers which in turn will be beneficial for you.
5- The exchange rates and fees impact the final amount received
Finally, do not neglect the exchange rates and fees offered by the alternate exchange site whose services you look forward to embracing. Some exchange sites impose exorbitant trading fees while at the same time offering low exchange rates thereby leaving users with lesser amounts of cryptocurrencies at the end of a transaction. Furthermore, always remember that exchange sites with fluctuating exchange rates can always play to your advantage when there is a surge in the value of the coins you are trading.
Although Coinbase is one of the leading marketplaces for cryptocurrency but as they are the bigger fish in the market and so, rules are quite hard. Also, multiple times you will find something like some payment methods are not accepted or account blocking issue without any prior notice. And so, in such cases, these five tips will help you find the best alternative for the same.