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Anyone who is planning to get started with cryptocurrency should know how to purchase Bitcoin and which exchange to choose. If you are investing your funds in Bitcoin and the exchange from where you purchase the currency, it is vital not to make the wrong choice. Before deciding which Bitcoin exchange to choose, the tips below can help guide you through the selection process:
Learn about their Reputation
Because exchanges operate online, you can easily look for customer reviews to get feedback about their services. You can check out online forums where people share their experiences with exchanges and other related services they used. If you want to know more, ask some of your peers if they have tried using the exchange you are considering.
Consider their Location
It’s important to know the country the exchange is based in because laws and regulations vary by countries. Typically, it is recommended to buy Bitcoin from en exchange within your jurisdiction. This way you can go after them when issues arise. Check what currencies the exchange and what they don’t. You can find this information in their terms of service.
Ask about their Fees
Reputable exchanges charge a reasonable fee for their services. But, these fees vary by exchanges. Some exchanges may even charge extra fees on top of Bitcoin transaction fees. Visit Paychain.ca and ask about their fees.
Take their Order Volume into Account
The majority of exchanges that have a decent customer base will let the public access their order book. This book is a list of buy and sell orders they offer. An exchange that has a higher volume order book may have liquidity. Exchanges that do not publish this book are not legit
Pick a Transparent Exchange
Fully transparent exchanges will publish cold storage addresses or audit information on ways to verify their Bitcoin reserves. The availability of Bitcoin audits lets them prove their liquidity to customers and their ability to cover all Bitcoin exchange sales.
Ask about Security Measures
You will want to buy Bitcoin only from a secure exchange. Their website address needs to start with HTTPS. Also, they should provide secure logins together with two-factor authentication. Keep in mind that an unsecured website can get your identity information stolen.
Consider Anonymity
It is not easy to stay completely anonymous unless you purchase locally from somebody in cash through a person-to-person marketplace. Check if the exchange follows Know Your Customer (KYC) and Anti-Money Laundering laws in your country.
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