Cryptocurrency popularity is ever-increasing, and the list of crypto exchanges, brokers, and converters is seemingly endless. With over 1,000 platforms to choose from, finding the right one for your needs is a challenge. Instead of relying on ads, influencers, or unsolicited advice, use our checklist to find the one converter that suits you best. We’ll go through six points, from vital must-haves to nice-to-have frills you may ignore. If you use this checklist and remember that crypto trading is not a surefire way to make a profit, you will stay out of trouble, and your assets will be safe.
Solid Converter Reputation
For every crypto success case, there’s a horror story of losing life’s savings, either in a volatile price crash or an exchange security breach. While the number of converters grows and their security improves, the number of breaches is also steadily rising. When choosing an exchange, consider companies that provide direct coin transfer to your wallet instead of keeping the funds in local storage. You should also research the history of breaches and the security measures in place to prevent unauthorized access to your personal and financial data. Do not use a converter with the best exchange rates if you’re not 100% sure of its safety.
Reasonable Exchange Conditions
Whether you’re a novice or an experienced investor, look into minimum and maximum exchange limits. The minimal number usually depends on the coin price. And while some exchanges don’t have a maximum order limit, large sums take longer to process. Exchange fees are another critical factor. You want to look for the lowest fees, especially if you intend to swap cryptocurrencies often. Always factor in the fee with the exchange rate, as the most attractive conversion opportunities fall prey to high service charges.
Working with popular coins is easy, and you can run a BTC to ZEC exchange on virtually any platform. However, there are over 4,000 cryptocurrencies currently on the market with varying reputations, prices, and potential. You may not be interested in getting a token of each, but it’s always nice to keep your options open, and the best crypto converters work with 100 coins at the very least. For instance, Godex exchanges 200+ tokens, while eToro comes with only 14 options, from Bitcoin to Tezos.
Coinbase won’t let you do anything without creating an account, and that’s likely due to the Know Your Client (KYC) regulations crypto exchanges fall under. Unfortunately, there’s no way to get around this if you want to buy tokens with fiat currency. You’ll need to provide credit card info, your PayPal account, or other payment details. If you’re unwilling to share personal info, especially with the ever-growing number of security breaches, look for privacy-first converters. Some, like Godex, don’t even ask for an email. Private cryptocurrency wallet support is another sign of a converter looking out for your privacy.
Fiat Currency Support
This point contradicts the previous one, but we couldn’t leave it out. If you’re interested in exchanging one coin for another to diversify your portfolio, you can have your pick among anonymous exchanges. However, if you want to sell crypto and get USD, any respectable converter will ask for your personal info. There’s no getting around KYC with fiat currencies. To enjoy the best of two worlds, use a combination of two or more reliable exchanges to buy crypto and then anonymize your exchanges.
Advanced Investment Capabilities
If you’re a crypto novice, the two features to look for are price charts and fixed-rate exchanges. The former will let you analyze the recent trends before you commit to an order. You can use the charts provided by converter websites or use aggregated analytics to guide your decisions better. A fixed-rate exchange is crucial for high-volatility assets, such as cryptocurrency. The sum you see at the time of placing the order should be the same you receive in your wallet. If that’s not the case, consider switching to a fixed-rate exchange, like Godex.
Once you feel confident about your crypto trending capabilities, you will want to look for advanced trading features. These may vary from stop loss (or trailing stop loss) and take profit to a virtual portfolio or offline trading.
Choosing a cryptocurrency converter should be about security and convenience first. While the trading bells and whistles are great, you need to focus on keeping your assets and personal details safe. And privacy-first converters are the best fit for that.