Digital Currency Exchange Facts You Should Know
Knowing how to trade and digital currency exchange strategies is an essential first step in getting started with the digital currency. However, knowing which cryptocurrency exchange to choose can be one of the most important first steps. Since we are focusing on how to choose the best Bitcoin exchange and Bitcoin investment, your funds into Bitcoin and the exchange from where you buy them, making sure you are choosing the right one becomes critical.
This article will put you through some of the top items in our checklist we recommend reviewing before making the decision to select a Bitcoin exchange. Remember, these are just suggestions to help you make the right decision. In the end, things can always change based on the exchange and the market. But doing your homework first is highly encouraged.
The Country your Digital Currency Exchange is Located
Knowing your country and where the exchange is based is very important, as laws and regulations can vary from country to country. Buying Bitcoin in your home country is typically recommended. For a full list of exchange country locations, go to Buy Bitcoin and from the drop-down menu, select your country to start. if the digital currency exchange is being based in your home country or not, the exchange may accept multiple currencies. Make sure to check the fine print; usually exchanges post in their terms of service what currencies they do and do not accept.
How to Buy Bitcoin for your Digital Currency Exchange
A digital currency exchange that is fully transparent will publish cold storage addresses or audit information on how to verify their Bitcoin reserves. Bitcoin audits are a good way for an exchange to prove to customers that they have liquidity and can cover all Bitcoin exchange sales, and aren’t running a fractional exchange.
Factors to be Considered during your Digital Currency Exchange
How Quickly will you get the Bitcoins after Purchase: This may vary person-to-person, but it’s good to know how long before the Bitcoin will be sent to you after purchase. Make sure to also check if the exchange offers ‘locked in’ pricing; meaning that the price you buy at, is the price you will be charged for even if the bitcoins take a few days to arrive.
Is Anonymity Important to you: Staying completely anonymous is difficult unless you buy locally from someone in cash through a person-to-person marketplace. Make sure to check if the exchange follows Know Your Customer (KYC) and Anti-Money Laundering (AML) laws in your country. If they do, then some identity information will have to be sent to them before buying.
Your Security is Paramount: Knowing the exchange is secure is very important and shouldn’t be overlooked. Is the exchange site HTTPS or HTTP? For it to have a secure protocol it must be HTTPS. Does the exchange offer secure logins along with two-factor authentication (2FA)? These are just a couple of things to think about before selecting an exchange.
You must try as much as possible to avoid fraud, becoming a victim should be a high priority. This means avoiding any scam exchanges that are designed to steal from you. Please read our guide to avoiding Bitcoin fraud for more details.
Culled from Bitcoin.com | How to Choose the Best Bitcoin Exchange