Being well-versed with how to buy a bitcoin is an essential first step to enter the cryptocurrency market. However, knowing which exchange platform to choose for bitcoin trading can be one of the most important first steps. As you will be investing your funds in the exchange you choose, make sure to select the best site to buy and sell bitcoins.
Here are the top things we recommend you to review prior to making your decision to choose a bitcoin exchange platform:
The country where the exchange is located
The laws and regulations pertinent to cryptocurrency vary country to country. Thus, it is important that you know the cryptocurrency investment rules in your country and also where the exchange is based out of. It is recommended that you buy bitcoins in your home country.
Despite the exchange platform being based in your country, it may accept other countries’ currencies. Most exchanges provide a detailed information about their trading pairs and what currencies they accept or do not accept. Make sure that you check the trading pairs offered by the exchange that you are considering choosing for bitcoin trading.
The payment process
Different exchange platforms have different modes of payment. Find out if you can pay with cash, credit cards, wire transfer, PayPal, and more. Choose an exchange that offers a payment method that works best for you. Also, make sure to take into account your privacy levels, for example credit cards may be a less private way of paying for bitcoin purchase compared to cash transactions.
Order book volume
An order book consists of the list of buy and sell orders that are being offered on the exchange platform. The best site to buy and sell bitcoins will usually publish its order book. A higher volume means that people are choosing the exchange for cryptocurrency trading and the exchange has liquidity.
Although order book volume is a crucial indicator, it does not mean that the exchange that does not publish its order book is not legit. It may not have that function yet or it may have a smaller volume compared to other big exchange platforms.
Transaction processing speed
The speed at which exchange platforms process transactions vary from exchange to exchange, but it is good to know how long will you have to wait before the bitcoins are transferred to you after purchase. The best exchange to buy and sell bitcoins is usually designed to process transactions at a fast pace.
Do not forget to check if an exchange offers locked-in pricing, which means that the price you buy bitcoins at, is the price you will be charged even if your bitcoins are transferred to your account in a few days’ time.
This is one of the most important things that cannot be overlooked. Find out if the exchange is HTTPS or HTTP. For any exchange to have a secure protocol, it has to be HTTPS. Furthermore, find out if the exchange offers secure logins and two-factor authentication (2FA).
Being completely anonymous during cryptocurrency trading can be a bit difficult, unless you buy from a person-to-person marketplace by paying in cash. Make sure to check if the exchange that you are considering to choose follows Know Your Customer (KYC) and Anti-Money Laundering (AML) laws in your country. If yes, you will have to share some identity information with them prior to purchasing your bitcoins.
Investing in cryptocurrency helps you to make money, but you need to choose the right exchange platform to benefit from your investment. Considering these points will not only help you to select the best site to buy and sell bitcoins but also prevent you from becoming a victim of any scam.