5 Factors to Look at Before Choosing a Bitcoin Exchange

The process of dabbling in bitcoin starts from choosing the exchange. But the whole journey of bitcoin trading can be more fruitful if you use a good bitcoin exchange. However, there are several options in the exchanges, so choosing the ideal one requires time and effort.

The Bitcoin exchanges are the ones that store bitcoin and allow traders to buy and sell. They act as an intermediary between buyers and sellers of bitcoin. With the help of a good exchange that has an easy-to-use website, the whole procedure of trading bitcoin becomes much more accessible to everyone.

But not all exchanges are made for you to use. There is an increase in security breaches and fraud platforms, so you need to watch out for them. The investor needs to take many things into account, from the reputation to the platform’s trading fees, before choosing a bitcoin exchange. 5 main key factors to look for before choosing a crypto exchange are listed below.

1. The reputation of the website!

Reputation matters a lot. Whether you are looking for a store to buy clothes or you are going to handle your money in bitcoin. The reputation of the platform plays a big role. Some people do not consider the reputation of the platform and later they face significant problems because of it.

You should remember that the reputable bitcoin exchanges can provide you with the best services for a limited period. It’s okay for anyone to red flag unknown bitcoin exchanges because you don’t know what kind of services they offer.

A well-known exchange has a higher trading volume because the customers are in large numbers. So reputation is an important factor you need to check out in the bitcoin exchange before choosing it.

2. Security for the Bitcoin exchange!

An investor must thoroughly check the safety and security measures that the exchange has taken on both mobile and online. It must not be overlooked as digital tokens are susceptible to theft and hacking. You need security at every step of your bitcoin investment journey.

You need to pick the exchange platform with the best security features to offer its customers. The best bitcoin exchanges also have the extra layers of codes required to be authenticated when buying or selling. You may not know, but exchange security is critical and should not be ignored.

You should not use any platform with a long history of cyber attacks or fraud issues. Many people don’t know, but most exchanges offer basic security features like two-factor authentication. Still, you need to look out for additional security features.

3. Compliance with Regulations

Anonymity is an integral part of your cryptocurrency, but everyone is treated equally before the law. An exchange must be aware of its buyer in order to facilitate communication.

Global “know your customer” laws make it mandatory to upload ID proof of your name and address before you can take action. AML and Know Your Customer (KYC) regulations must be followed by any bitcoin exchange.

You must always go to a bitcoin exchange that follows the country’s regulations. Cause in an event which FTX crashwhich will help you prove ownership of locked funds.

4. Payment methods for exchange!

To start trading bitcoin on the exchange platform, you need to deposit money into the account. A bitcoin exchange offers different payment methods to its users, where you can choose who you want.

Before choosing a bitcoin exchange, consider the payment methods offered by the exchange platform. A reputable exchange provides:

• Alternatives for online banking.
• Debit or credit card.
• UPI payment.
• Other digital wallets.

If you do not check it beforehand, you may not be able to deposit money on the exchange.

5. Exchange fees!

No bitcoin exchange allows you to trade for free. It will always charge you fees to make the trade, whether you are buying or selling. There is no standard fee for the exchanges. Each exchange has its own fee structure from which they make money.

You may not know, but the exchange charges a fee for each transaction. You should consider the fee charged by the bitcoin exchange beforehand. A platform that does not provide transparent information about its fees should be avoided.

You should only choose the platform that has the best fee structure. It should be reasonable in amount so that you don’t have to compromise your losses.

Conclusion!

You should consider these factors while looking for a bitcoin exchange. Of course, all of these exchange platforms have features, but these are the most important considerations you should make.

Also read: Crypto Exchange Comparison: Coinbase vs Binance vs Bitfinex