Bitcoin
Best UK Crypto Exchanges for June 2024 – Forbes Advisor UK
Choosing a suitable crypto exchange can be a complicated process. But first of all, the investor must look for a safe exchange. As encryption has grown in popularity, it has increasingly become a target for hackers. And many major exchanges were hacked worth tens of millions.
Although exchanges often reimburse those whose coins are stolen through their insurance, an investor probably wants to avoid being in that position to begin with. This is why it is important to potentially minimize this risk and only invest in reputable exchanges.
An investor can further minimize their security risk by spreading their crypto purchases across multiple exchanges or by moving their crypto from an exchange’s default wallet to their own secure “cold” wallet that is not automatically connected to the Internet (and therefore must be much harder to hack). Although they need to keep their password up to date or they could lose access to encryption forever. It is also advisable to be aware of withdrawal fees when transferring crypto from an exchange. They often vary depending on the type of currency.
Also consider the cryptocurrencies available on a given exchange. An investor may be perfectly fine using a crypto exchange with just one currency if it is the only currency he wants.
But the simple availability of currencies tends not to be enough if there are no negotiations. Ideally, an investor might want to see hundreds of millions of pounds worth of daily crypto trading happening to ensure they have enough liquidity so they can easily trade their coins and sterling whenever they want or need to.
If an investor is an advanced crypto trader, they may want to make sure that their preferred exchange offers trading types like limit orders, which can potentially prevent slippage by setting a fixed price and the margin they want. Keep in mind that the types of trades involving the latter are still evolving, so offerings from different exchanges may vary over time.
For those who are just starting to buy cryptocurrencies, it may be wise to look for a more user-friendly platform with full educational resources to help them understand this complex and rapidly developing commodity. However, any ease of use should not be confused as there are fewer risks involved.
And don’t forget the fees. An investor may be okay with paying a premium for a simpler interface when they are still learning the ropes, but higher fees hurt their eventual returns. Many high-frequency traders especially want to reduce costs. Finally, don’t assume that a scholarship is available in the UK just because its website is accessible.