Knowing
how to buy Bitcoin is a first step into the digital currency world. Then, the
important question arises – how to choose the right cryptocurrency exchange? Many
questions need to be answered before a new trader can be sure that he made a
good choice.
Depending
on the needs, country, trading volume, security and many other factors the user
can choose an exchange that’ll suit his requirements.
So, what
precisely a trader needs to know in order to make the best possible choice?
Check our list below:
Information
about the exchange
Basic
information such as the location of the exchange, the name of the founder and
the market they focus on can be the first step for choosing the Bitcoin
exchange.
Bitcoin is
still a relatively unregulated currency in many countries, but things are
changing. In a couple of years, the situation might look much better than
today. As the utilization of Bitcoin rises, the governments are seeking to get
a degree of control over the digital currency transactions. Money laundering,
illegal drug smuggling and terrorism are just some of the reasons why
authorities are looking to get some control and monitor the Bitcoin network.
Because of
all of these things, it’s important to know the geographic location of a BTC
exchange before making the decision. The location of the exchange dictates the
laws it will have to comply with. The majority of the countries doesn’t have
any laws related to digital currency, but if and when they start to do it, it
could significantly affect user’s ability to use and trade Bitcoin.
For
example, China is a bad choice for Western traders because there are additional
fees, it’s hard to get verified, and English support often isn’t good enough.
Knowing
more about the founders of the exchange can also be a great lead about the
exchange reputation. If the founders are anonymous and haven’t provided a proof
of reserve like in the case of BTC-e, that’s a good sign to be careful.
·
Supported currencies and liquidity
Before
choosing an exchange, of course, it’s important to check does it support the
trading pairs that suit the user needs.
This is
especially the case with some altcoins which are offered on only one or two
trading platforms.
So Choose the Cryptocurrency Exchanges
that offer the highest number of trading pairs:
After
finding the platform with desired trading pairs, the next thing is to check the
exchange’s liquidity for that pair. If the liquidity is good – meaning that
there’s a high trading volume – then the trades will be easier and faster to
complete. This also means that the traders are able to sell the currency
without the price being significantly affected. The easiest way to check the
trading volume of the exchange is by checking it on the websites like Bitcoincharts.com.
Exchanges with the highest liquidity:
·
Trading Fees
The
trading of Bitcoins (and all other coins) costs money – that’s a reason for
exchanges to stay in business. Usually, exchanges charge a small percentage of
the amount traded. As far as we were able to see, the percentage charged is
always lower than 1 percent, typically being around 0.2 percent.
Usually,
there’s a sliding scale which decreases the fee percentage as the monthly
trading volume of the user rises. This is the way exchanges make a lot of
money, so it’s not likely this fee model is going to change.
Exchanges with the lowest fees:
·
Trading Options
Depending
on the needs, users may want to have access to certain order types or margin
trading. Advanced users are often looking for futures and derivates trading, so
keep that in mind as well.
The exchanges with the highest number of
trading options:
·
Ease of Use
A simple
interface which is easy to use and a quick loading is something everyone loves.
But support for mobile devices is even more important. Users who are planning
to make the trades on the move should double check does the exchange has a
responsive website or Android and iOS apps means
Exchanges with the best interface and
mobile support:
·
Customer Support
This can
be one crucial factor, especially for the new traders. Many things could go
wrong, and having a reliable support team can save a lot of nerves and money.
Exchanges with the best support:
·
User Experience
When
selecting an exchange, it’s good to know what the most common complaints about
it are. By checking Bitcoin forums, users can find many complaints on different
trading platforms. If the preferred exchange has a lot of complaints about
locking people out of their accounts, maybe it’s a good idea to take a look at
other options.
Exchanges with the lowest number of
complaints online:
·
Security
Unfortunately,
many Bitcoin exchanges are at the constant risk of hacker’s attacks. The
digital currencies are volatile, and an attack can cause the price drop, which
can bring profits to some malicious users.
A safe trading platform needs to have:
§ Two-factor authentication
§ Cold storage for the majority of funds
§ PGP encrypted emails
§ Email and SMS alerts
§ 24/7 wallet monitoring
§ Proof of reserve
If all of
these conditions are met, the exchange is probably safe for keeping the funds
in the wallet. Still, we advise that only the amounts used for trading should
be kept on the exchange – the rest should be sent to the user’s private wallet.
Exchanges with the best security:
·
Conclusion
Many
factors are vital when it comes to selecting a good exchange. In short, here’s
what to look for:
§ Good location
§ Supported coins
§ High Liquidity
§ Low Fees
§ Numerous trading options
§ Mobile support
§ Good user experience
§ Excellent security
And that’s
it. These are the most important parameters for selecting the right Bitcoinexchange.
Thank you for sharing this information.
ReplyDeleteCoinOrbisCap is the best user-friendly financial app who take digital currency seriously. Gives you quick access to crypto prices, market cap, coin chart, crypto news on over 1500 currencies.
Download here for FREE!!
Thank you for sharing this information.
ReplyDeleteCoinOrbisCap is the best user-friendly financial app who take digital currency seriously. Gives you quick access to crypto prices, market cap, coin chart, crypto news on over 1500 currencies.
Download here for FREE!!
Thank you for sharing this information.
ReplyDeleteCoinOrbisCap is the best user-friendly financial app who take digital currency seriously. Gives you quick access to crypto prices, market cap, coin chart, crypto news on over 1500 currencies.
Download here for FREE!!
ReplyDeleteBE SMART AND BECOME RICH IN LESS THAN 3 DAYS....It all depends on how fast you can be to get the new PROGRAMMED blank ATM card that is capable of hacking into any ATM machine, anywhere in the world. I got to know about this BLANK ATM CARD when I was searching for job online about a month ago.. It has really changed my life for good and now I can say I'm rich and I can never be poor again. The least money I get in a month with it is about $50,000.(fifty thousand USD). Everyday I keep pumping money into my account. Though it is illegal, there is no risk of being caught, because it has been programmed in such a way that it is not traceable, it also has a technique that makes it impossible for the CCTV's to detect you.. For details on how to get yours today,email the hackers on: harrybrownn59@gmail.com Tell your loved ones too, and start to live large. That's the simple testimony of how my life changed for good... Love you all... The email address again is harrybrownn59@gmail.com