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Views: With the growing popularity of cryptocurrencies and the increasing number of platforms available, choosing the right exchange is becoming an increasingly difficult task. According to Statista, there are currently about 10,000 crypto exchanges.
In this article, we will look at the key factors to consider when choosing an exchange, as well as provide a list of suitable exchanges for clients from Russia.
Choosing an exchange: main criteria
Reputation
The reputation of an exchange is a priority criterion to consider. Good reputation means audits, ratings and reviews. Use independent sites and forums such as Trustpilot, Reddit and CoinGecko. This will help determine the reliability of the exchange and how it handles user issues. Reputation is correlated with:
Market liquidity: A high level of liquidity allows you to enter a transaction at the stated price and more quickly.
Ecosystem development: As a result, users get extensive tools and services for more diverse trading.
Transaction cost: With a large number of users, transactions can be significantly reduced.
In addition, an exchange's reputation can indirectly influence its legality and oversight. Exchanges with a proven track record of complying with laws and being regulated by supervisory authorities are able to obtain appropriate certificates to confirm their legality and help increase trust in them.
Usability in interface and tools
The success of your trading can be largely influenced by the interface and the tools presented. These criteria are important for both beginners and professional market participants. In order to familiarize yourself with the platform, many exchanges offer demo versions. This allows you to trade on virtual assets and get used to the interface.
Attention should also be paid to the availability of the exchange's application, as well as its operability.
Currency pairs for trading
Pairs refers to a combination of two assets exchanged between each other on an exchange. For example, the popular BTC/USDT pair displays the value of one Bitcoin in US dollars.
Trading pairs on an exchange gives traders the flexibility to manage their investment. Having different trading pairs in a portfolio can help reduce risk and increase potential profits.
Understanding the interrelationships between different trading pairs helps a trader make informed decisions about asset trades. Data on how one trading pair correlates with another helps in making good decisions on the timing and nature of asset trades. This knowledge is the basis of arbitrage strategies.
The choice of trading pairs directly affects the choice of crypto exchange. Some platforms have limited access to trading pairs, while others offer a much more diverse range of assets.
Trading volume
Trading volume on an exchange is one of the key metrics to consider. Trading volume shows how actively users are trading on an exchange, and this can affect liquidity and price stability.
High trading volume usually indicates high liquidity, which means you can buy or sell cryptocurrency quickly at the market price. A low trading volume may result in you not being able to execute your orders at the desired price, which can lead to costs, especially in a highly volatile market.
Transaction Costs
The price of transactions on the exchange can depend on a number of factors such as the volume of the transaction, the use of leverage and the method of calculating commission. Let's take a closer look at these aspects:
Type of financial instrument: Some instruments, such as leverage, can exhibit greater volatility, which can result in higher transaction fees.
Transaction size: The cost of a transaction often depends on the size of the transaction. Brokers may offer commission discounts for large transactions to attract more customers.
Method of commission calculation: Different brokers use different approaches. Some set a flat fee regardless of the amount of the transaction, while others charge a percentage of the total transaction.
The definition of what is considered a low commission can vary widely. On new exchanges, commissions average between 0.05% and 0.1% of the transaction amount.
Deposit and withdrawal options
To make transactions with cryptocurrency, you need to exchange it for other currencies, such as dollars or rubles. To trade on a crypto exchange, you need to have funds in your account, and deposits and withdrawals can be made in a variety of ways:
- Bank wire/card transfer: transferring funds from a bank account to an exchange account.
- Cryptocurrency transfer: sending funds from a cryptocurrency wallet to an exchange account.
- P2P transactions: many exchanges now support peer-to-peer transactions, including P2P arbitrage.
It is important to keep in mind that each exchange sets its own rules for deposits and withdrawals. Some of them may be available only in certain countries or regions. In addition, there are restrictions on minimum and maximum amounts, transaction processing times and commissions.
Safety and security
These factors play a key role in the protection of funds, trading availability and cryptocurrency transactions.
Licensing and regulation: A license is required by financial authorities such as the Federal Financial Markets Service in Russia, SEC or FINRA in the US, and the FCA in the UK.
Transaction Security: Secure authentication and encryption procedures are the basis for secure transactions. This includes two-factor authentication, SSL encryption and other measures. A system for monitoring expenses to prevent fraud is also important.
Confirmation of reserves: Whether the exchange has a reserve or insurance fund in case of a critical situation, such as the discovery of a vulnerability in the system or a hacker attack.
List of reliable exchanges for users from Russia
Binance - Registration
Description: Binance is one of the largest and most popular cryptocurrency exchanges in the world.
Advantages: Large trading volume, support for multiple cryptocurrencies, reliable security system.
OKX - Registration
Description: OKX is one of the top crypto exchanges and continues to operate in Russia.
Advantages: high liquidity and a variety of trading instruments, including spot trading, futures and options.
Bybit - Registration
Description: Bybit is a large whole cryptocurrency ecosystem with access to multiple digital assets and Web3 services.
Benefits: many diverse products and services on one platform.
Conclusion
Whatever your preferences are in terms of interface, trading tools, cryptocurrency pairs, etc., prioritize the safety of your assets. Do a thorough research before making a decision.
You should also keep in mind that an exchange is not a good way to store cryptocurrency. If a user only plans to buy bitcoin (btc), ethereum (eth) or other digital assets for the long term, it is better to choose cold wallet or other methods.
Frequently asked questions
How do I check the trading volume of an exchange?
You can use aggregators such as Coinmarketcap and CoinGecko to check an exchange's trading volume and rating. However, be careful as companies may make fake trades to inflate the trading volume.
How to secure your funds on a cryptocurrency exchange?
Use two-factor authentication, store cryptocurrency on cold wallets if you don't plan to actively trade, and choose exchanges with a good reputation and a high level of security.
What kind of bonus can I get when registering on a crypto exchange?
As a rule, exchanges provide discount coupons for trading and buying cryptocurrencies. On the Veles side, we also provide a “Commission Free Week” bonus for registering with our partner exchanges (see home page).
How can I replenish my Veles account?
Funding is done through your personal Veles account, via cryptocurrency transfer. We do not charge any commission for funding your account. Your funds on the platform are deducted only as a commission on profitable trades and is 20% (not more than 50usdt/month for each type of trade).
