Factors to Consider When Looking for a Bitcoin Exchange
With the increasing popularity of cryptocurrency, bitcoin exchange services are popping up daily. If you are looking for such a service, it is important not to approach the same blindly. This is because only a handful of the many available services are dependable. You should do your homework well to avoid falling prey to dishonest providers. Seeking the help of knowledgeable friends and relatives would also be a wise decision. How do you approach choosing a digital currency exchange?
Location is among the most important things to consider. It is true that such bitcoin exchange services are available all over the world. However, since different countries have rules and restrictions regarding transacting using cryptocurrency, it is important not to choose just any exchange. Familiarizing yourself with those restrictions helps a trader know what to expect. If you are a trader based in the West, an exchange located in China might not be a good choice for you. The fees are likely to be higher in China, the verification more demanding, and proper English support difficult.
You should consider the reputation of a service before choosing it. Assuming that any service that claims to be reliable is indeed reliable would be a bad decision. It is advisable to research the founders prior to making a decision. Consider what past and existing traders say about the service. Consider what independent reviewers say about the service Chat forums would be dependable sources of information.
Security is very important. An exchange could be dependable. However, if there is no proper investor protection, choosing them would be a bad decision. Technology is advancing rapidly, which makes it a challenge keeping hackers at bay. Has your choice exchange been hacked before? If yes, get to know whether they have strengthened their defenses and how. Any service that requires traders to store everything on the exchange are suspect.
Consider ease of depositing, withdrawing, and trading fees. Never assume that they support the method you prefer regarding converting fiat. It is important to know the fees, limits, and verification all funding and withdrawal options attract. This helps you know exactly what to expect. You should know that funding and withdrawing fees differ from trading fees. Get to know how much each trade would cost you. Your choice exchange ought to be upfront concerning fees. Make certain that there would be no hidden charges.
Consider client support and ease of use. The trading platform should be effortless to manipulate. Ensure that it is quick loading, too. In case you prefer trading on the move, you have to be sure that the platform does not choose a platform that would restrict you to using a desktop. Ensure that you would always enjoy a high level of client support.