5 Factors to Consider When Choosing a Crypto Exchange

Guest Author blog September 28, 2020

5 Factors to Consider When Choosing a Crypto Exchange

Online exchanges arguably provide the most popular way of buying and selling Bitcoin and other cryptocurrencies. Like everything though, there are good crypto exchanges, and there are bad ones. You want to ensure you work with a reputable exchange that doesn’t charge a fortune for a transaction and prioritizes your satisfaction and safety. These tips will help you make a more guided crypto exchange choice:

1. Geographical scope

The reason some of the world’s most reputable exchanges don’t serve the entire Bitcoin world is that they are only available to clients in certain regions. Some of the geographically limited options do not specify it in their terms and will let you create an account and even attempt a transaction before hitting you with a message telling you it’s not possible. Ensure your desired exchange operates in your country before committing. 

2. Ease of use

Various platforms offer different crypto purchase methods. Typically, you will be provided with a catalog of deposit methods, including bank transfer, crypto-to-crypto, debit cards, credit cards, and Paypal. Don’t subscribe to a new payment method just to use an online exchange. There is a platform out there that accepts your preferred method; you just need to find it.

3. Ease of verification

Knowing how to buy Bitcoin is not where the initial struggle of using online exchanges ends. Verification has proven to be quite the task on most platforms, and many novices have lost their interest at this very stage.

This should go without saying, but signing up should be the easiest and most straightforward part. Exchanges that have unnecessarily intricate registration processes and ask for too much personal information should be avoided.

4. The number of supported cryptocurrencies

Ethereum, Bitcoin, and other top cryptocurrencies are offered in virtually all exchanges, but what if you are interested in the other less popular options? Just like an exchange shouldn’t compel you to sign up to Paypal or some other payment method that you aren’t already using, it also shouldn’t coerce you to buy what you don’t want. There are about 1600 cryptocurrencies out there, and your effort to find the perfect one should not be compromised because of a platform’s limitations.

5. Security, privacy, and support

In the digital age where hacking is growing commonplace by the day, security and privacy should carry the most weight in your priority list. Just so you know, the centralized exchanges are the biggest targets for hackers, not because they are easier to breach, but because they are more rewarding. Decentralized exchanges do not have many of those vulnerability-laded go-betweens and instead connect users directly. That said, these exchanges offer lower liquidity compared to their centralized counterparts, which essentially reduces this into an affair of setting your priorities right and taking the bad with the good.

Conclusion

The world needs a unified cryptocurrency ecosystem now more than ever. If you want to be an early adopter and launch yourself into the world of buying and selling crypto, this guide will help you find the perfect online exchange.

Author: Guest Author
This author could be anybody, but he/she is not a member of staff coingape.com and opinions in the article are solely of the guest writer and do not reflect Coingape's view.
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