Questions to Ask When Selecting a Bitcoin Exchange

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Are you having difficulties selecting a Bitcoin exchange? If yes, here are questions to ask when choosing your crypto exchange.

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Most people know how to purchase Bitcoin. And this is a vital step when getting started with this virtual currency. However, knowing where to buy or sell Bitcoin is another thing. Essentially, you should know the best Bitcoin exchange to use when trading or investing in this virtual currency. When buying Bitcoin, you invest your hard-earned money. Therefore, choosing the best crypto exchange is essential. This guide highlights questions and answers to ask when selecting a Bitcoin exchange.

 

Where is the Bitcoin Exchange?

Before registering and trading cryptocurrencies with an exchange, research or inquire about its location, that’s because laws that regulate Bitcoin use, trading, and investments vary from one place to another. Therefore, most experts recommend using a Bitcoin exchange within your country. Nevertheless, the essential thing is to read and understand the terms and conditions of a Bitcoin exchange before using it.

 

How Can You Purchase Bitcoins?

If you opt to use a Bitcoin exchange like BitIQ, find out how to purchase Bitcoins. For instance, does the platform allow users to pay with cash, wire transfer, PayPal, or credit cards? An ideal crypto exchange should enable you to use more payment options to enhance your convenience. Also, consider privacy levels when choosing your payment methods. That’s because methods like credit cards might not improve your privacy when compared to cash transactions.

 

What are the Exchange Fees?

Choose a Bitcoin exchange that charges reasonable fees. Perhaps, you can compare different platforms first to avoid a crypto exchange that charges exorbitant fees. Costs usually vary from one Bitcoin exchange to another, and they can increase over time. What’s more, the crypto trading system can charge extra fees apart from the transaction fees.

 

How Transparent is the Bitcoin Exchange?

A fully transparent exchange publishes addresses for cold storage or audit information explaining how you can verify Bitcoin reserves. And this provides an ideal way for the platform to prove to users that it has liquidity. That means the crypto exchange can cover all crypto sales. Also, it shows that the company is not running only a fraction of the crypto exchange.

 

How Fast Do You Get Bitcoins after buying them?

Although this can differ from one person to another, it’s crucial to know the duration you will wait to get Bitcoins after purchasing them. Also, check whether the exchange provides “locked-in” pricing. That means the purchase price is the same you will pay even when you go for some days without getting your Bitcoins.

 

How Reputable is the Crypto Exchange?

You can only answer this question by researching the platform you want to use or asking your peers. Therefore, read customer reviews and search online feedback about it. Some online forums can also provide information about the crypto exchange you have in mind. If you can’t get any information about the Bitcoin exchange online, talk to peers that may have used it.

 

What Security Measures Does the Bitcoin Exchange Have in Place?

Make sure that a crypto exchange is safe before signing up and using it. For instance, use a crypto exchange with HTTPS in its URL. Also, find out if the platform allows you to use two-factor authentication. Such measures can enhance your safety when using the crypto exchange to trade or invest in Bitcoin.

 

Does the Crypto Exchange Ensure Complete Anonymity?

It’s almost impossible to remain completely anonymous. However, inquire whether the crypto exchange you use follows Anti-Money Laundering and Know Your Customer laws. If the platform does, you will provide some of your identity information before purchasing Bitcoin.

Ask such questions when selecting your Bitcoin exchange. Your answers should guide your choice and help you get the best platform.

 

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