What to Consider When Choosing a Bitcoin Exchange

Choosing a bitcoin exchange is an important decision to make and while it's easy to pick any popular one, you might want to pause a bit and consider some factors carefully. There are several bitcoin exchanges available today, including https://bitcoin-code.io/, and it can be a bit of a hassle to find out which is best. However, in this article, we have put together key things to consider while you choose.

Do Your Research

First things first, always do a proper background check before settling for a bitcoin exchange. Key things to check include the authority, reputation, and transparency of the site. You can also look for reviews from past and current users and spot any complaints. These reviews can also let you know if the platform is stable and reliable, especially when there's high traffic in the market and you need to trade. Other things to consider during your research have been discussed in subsequent points below.

Geographical Location and Restrictions

Your experience using a crypto exchange can be shaped by your location and the rules guiding your region. Some crypto exchanges or wallets are specifically made for people residing in that region, so you may have to look for the ones that apply to where you live.

You may also want to find out if crypto exchanges are legal in your country. Using India as a case study, exchanges are legal but cryptocurrency isn't legal, which makes it difficult for these exchanges to operate. However, with the recent developments in the world generally and also in the crypto industry, there are predictions that 2021 might finally be the year the crypto laws in India are clarified.

If you live in India and still want to trade bitcoin, you will need an exchange that can allow you to do that without any hassle.

Security

The first ten months of 2020 recorded about $1.8 billion worth of crypto fraud. The number of online fraudsters is on the rise, especially as technology continues to evolve. However, technology has also made it possible to improve the security of funds and leave little to no room for vulnerability on your account.

This is why you must consider security when choosing an exchange. What security measures does the exchange have in place? Does it include two-factor authentication? How well have they managed the funds of their users so far? Are there anonymous sign-ups? These and more are things you must consider.

Transaction Fees

While it is generally known that the transaction fees for bitcoin are low compared to traditional banks, it could also depend on the exchange you use. Get your options and narrow them down to the best, then choose the one with the most favorable transaction fees for you. You don't want to exhaust your profit on cumulative transaction fees.

Conclusion

Your choice of bitcoin exchange can make or mar your experience with bitcoin trading. An easy way out is to use a popular exchange that has gained authority over the years and has users who can testify to how beneficial it is, rather than trying new exchanges that are not yet trusted.