How to Choose a Crypto Exchange for Beginners?

It’s that time of year again when crypto is the talk of the town, and guess what? You’ve decided to jump in and grab your share of the action! But before you can snag your first Bitcoin, there’s one big question: how to choose a crypto exchange from the daunting number of options available?

There are over 500 exchange platforms competing for your attention, each promising unique perks and advantages. For instance, Binance boasts high liquidity and global popularity, Bybit excels as a derivatives specialist with top-notch functionality, and Kraken earns praise for its regulatory compliance. It’s easy to see why picking the right one can feel like a daunting task, especially if you’re new.

But don’t worry, I’ve got you covered! Let’s break it down together with an easy-to-follow guide on how to choose a crypto exchange to help you find the right one. By the end, you should be ready to start your crypto adventure with confidence!

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How to Choose a Crypto Exchange for Beginners: Key Factors to Consider

When you first step into the vast, ever-changing crypto space, knowing how to choose a crypto exchange you can trust is absolutely important. Think about it—exchanges are the digital hubs where most of the crypto action happens.^[1] Whether you're trading tokens, buying your first Bitcoin, or cashing out your gains to fiat, this is where it all begins.

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Basically, there are two main types of crypto exchanges: centralized (CEX) and decentralized (DEX).

A CEX is run by a single entity that manages your funds and transactions, similar to how a regular bank works. On the flip side, a DEX operates without a central authority figure. It uses smart contracts to manage transactions while giving you full control over your assets.

While the idea of total control sounds appealing, trading using DEXs can feel like venturing into the more chaotic part of cryptocurrency markets.^[2] They often require a more complex setup and greater technical know-how. For beginners, this can be overwhelming and not the ideal starting point.

That’s why, in this article, I’ll focus on CEXs. These are generally more suitable options for newcomers because they are easier to use and provide better support. They take care of most technical complexities, allowing you to focus on learning the basics without worrying about private keys, network fees, or other details.

Now that you understand the difference, let’s look into other important factors to consider when learning how to choose a crypto exchange for beginners.

Security Protocols

When checking out crypto exchanges, safety should always be your main concern. It’s important to choose a platform that keeps your digital assets safe and secure. After all, what’s the point of fancy trading features if your funds are not secure from potential breaches?

Focus on platforms that apply advanced safety measures. Check how they keep your assets safe—good exchanges usually store 90% or more of users' funds in cold storage. This indicates that they take security seriously, keeping the majority of funds offline and safe from hackers.

It’s also a good idea to learn about the exchange's history with security incidents. If a platform has had issues before, see how it responded. Did it compensate users or improve its security measures afterward?

While a clean track record is a good indicator, a transparent and professional response to past issues can show an exchange’s commitment to client safety.

In addition, look for extra security options to protect your account. Features like two-factor authentication, biometric verification, or safe withdrawal lists can help secure your assets even more. If these options are available, make sure to use them to keep your money safe.

The safer venues, the more confidently you can focus on your trading journey. So, always look to choose a crypto exchange with strong security measures.

Liquidity

Good liquidity in a crypto exchange means you can easily buy or sell your coins without causing significant changes to their market price. It also ensures your trades are executed quickly and efficiently, even if you make large transactions. Liquidity is what keeps the wheels of trading spinning smoothly.

Imagine selling hot dogs in a bustling city versus a sleepy small town. In the former, buyers line up, so you can sell quickly and at the price you want. In the small town, you might wait all day for one buyer—and they might haggle for a lower price because demand is scarce.

So, how to choose a crypto exchange with high liquidity? Start by looking at these key metrics:

• Trading Volume: High trading volume means there’s a lot of activity, so orders are filled quickly, and prices stay fair.
• Order Book Depth: A deep order book shows that the market can accommodate larger trades without dramatic price changes.
• Number of Active Traders: More traders mean your buy and sell orders are matched quickly.
• Bid-Ask Spread: A tighter spread indicates that buyers and sellers agree on the asset’s value, signaling good liquidity.

Popular exchanges like Kraken and Bybit often excel in terms of liquidity. Their global reach attracts thousands of traders daily, creating an active marketplace where trades occur swiftly and efficiently. For those trying to figure out how to choose a crypto exchange for beginners, these platforms are always good starting points.

Fees and Costs

If you are new, you may not plan to buy or sell much at first. But it's still very important to consider the fees charged by the marketplaces beforehand, especially if you’re in this for the long haul.

At first glance, fees that are just fractions of a percent may seem negligible. But over time, they can quietly chip away at your profits and seriously impact your total earnings.

In standard crypto trading, exchanges usually charge fees for each transaction, calculated as a percentage of the trade amount. These are split into maker and taker fees.

The former are people who add orders to the market that are not filled right away. They usually pay lower fees because they help the exchange. Takers, on the other hand, are those who fill those existing orders, and they typically pay higher costs because they take liquidity out of the market.

But maker-taker fees are just the tip of the iceberg. Most platforms have a variety of additional charges. So, if you’re figuring out how to choose a crypto exchange that maximizes your investments, here are some other costs to watch out for:

• Deposit Fees: These are fees you might pay when adding money to your account. Depositing cryptocurrency is usually free, but adding fiat might cost extra, depending on how you pay.
• Withdrawal Fees: These fees apply when you take money out of your account. They can vary based on the type of currency and how you withdraw.
• Blockchain Fees: Also known as gas fees, these are the costs of processing transactions on a blockchain. While exchanges usually don’t charge these fees themselves, high network traffic can make them more expensive.
• Inactivity Fees: Some exchanges may charge you a monthly fee if your account is not used for a set amount of time.
• Subscription Fees: Special features or advanced trading tools might come with extra costs.

Many large trading platforms use a tiered structure to help active traders save money. This means that the more you trade, the higher your level becomes and the less you have to pay. If you want to become a serious trader, look for an exchange that offers significant cost reductions at its higher tiers.

Speaking of discounts, some exchanges go a step further by offering native tokens to cut fees even further. For example, Binance allows you to use BNB tokens to pay for transactions at a discount rate or even boost your tier ranking if you hold enough of them.

And here’s a tip: always check an exchange’s fee structure on its official website—it’s usually listed clearly. If it’s not, consider it a red flag and think twice before signing up.

Region Availability

When deciding how to choose a crypto exchange, don’t overlook one crucial question: is the platform available in your region? Many exchanges enforce geographical restrictions due to the wildly varying crypto regulations across the globe.

For instance, some platforms restrict users from countries like Venezuela, the United States, Russia, Hong Kong, and Ecuador from participating in spot or derivatives trading. But, these restrictions are not set in stone and often evolve with shifting laws and policies. That’s why it’s essential to double-check before signing up and stay updated on regulatory changes through trusted news sources.

Thankfully, most exchanges clearly outline their geographical restrictions on their websites. Check the "FAQ" or "Help" section to confirm if your country is supported. A quick search can save you the hassle of discovering later that you can’t trade in your location.

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Available Coins, Trading Pairs, and Fiat

If this is your first day in the crypto market, you probably won’t worry much about which coins an exchange supports. Chances are, you’ll begin by trading the blue chips like Bitcoin or Ethereum, which are available on almost every platform.

That said, as you dive deeper into the crypto world, access to a wider variety of coins will become more important than you might expect.

Imagine starting your journey with Bitcoin—simple, stable, and popular. Then, during a late-night scroll through forums, you discover an exciting altcoin project everyone’s talking about. You’re eager to jump in, but there’s a problem—your current exchange doesn’t support that coin.

Now, you’re stuck creating a new account, going through yet another KYC process, and learning the quirks of a different platform. Not exactly convenient, right?

That’s why picking an exchange with a solid variety of cryptocurrencies from the start can save you a lot of hassle later. Remember, having more options is always better!

Table: exchanges comparison.

But it’s not just about the number of coins an exchange supports—the variety of trading pairs matters just as much.

Trading pairs show which two currencies you can trade directly on the platform. For instance, in the BTC/USDT pair, Bitcoin (BTC) is the base currency you’re buying or selling, and Tether (USDT) is the quote currency you use to trade. So, if you want to buy Bitcoin, you pay with Tether—or you sell Bitcoin to get Tether.

If there are more trading pairs available, you have more options and flexibility. Not all altcoins can be bought directly with fiat currency. Sometimes, you need to first buy a base currency (BTC, ETH, USDT) and then trade that for the altcoin you want. A wider range of trading pairs makes it easier to build a diverse portfolio without needing extra steps.

And let's not overlook fiat currencies. Exchanges that support multiple fiat options offer greater convenience and accessibility. If a platform supports your local currency, you can deposit funds directly using familiar methods like bank transfers or credit cards.

For beginners, this makes the process easier, faster, and less daunting. So, it’s a good idea to choose a crypto exchange that accepts multiple fiat currencies.

User Interface and Experience

For most complete newbies, buying and selling crypto can feel downright intimidating. It’s like stepping into a foreign world filled with charts, numbers, and jargon that makes zero sense. But it doesn’t have to be overwhelming if you choose the right exchange that caters to newcomers.

A beginner-friendly platform typically has a welcoming vibe with a clean interface, simple design, and intuitive navigation. Everything is presented clearly without overwhelming you with complex industry terms.

To make things even smoother, many exchanges now offer simplified tools for those who just want to try buying Bitcoin without dealing with all the complexity. Take Bybit’s One-Click Buy feature, for instance. It makes purchasing and selling crypto easy.

For those with long-term plans, some exchanges provide features like recurring buys or dollar-cost averaging. The aforementioned tools let you set up regular purchase schedules, making it easier to grow your portfolio gradually.

And don’t forget about mobile accessibility! Most popular exchanges now have user-friendly apps that allow you to trade or check your investments anytime, anywhere.

When looking out how to choose a crypto exchange as a beginner, check for these helpful features and tools—they’ll make starting with crypto much simpler and even enjoyable.

Educational Materials

Usually, good newcomer-friendly exchanges have many helpful learning resources. Think video tutorials, beginner-friendly guides, blog posts, and how-to articles. You can think of them as your own crypto mentor, walking you through the basics and helping you build confidence as you start trading.

When choosing a crypto exchange for beginners, make sure to take into account these educational perks. A solid FAQ section and a comprehensive help page are lifesavers when figuring things out. Trust me, they’ll save you from many of those “what does this button do?” moments.

And if you're like me—super cautious and trying to learn as much as possible before taking a step—you might want to check out BitDegree Missions first. It transforms learning about crypto into a gamified, interactive experience that’s both engaging and informative.

Customer Support

Never overlook the importance of good customer support when choosing a crypto exchange! As a beginner, you might make mistakes, like sending your coins to the wrong address or being locked out of your account. A reliable support team can make the difference between resolving your problem in minutes or stressing you out for hours.

Start by checking exchanges with solid customer support reviews. The best ones typically offer multiple support channels, like live chat, email, or even phone assistance.

Here are some other key factors to consider when choosing a crypto exchange with excellent customer support:

• Friendly and empathetic responses: Prioritize exchanges that emphasize a human touch, offering genuine and helpful assistance rather than relying solely on generic, automated replies.
• Personalized and responsive help: Look for platforms with multi-language support and provide solutions that fit your problem. This shows the exchange values its users and their needs.
• Transparency: Make sure the exchange is clear about who they are, their location, and how their support works. Knowing this builds trust.
• 24/7 availability: Crypto markets never sleep, so a round-the-clock support team is essential to address any issues promptly.

If you’re unsure, don’t hesitate to test them out. Send them a few questions before signing up to see how quickly they respond and how helpful they are. Trust me, having great customer support backing you up makes your crypto adventure much smoother.

Popular Crypto Exchanges for Beginners

Congratulations! Now, you understand how to choose a crypto exchange for beginners by yourself. With this knowledge in hand, you’re ready to explore the options out there and find the one that works best for you. Who knows—you might find a hidden gem that perfectly fits your preferences as a newcomer to the space.

That said, if you’re still feeling unsure about where to start, don’t worry! You don’t have to dive into the search completely on your own. Personally, I’d recommend starting with popular and reputable platforms like Bybit, Binance, or Kraken. They’re reliable, beginner-friendly, and packed with features to kick off your crypto journey on the right foot.

Bybit

If my normie cousin Greg asked me to choose a crypto exchange for him, Bybit would be my top recommendation. It has many helpful features, strong security, and is easy to use—ideal for anyone just starting out.

Bybit has a modern trading interface and a user-friendly mobile app. It’s designed to meet the needs of both beginners and experienced traders, striking a perfect balance between simplicity and functionality.

For example, take its One-Click Buy feature. It's incredibly convenient for first-time buyers. With support for over 65 fiat currencies and popular payment methods like SEPA, FPS, Visa, and Mastercard, you can purchase crypto in just a few clicks.

Looking to use digital assets in your everyday life? Bybit has you covered with the Bybit Card, a Mastercard debit card that lets you spend your cryptocurrency in the real world. Whether you’re shopping online, withdrawing cash from ATMs, or paying at physical stores, the card is supported by 90 million merchants globally.

Additionally, Bybit offers 24/7 customer support in multiple languages. Their friendly team is always ready to assist, whether you have a question about a transaction or need help navigating the platform.

For all these reasons, Bybit is easily one of the top cryptocurrency exchanges and a fantastic choice for beginners and seasoned traders alike.

Binance

Even if you’re new to crypto, chances are you’ve already heard of Binance. Launched in 2017 by Changpeng Zhao, it’s one of the biggest names in the industry and is often mentioned in mainstream media.

When you're trying to figure out how to choose a crypto exchange for beginners that’s worth staying with, Binance definitely takes the spotlight. It's a platform where you can learn and grow as you get more into the cryptocurrency world.

For newcomers or casual traders, Binance has a helpful feature called "Buy Crypto". This tool, easily accessible on the website or mobile app, lets you purchase your first Bitcoin in just a few clicks. You enter how much you want to buy, choose how to pay, and then your crypto goes straight to your wallet.

Binance also offers a lot of learning materials. There are guides, video tutorials, blog posts, and a dedicated place called Binance Academy. This section has over 1,000 articles and courses available in more than 30 languages, which helps you learn about crypto, whether you are just starting or want to know more advanced topics.

Now, I’ll admit, Binance’s interface can feel a bit overwhelming at first—especially if you accidentally click on the more advanced parts like the Mining Pool or Earn page. But here’s the thing: it’s designed to grow with you.

As you gain confidence and experience, you’ll find those advanced tools right there, waiting for you to explore. You don’t need to switch to another exchange as you progress—Binance has everything you need in one place.

Overall, Binance isn't just a beginner-friendly exchange. It's also a platform that grows as you do. Whether you're buying your first crypto or mastering advanced trading strategies, it's built to support your journey every step of the way.

Pros

• Very low trading fees
• Exceptional functionality
• Mobile trading app

Main Features

• Very competitive trading fees
• An intuitive mobile app
• Up to 100x leverage available

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Pros

• A very well-known crypto exchange platform
• More than 500 different cryptos available
• Two-factor authentication

Main Features

• Over 500 different cryptocurrencies available
• Strong security
• Small withdrawal fees

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Pros

• Secure and reliable
• Low fees
• A good amount of fiat currencies accepted

Main Features

• Reputable exchange
• Multiple fiat currencies are accepted
• Relatively low trading fees

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Kraken

Kraken is another excellent choice I’d recommend for beginners. It’s particularly designed with new traders in mind, helping you slowly and steadily grow your investment without feeling overwhelmed.

The platform has a clean and easy-to-use layout that's ideal for those just entering the digital currency space. And if you like the thought of trading on the go, Kraken’s mobile app lets you manage your portfolio and trade right from your smartphone without hassle.

With more than 200 different cryptocurrencies available, the platform gives you a good mix of well-known coins and lesser-known options. This variety makes it easy to start with the familiar options and gradually explore more unique choices as you learn. Plus, its fiat-to-crypto conversion feature makes turning your cash into digital assets seamless.

Kraken also sets the bar high when it comes to security and compliance. The platform is licensed in multiple jurisdictions, so you know you’re trading on a reliable, well-regulated exchange. This assurance allows you to concentrate on what really matters—improving your skills and building your confidence as you explore the dynamic landscape of cryptocurrency.

Once you're ready to step it up, Kraken Pro has you covered. It's designed for more experienced traders and comes with advanced tools, lower fees, and special features to help you manage your trades more effectively. It's truly one of the best platforms to support your growth, making it an ideal partner as you move from being a beginner in crypto to becoming more skilled.

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Choosing a Crypto Exchange and Signing Up: A Simple Guide

Now that I've shown you how to choose a crypto exchange for beginners and shared some of the popular options, you’re probably curious about the whole process. If that is the case, here’s a simple step-by-step guide to help you get started:

Step 1: Start by narrowing down your choices. Review the features, security measures, supported coins, fees, and other aspects I've shared earlier. You can also find recommendations from trustworthy websites to help narrow down your choices.

Step 2: Make sure the exchange you’re interested in operates in your area. Even if it looks accessible, some features might not be allowed due to regulation restrictions. To avoid any unexpected issues, it’s a good idea to look at their website or FAQ section to find out for sure.

Step 3: Once you’re confident in your choice, go to the exchange’s website or app and click “Sign Up”. Provide basic details like your email address and create a strong password. If available, make sure to enable two-factor authentication and biometric verification for added security.

Step 4: Most trustworthy exchanges will ask you to verify your identity. This usually means uploading an ID and proof of where you live. The process is usually pretty simple, but it can take a day or two for the platforms to approve everything.

Step 5: Before making any trades, spend some time exploring the exchange. Look at its features, educational materials, and helpful tools like price alerts to keep track of changes.

And there you have it! That’s the simple process of choosing a crypto exchange and setting up an account.

Essential Tips for Beginners

By now, you should have a pretty good idea of how to choose a crypto exchange that fits your needs. You've set up your account and are eager to get started. But before you move your money and buy your first cryptocurrency, I'd like to share some helpful tips to help you along the way:

• Stick with popular coins: As a beginner, start with popular cryptocurrencies like Bitcoin or Ethereum. These are generally more stable and carry less risk than smaller, more volatile altcoins.
• Start small: There’s no rush to spend much money right from the start. Begin with a small amount to get a feel for how it all works and build your confidence along the way.
• Have clear goals: Think about why you want to buy cryptocurrency. Are you looking to learn more, save for the future, or just for the hype? Having clear goals can keep you focused and help guide your decisions.
• Prioritize security: Always enable two-factor authentication and create a strong, unique password. For extra safety, consider moving your funds to a secure hardware wallet, like Ledger Flex, instead of leaving them on an exchange.
• Keep learning: The crypto world moves fast, so staying informed is key. Follow reliable news outlets, explore new tools, and continue building your knowledge base as you go.

With these tips in mind, you’re ready to dive into the dynamic crypto landscape. Just remember, it's a long-term journey, so take your time and enjoy the process.

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Conclusions

Figuring out how to choose a crypto exchange as a newcomer can feel overwhelming at first, yet it can be simpler than you think.

Start by focusing on the basics: make sure it has robust security, high liquidity, and reasonable fees. Then, prioritize a platform with user-friendly interfaces, responsive customer support, and plenty of educational resources to help you along the way.

That’s why big names like Bybit, Kraken, and Binance are excellent starting points. They check all the essential boxes, providing a beginner-friendly trading environment to help you grow. Once you’ve gained confidence and trading experience, you can branch out to explore more niche platforms that focus on specific strategies or unique types of assets.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Wątorek M., Drożdż S., Kwapień J., Minati L., Oświęcimka P., Stanuszek M.: 'Multiscale characteristics of the emerging global cryptocurrency market';

2. Aspris A., Foley S., Svec J., Wang L.: 'Decentralized exchanges: The “wild west” of cryptocurrency trading'.