How To Pick the Right Crypto Exchange to Invest in the ICOs

The Right Crypto Exchange
The Right Crypto Exchange

ICO facilitates blockchain-based startups to get funds. In exchange for their money, investors/backers receive tokens from the project they support. 

These tokens can be sold and traded even before the official release date of the coin on exchanges and being mined. In this way, the tokens serve as a form of profit-sharing based on the project’s success. It is vital to choose reliable exchanges like Swyftx for ICOs, as the Swyftx features make crypto trading easy.

Why Do You Need an Exchange for ICO?

ICO, like any other cryptocurrency project, cannot be liquidated or sold directly. Firstly, it must be listed on a cryptocurrency exchange to have a price and be traded against bitcoin (and sometimes also fiat currencies). 

However, the listing process is not easy at all. There are too many ICOs available these days, so exchanges are picky about which coins they accept.

Also, crypto exchanges don’t buy tokens themselves. They only do that if they’re sure that there is a market for it (i.e., people want to trade the coin). If they don’t see an interest, even if your project is excellent, you will have to list the crypto on multiple exchanges. 

Other issues include: very low liquidity or complicated procedures, different fees and policies based on geographic location, etc.

How to Choose the Right Exchange

How to make it easier to choose the proper exchange after your ICO? Reputed agencies like Swyftx have a unique approach and Swyftx features make the ICO process easy. The table below presents some different factors that may influence your decision of which cryptocurrency exchange to use:\

Liquidity

You need an exchange with enough market volume so that you can sell your tokens quickly without having them stuck in the order book for weeks. 

Fees

Some crypto exchanges charge high fees or commissions, while others don’t even require you to pay anything at all. Some of them take fixed amounts of money, while some take a percentage of the total sum you’ve traded. 

The fee policy also depends on the type of fiat currencies available for deposit, withdrawal, and trading. For example, the exchange with a high fee policy could be good if your target audience is in a country where local currency is supported.

Deposit/Withdrawal Options

It’s better to choose an exchange that has several popular ways of depositing and withdrawing fiat currencies. Local regulations or high bank fees limit some exchanges, so their deposit/withdrawal options may be limited too.

Security

This factor is critical for obvious reasons – you don’t want to get hacked and lose your money. A promising sign that your exchange is trustworthy is if it’s listed on a famous reviews website. 

Also, you should check the customer reviews and feedback from other users considering their previous experiences with a given portal.

Exchange Rate Fluctuation

The exchange rate may vary for different pairs. Some exchanges are transparent about their fees. They charge a fixed percentage of each trade, while others make you pay the difference between the current price and the one at which your coin was sold or bought. 

Supported Countries

There’s no point in getting your crypto listed on a specific exchange if it doesn’t have users from your target audience. 

Such exchanges only work with local fiat currencies, so you will have to spend additional time and money internationalising the project. You can also consider using multiple exchanges at once to cover a larger market.

Ease of Use

It’s not a good idea to spend time and money on an exchange that will be difficult to use from your side, as well as for those who want to trade the coin once it gets listed there. In other words, you should check if the platform has a user-friendly interface, informative web design, and a reliable customer support team.

Final Thoughts

There are a couple of different factors standing in the way of getting your project listed on an exchange. Some of them work with fiat currencies, while others only accept cryptocurrencies as a payment method. 

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