Bitcoin is a decentralized currency, meaning it isn’t controlled by any government or agency. It has gained popularity as an alternative to traditional currencies. Many companies accept it as a mode of payment, and some people trade it to make cash.
If you want to buy bitcoin, it’s best to do so from a bitcoin exchange. However, not all exchanges are the same — some aren’t safe. So you have to be careful when buying bitcoin from an exchange. Here are the top five factors you should consider when choosing an exchange to buy bitcoin.
1. Legitimacy And Security
Before you sign up for any bitcoin trading or exchange platform, make sure it is legitimate and authentic. That’s the only way you can be sure your money is safe.
Because bitcoin is a decentralized cryptocurrency, it’s not regulated by any bank, agency or government. This means it is open to fraudsters who can set up fake exchanges to take advantage of unsuspecting buyers or investors. To know that a bitcoin exchange is legitimate, check its online reviews.
For example, a platform like Cryptex (https://cryptex.net/trade/BTCUSD) has many positive online reviews, which shows it is safe and legitimate. Conversely, a platform with many negative reviews is a no-no.
2. Purchase Methods
Bitcoin changes are platforms where you can buy or sell bitcoin, but they are mainly used for buying bitcoins. The purchase methods available on a platform will determine whether you’ll be able to place an order or not.
A good bitcoin exchange platform should offer various ways of purchasing cryptocurrency. The purchase methods can include but are not limited to credit cards, debit cards, bank transfers or PayPal. A bitcoin exchange limited to one payment method might not be legitimate.
3. Check The Features Offered
Not all bitcoin exchanges are the same. Each has unique features that differentiate it from the rest. Before you sign up to any platform, check the features it offers. The three main types of exchanges are brokers, trading platforms and peer-to-peer (P2P) platforms.
You can choose a particular platform depending on your needs. For example, if you want to trade in bitcoin, you can choose a trading platform or a broker platform. Most brokers can help you trade in bitcoin and provide you with educational and training tools to get you started.
A P2P platform will allow you to make transactions and communicate directly with other bitcoin sellers and buyers. Such a platform is better if your only interest is buying or selling bitcoin.
4. Transaction Fees
The transaction fees will determine how much money you make when you trade in bitcoin. Bitcoin exchanges have different transaction fees. So, it would be best if you shopped around to find one with fair transaction fees.
Also, ensure the exchange doesn’t have any hidden fees or charges. A platform with low transaction fees is better because it saves a lot.
5. Years In Existence
Generally, it is acceptable that a platform that has been in existence for many years is more reliable. So, before you start trading on a platform, find out when it was created. However, that doesn’t mean all new platforms aren’t reliable. Some new platforms are equally safe and reliable. It’s advisable to use your judgment when dealing with a new platform.
Bitcoin has been around for over a decade, and its popularity continues to increase. It has become a preferred mode of payment for some individuals and companies because it’s safe and secure.
Before you choose the bitcoin exchange platform, consider the above five factors. It would help if you had an open mind when you want to trade in bitcoin because making money through bitcoin isn’t guaranteed.