The former Palace midfielder was brought in from Newcastle United earlier this month, following Neil Warnock's sacking in late December.
Pardew has already overseen a 4-0 victory over non-League Dover Athletic in the FA Cup and will take charge of his first league game at the helm against Tottenham on Saturday.
Despite Newcastle and third-bottom Palace being separated by eight positions and 10 points in the table, Pardew believes a new challenge was right and dismissed any notion that St James' Park chairman Mike Ashley was set to sell the club.
"I've not heard that, it's just rumours. It was simple equation really. Crystal Palace wanted me and met my clause, Newcastle told me and I had a choice whether to stay or go," he explained.
"I decided this new challenge would be a good one for me. I think I'm a good fit for them.
"I understand the football community having concerns over why that happened, for me it was the right time and it's the right time for Newcastle.
"I think four years under that type of monetary situation when they're trying to push, it's difficult.
"I've left a good club, with a good base of young players. Some fantastic professionals, which I'll miss, we've pulled above our weight at times.
"I had tremendous support and I want to thank all Geordies for their support. You can't help but grow as a manager there.
"It would have been easier to stay at Newcastle and finish in the top 10 but I chose this challenge."
Pardew's immediate task will not be helped by the absences of Mile Jedinak and Yannick Bolasie, who are on international duty at the Asian Cup and the Africa Cup of Nations respectively.
The Palace boss feels signings in January are necessary for the club to pull clear of the drop zone.
"I can't say anything about the financial side of the game because it's unfair on any club we're talking to," he said when pressed on an apparent interest in Swansea City striker Bafetimbi Gomis.
"The board are keen to try bring in a player or two. We have to wait and see. It's very complicated in the Premier League to secure a player, especially a striker.
"We're going to need some funding because we need new players, [chairman Steve Parrish] gave me assurances he would do his very best to do that."
