Ethereum is one of the most commonly traded altcoins, running on a network of millions of computers globally. Owing to its high developer engagement and liquidity, you can easily buy this cryptocurrency at an Ethereum Exchange.
Cryptocurrencies can be bought and sold at open exchanges, according to the Government of Canada. They can also be used to buy goods and services in stores that accept digital currencies. Ethereum is the second most popular cryptocurrency in Canada, next only to Bitcoin.
Why Buy Ethereum?
- A large community of developers backs Ethereum.
- Due to its popularity and wide acceptance, ethereum has a high liquidity rate.
- The smart contracts used in the blockchain cannot be modified, offering complete encryption and security.
Why Should You Use a Cryptocurrency Exchange?
A cryptocurrency exchange offers beginners a user-friendly platform to get started with trading cryptocurrencies. Most exchanges have a straightforward process of registering, verification, and deposit, after which you can start trading.
Exchanges offer a centralized platform that is secure, easy to understand and use. It provides a unified view of all your digital assets. Beginners can leverage the functionality of the exchange to familiarize themselves with cryptocurrencies and gain market exposure.
If you are an experienced trader, then technologically advanced features such as integrated view, open order books, faster APIs would interest you.
How to Select the Best Ethereum Exchange?
Cryptocurrency exchanges offer a variety of features to users. It is the users who need to prioritize their requirements and then look for a cryptocurrency accordingly.
Here are some of the factors to be considered for selecting the best cryptocurrency exchange.
Security
As you are dealing with valuable digital assets, knowing how secure the exchange is of prime concern. How secure is the cryptocurrency exchange you want to sign up with? Have there been any previous attempts to hack into its network?
Apart from securing their platform, what security measures are offered to users? There are exchanges out there that have embedded biometric security into their authentication process. Look for the different security measures adopted, read reviews to understand the exchange’s stability and reliability.
Fees
There are different types of fees involved depending on how you are buying and selling ethereum. For example, if you are using Canadian dollars to buy ethereum, meaning you are using a fiat currency to buy a cryptocurrency, then the deposit and withdrawal process would attract charges.
There are trading fees involved, depending on the amount and volume of your transactions. There is a spread fee involved, a small fee you pay the exchange to place the trade on your behalf.
Understand what and how much fees the exchange will charge you for making a trade.
Ease of Use
As mentioned above, one of the strongest suits of a cryptocurrency exchange is its user-friendly platform. You can log in to your account from anywhere at any time and start trading. You can view the digital assets under your portfolio, order books, real-time prices and place trades, all on the same platform.
Some exchanges offer mobile applications of their platform, simplifying the process and making the experience all the more convenient for novice users.
Payment Methods
Exchanges offer a variety of payment methods to complete the deposit and withdrawal process. You can transfer money using net banking, e-wallets, debit or credit cards.
You want to buy ethereum, but you do not have any crypto coins to proceed with. With exchanges, you can use your debit or credit card to buy ethereum; how convenient is that?
Cryptocurrencies
There are exchanges out there that deal with the top 10 to 15 widely accepted cryptocurrencies globally. Then some exchanges offer over 180 different types of cryptocurrencies to deal with.
This factor depends on your investment portfolio and risk appetite. If you want to trade in multiple cryptocurrencies, an exchange offering them would be a good bet.
Customer Support
When you run into an issue or have a concern, technical or non-technical, who do you turn to? Is there customer support available on the cryptocurrency exchange platform?
With a cryptocurrency exchange, you can trade 24*7. In case of any queries that arise, customer support should be available and capable of solving them. A customer care number or a live chat option would be a preferred medium of communication.
Finding the best possible Ethereum Exchange can be an overwhelming task. The factors mentioned above can help you sort the options available at your disposal. List down your requirements, features you cannot compromise on and then start evaluating exchanges. With the competitive market out there, the cryptocurrency exchange should cater to your demands and not the other way around.