Home Finance 6 Tips and Tricks For Choosing a Bitcoin Exchange – 2024 Guide

6 Tips and Tricks For Choosing a Bitcoin Exchange – 2024 Guide

by Nina Smith

Since the market of cryptocurrencies is getting more popular in recent years, it is essential to select the proper online platform that you can use for trading. Bitcoin represents the most popular cryptocurrency and many people are interested in investing in this option because it has a stable growth in recent months which means that there is a high potential of earning profit from this investment. Therefore, it is very important to select a reliable exchange since you can only buy Bitcoin over this online platform.

Some of the main reasons why you should pay attention when it comes to the selection of online exchanges are related to security and speed of transactions. You can visit eng.ambcrypto.com to learn more about the crucial features to look for when searching for the right online platform where you can buy or sell Bitcoin. Furthermore, we are going to introduce you to some important tips that you should know when choosing this service.

1. Check the Basic Info About Exchange

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The standard pieces of information that you should check are related to the country where the exchange is registered, the name of the person who founded it, and the markets where they are active. The information about the country can be crucial because this market is still not regulated by official laws in most countries. That means that there is a chance that it might become illegal in the country where your e-wallet is registered. In that case, you might lose your funds. Therefore, we suggest you only choose well-known and popular options.

Moreover, pay attention to the security of those platforms. Cyberattacks are not rare on the internet, and even though the blockchain represents one of the safest systems today, there were some cases where hackers managed to steal a large amount of money that can lead to the bankruptcy of the targeted platform. The safest method of storing is to keep your crypto in an offline wallet. However, there is still a risk during transactions since you have to connect it online. Therefore, choose those services that have 2FA protection and SMS codes support.

3. Ability to Trade with Other Cryptocurrencies

While Bitcoin is the most popular option, some other tokens and coins might bring you high profit over time. Therefore, you should not rely only on the current value of BTC when you can allocate your funds to some other interesting options. In that matter, we suggest you research the market and try to determine which coin might have at least similar progress as BTC. The advantage of well-known platforms is that you can easily convert from one to another cryptocurrency or exchange it for fiat currencies.

3. Select the One with the Best Trading Fees

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Another important feature that you should check is the percentage of fees required when you are using a particular exchange. You should look for options that demand fees that are less than 1 percent. Also, in some cases, those platforms with high popularity will offer you to pay only around 0.2% for large transactions. Some of the best crypto exchanges are Bitfinex, Prime, and Binance.

4. Available Payment Options

Along with the privacy and available tokens that you can buy, you should search for those services that accept more than just one or two payment methods. The best choice is to select one that accepts credit cards and other popular options like Pay Pal, wire money, and more. However, you should know that payments with credit cards represent a less private option when compared to other types of transactions.

5. Avoid Unknown Sources

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The scammers are aware that the popularity of trading with cryptocurrencies is growing. Therefore, you should learn more about some techniques that they are using to lure people into sharing their private data or spend money on fake online platforms. The most common types are phishing and Ponzi schemes. When it comes to phishing, you might receive an email with the link to an unknown source, and visiting that site might lead to theft of your data. On the other side, Ponzi schemes are present for a long time, and they represent organizations of people who claim how their cryptocurrency will become the next Bitcoin, but in reality, they often don’t have any token at all, or it is completely worthless.

6. Check the Volume and Liquidity

One of the best indications that the exchange you are interested in represents a reliable option is if it has a high volume of transactions and proper liquidity. Liquidity is especially an important feature since it can affect the time of waiting when you want to sell BTC. The best option is to look for some centralized exchanges because they offer the highest volume and liquidity. These services offer higher security since they have a support of officials in that country. There are many states who are planning to implement the cryptocurrencies as regular method of payment.

The Bottom Line

As you can see, there are many factors that you should check before selecting the right exchange service. Also, you have to learn about different types of these services and their main features, such as peer to peer and full trading. Moreover, transparency, fees, and privacy can also affect your activities while trading. Even if some services claim how they are secure enough to keep your crypto safe if you choose an online wallet, it is still the best option to choose some other type of digital wallet.

If you follow these instructions, you can be at less risk of losing your funds or have poor trading experience. There is the expansion of online platforms where you can trade with Bitcoins, but stat aware only some of them can offer you an advanced level of security, low fees, and many other features that go in your favor. Moreover, you should check if there is an official trading platform in your country since it might be the most reliable option. Besides that, avoid those services that have a base in countries that might make the BTC illegal, like China and India.