Whether you want to trade in Bitcoin, Ethereum, or any other cryptocurrency, you will need a trading platform like swyftx.io/ca to go for it. There are many factors that you need to consider while choosing the right cryptocurrency platform. You can research the exchange platforms online and then, compare each of them on different criteria. Below are listed some indicators that you can use to compare the cryptocurrency exchanges in Canada.
How to Compare the Top Cryptocurrency Exchanges in Canada?
Tools and Features
As a new trader, you might feel confused with the complicated processes of some exchanges. However, these features will not bother you much if you have some experience of using these platforms. So, what you need entirely depends upon your skill and knowledge. Look for a platform that will suit your needs and provides you with the trading tools you can work with.
Few platforms offer you to trade anonymously. You can choose them if you like to maintain your privacy. But most reputed platforms will ask you to verify your account before trading. And it’s necessary, too.
If a platform asks for account verification, it will follow all the mandated rules and regulations. It will require you to provide your details like name, email address, contact number, proof of address and proof of ID. Check the credibility of the platform before giving out such critical information.
The security feature is a crucial aspect while comparing cryptocurrency platforms. Trading exchange is most vulnerable to hacking, and you can very easily lose your money. Be sure that you look for a platform that is supported by 2-factor authentication.
You need to check if your emails or transactions will be encrypted or not. Is there an account verification process in place? Where will your wallets be stored? Will you receive any notifications about the activities on your account?
Some platforms provide more than one type of trading. So, this aspect depends on the kind of trade you want to do on the exchange. These options can be fiat to crypto trading, crypto to crypto trading, or both.
You may use your credit card, PayPal, bank, account or debit card to purchase cryptocurrency in fiat to crypto trading. In case you want to exchange your ETH for BTC, you will need crypto-to-crypto trading.
It will help if you consider the reputation of the platform while comparing. How do other traders see it? Do they find it reliable and safe? Try to go through all the reviews, negative and positive to get a clear idea of how well the platform does. Go for an exchange that has been there in the market for a good time.
You must look for a platform that you will be able to access from your laptop or mobile. The desktop version has been there for a long time. But it would help if you looked for a platform that offers mobile trading. Now, when most of us have a smartphone, it’s better to look for a trading exchange that allows for mobile trading. It will ensure trading on the go.
Consider the charges that you will pay as fees for deposits, withdrawals, and trading. The fees might differ from platform to platform. So, check and compare the charges carefully.
Some platforms might charge you differently for using different modes of payment. Look for platforms that offer discounts for paying in your local currency or on higher trade volumes.
There are trading exchanges that take too long to process the transactions. Network lag and slow processing can put them on hold for even weeks. Check the processing time of transactions and choose a platform that meets your expected time of processing. Some platforms might charge you more for faster processing. The processing should be quick. Otherwise, you may miss out on good opportunities.
A platform that has limited liquidity will slow down the speed of trading coins. If the exchange has high-liquidity, it would be able to handle high trading volumes. Also, check if the exchange has any limits on selling or buying in a single day. The minimum and maximum limits put up by the exchanges are worth comparing too.
Overall, these features can help you in finding the right cryptocurrency exchange. Many countries like Canada, Australia have regulated their crypto market. Since June 2020, all the reputed cryptocurrency exchanges in Canada are registered with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC). It assures their adherence to obligations related to money laundering and terror financing.