How to Choose the Best Bitcoin Exchange

Considering buying Bitcoin? Investment in a digital currency such as Bitcoin is less risky when you understand the basics of how, where and what to buy. It’s important to choose the right exchange with an estimated 700 crypto-currencies available, as well as understanding the basic terms and how the Block Chain works as a system. This guide offers information about what to look for in bit performance or BTC, also known as tips for researching individual bit performance on the  Block, and safe buying practices for choosing a Bitcoin exchange.

Investigate the country of origin

The first step is to know which country the exchange originates from. Familiarize yourself with the regulations and laws of the locale. Read all the fine print in the terms of service section and find out what currencies are accepted, and which are not. There are two anonymity laws that can protect you. These are the Know Your Customer and Anti-Money Laundering laws. Some exchanges follow them, and some do not. Those which follow the laws will require some form of identity information from you prior to accepting your participation in the blockchain.

Method of purchase

There are multiple ways to pay for bitcoins. You can use cash, credit cards, wire transfer, PayPal and other payment services. Of these options, using a credit card leaves you the most vulnerable to a privacy breach. Cash transactions offer the greatest level of privacy protection. Check the exchange site to ensure that they carry the BBB, VeriSign or TRUSTe seal for online purchases. In addition, online websites bearing the https:// versus the http:// are more trustworthy because of the encryption system.

Verify exchange fees

There may be fluctuations in the exchange fees associated with bitcoin transactions, but one exchange will vary from another for the rates they charge. Ensure that the BTC exchange fees are not higher than the average charged within the market, overall.

Does the exchange publish their order book?

Bitcoin exchanges with larger customer bases offer a published version of their order books. This is a listing of the orders for buying and selling BTC that are offered on the exchange. The higher the volume in the blockchain, the more people are using the exchange, giving it liquidity. Is this absolutely required? No, but it gives you an idea of the usage that the exchange is getting.

Transparency

Always look for transparency in a Bitcoin exchange. Access to audit information about the verification of bitcoin reserves on an exchange lets you know that the block shows that it is capable or covering each exchange sale. The more trustworthy sites offer solid proof of liquidity.

Confirm expected delivery time after purchase

Find out when the bitcoin you buy will be sent to you. Read the fine print to determine if the exchange offers pricing that is locked in, to ensure that the quoted price at the time of purchase is what you will actually be charged for, regardless of the delivery time.

Verify the reputation of the exchange

Prior to buying, research the customer reviews pertaining to the exchange. Is it reputable? You can learn more by visiting an internet forum such as Bitcoin Forum, Bitcoin Reddit or others. Not all exchanges have been reviewed yet but do your best to find out about the experience of others with the site.

Avoid becoming a victim of fraud

There are multiple scam exchanges for BTC along with the legitimate companies. Use the tips and recommendations above for safe practices to avoid making common errors that could make you vulnerable to money stealing schemes. Thanks to the blockchain concept, bit is generally a safe investment as the original block is virtually incorruptible, but this doesn’t prevent scam sites from surfacing. Do your homework and research each Bitcoin exchange before you commit to buying.

New Blockchains based on the original surface daily. Some of the blocks are perfectly fine, but it’s worth the effort to prove that they are authentic and safe. Ensure that they are a legitimate and trusted company with good customer reviews that have been verified. Watch for red flags in the language or in the design of the site.

Close Menu