Since you decide to take a step into crypto, as well if you have been in for a while, a good thing to do is to choose carefully the exchange you are going to use, or to evaluate your current one. The mere interface doesn’t tell you much about exchange reliability. In the last year only, Celsius bankrupt has been the least but not the last one to blow up, leaving users desperately longing for their money.
Most influencer promote exchanges, but DYOR is a mantra you need to learn: do your own research.
Therefore, here are few tips to spot yourself the exchange you trust more.
First, consider if you wan to operate on a CEX or a DEX, that means a custodial or non custodial one. In one case, you never loose the held of your crypto, in the other you deposit them on a CEX, as you would with a bank, and trade.
Given this “philosophical” (and strategic) choice, about what you can find a lot of literature, one good check can be done on @coingecko.
- Go on Coingecko and then on excanges. You can sort by centralised and decentralised.
2. Check their “trust score”, that is a rating alghoritm developed by coingecko to evaluate an exchange trading volume legitimacy
3. Cross reference with “Exchange Score” on @CoinMarketCap, that is based on indicators such as traffic, trade, liquidity
4. Check their trading volume.
Up today the best ranked is binance, but more are available. Check this often, in particular when high staking APR and/or bonuses are promised.
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