What’s the Best Crypto Exchange for Beginners?

It seems like 2020 and 2021 have both been banner years for alternative investment options. From the major upset on Wall Street, as Reddit investors drove up the stock for AMC and GameStop, to big moves for Bitcoin (BTC) and Dogecoin (in part spurred by Elon Musk), online investing has been having its day in the sun. That being said, many people can hardly explain to you how cryptocurrencies work, much less whether or not they’re a good investment—even though the price on many crypto coins continues to rise.

The good news is that you don’t need to understand blockchain technology in order to invest in crypto. You will need to make an account and wallet at a cryptocurrency exchange, however. While this can sound a bit complicated, it’s actually a lot more straightforward than you might think. Learn more about cryptocurrency exchanges below, as well as how to find out which exchange is best for you.

What exactly is a cryptocurrency exchange?

In order to buy and sell cryptocurrency, you need to have an account at an exchange. A crypto exchange is much like any other sort of money exchange. For example, if you go to another country, you often have to exchange your currency into their currency so that you’re able to spend your money abroad. A cryptocurrency exchange is very similar, except that it’s an online money exchange. Most cryptocurrency exchanges offer the ability to buy cryptocurrencies as well as sell and trade those crypto coins for other types of currency.

Some exchanges offer features for tracking performance and charting your portfolio’s growth as well. Ultimately, while you’ll want to find an exchange that allows you an exit strategy via your local fiat currency (such as U.S. dollars), it’s just as important to take a look at the trading services offered within your exchange as well. This is because you’ll want some flexibility when it comes to the sorts of crypto trades you can make in your crypto portfolio, too. Being able to exchange for other tokens and coins such as Ethereum, Monero, and Doge all gives you more options as a crypto trader.

How do you know which cryptocurrency exchange is the best for you?

For beginners, it’s easy to get inundated with the sheer volume of options when it comes to crypto exchanges or crypto portfolio trackers. The best crypto portfolio tracker for you may not be the ideal crypto portfolio tracker for another user, so it’s important to outline the features that matter most to you before you make an exchange account.

For example, if you’re a beginner, ease of use may be one of the biggest draws to a certain exchange. International users may also have limits placed on their exchange accounts, in which case it’s a good idea to investigate what the rules and regulations are surrounding your bank account and the crypto market before you make an account. Still, others prefer to have a lot of options when it comes to the different exchanges and trades that they can make, especially if they love being able to have new coins. The best way to learn about which is the best option for you is to read up online. A Binance, Coinbase, or Blockfolio review can give you the insight you need to make an informed decision. Whether that’s getting the hard facts about the mobile device or desktop computer functionality of the exchange you’re looking at or an in-depth rundown of the portfolio management tools and customer support, finding a third-party review can be a great way to ensure that your crypto assets are in the right crypto exchange for you.