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 few of them are available. You should do your homework well to avoid falling prey to dishonest providers. Asking for help would be a wise move. How do you approach selecting such a service?
Consider location when choosing an exchange. Bitcoin exchanges happen in most countries in the world. However, since different countries have rules and restrictions regarding transacting using cryptocurrency, it is important not to choose just any exchange. Knowing the laws that you must comply with when trading would help you know what to expect. China, for instance, would be a bad choice if you are a Western trader. This is because getting verified would be harder, the fees are higher, and English support is not always good.
The reputation of a service is a primary factor to consider. 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 the types of reviews the exchange has from past traders. Consider what third-party reviewers say about the exchange in question. In case such reviews are not available, it is important to join relevant chat forums to know the experience individuals who have used the exchange have had.
Security is very important. It could be that an exchange is reliable. If your protection is not warranted, selecting them would be a bad decision. Technology is evolving swiftly, which makes it a challenge warding off hackers. Has your choice exchange been hacked before? If yes, get to know whether they have strengthened their defenses and how. Beware of services that require you to store your money on the exchange.
Consider ease of depositing, withdrawing, and trading fees. Make certain they support your choice method of converting fiat. If your choice service offers many funding and withdrawal methods, inquire regarding verification, limits, and fees. This would help you know what to expect. You should know that funding and withdrawing fees differ from trading fees. You should know how much you would be paying for each trade. Your choice exchange ought to be upfront concerning fees. Beware of services with hidden fees.
Ease of use and client support are factors to consider. Their platform ought to be easy to manipulate. It should also be quick loading whether it is downloadable or web-based. If you would be using the platform away from home, choose a service with that in mind. Ensure that you would always enjoy a high level of client support.