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A crypto exchange allows you to buy, sell and trade digital assets and cryptocurrency. They are simply platforms that allow you to trade all sorts of crypto tokens and coins. There are a few things you need to consider before choosing an exchange. Because a bad choice may lead to you losing your investments. Likewise, crypto exchanges with limited coin support can reduce your chances of making more money.

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There are many exchanges available in Nigeria. Hence choosing a good exchange among them might prove to be a difficult task, especially for crypto beginners. This article points out factors you should check out before using anyone. They include:

Supported coins: Anyone who wants to buy or sell crypto should know the ones to buy. This is because different exchanges support different cryptocurrencies. All of them are not one size fits all. They do not support all coins. So you must make sure the exchange you choose supports the coins you want to trade, as a bare minimum. And supports several others in case you want to stretch your investments.

User interface: If you are new to crypto, their platforms may take a while to get known. This is why you should choose one with a user-friendly interface. Not only is it simple, but it will make trading faster for you. When you become more experienced, you can choose exchanges with more complex interfaces that offer more options.

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Transactions Fees: Exchanges generally help you make money while making theirs as well. That’s how they can maintain the platform for your use. All you need to do is compare transaction fees to find the one that suits you. If an exchange charges lower fees, it means you will have better value for your investments. But if their fees are high, you can pay a lot for your gains.

Regulation: Under the Securities Exchange Commission’s new rules, all crypto exchanges providing service to Nigerians must have a permit. This permit is the virtual asset service provider (VASP) license and other relevant category licenses. For instance, an exchange would need a digital asset exchange license in addition to the VASP permit. This ensures that your money is safe. Whatever you do, make sure that the exchange you choose has a permit and that you are comfortable with its regulatory status. The more regulated an exchange is, the more secure your funds will be.

Deposit & withdrawal options: Every Exchange offers its users different deposit and withdrawal options. Now that crypto transactions are banned in Nigeria, you can’t process transactions with your account directly. You have to make payments through peer-to-peer transactions or other methods. Keep that in mind.

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Account security: It pains to lose money no matter how insignificant the amount is. So one of the most important factors to consider when choosing an exchange is how secure your account will be. Exchanges that offer multiple layers of security, such as two-factor authentication should be your best bet.

Customer support: A good test you should perform before choosing an exchange is contacting their customer service. Call, chat or email them asking about their services. How they reply will tell you what they will do if you run into problems with your account. In short, only consider exchanges that offer live chat, email, and phone support so you can get help quickly when you need them.

Bottom line

No exchange is a size fits all. It’s only up to you to identify the various features that matter to you and compare it with various exchanges. There must be one that closely fits with what you need.

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This article was first published on 27th August 2022


I am an accomplished content creator and recently delved into technical writing. I enjoy using my skills to contribute to the exciting technological advances and create awareness of evolving technological trends in Nigeria.

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