What to Look at When Choosing a Bitcoin Exchange?

With the cryptocurrency industry seeing a large rebound during mid-to-late 2019, more and more people are looking to get involved in the space. One of the first things you need to do if you want to buy Bitcoin or any other cryptocurrency is to find an exchange to work with.

But how do you choose which cryptocurrency or Bitcoin exchange to use? There are dozens out there, and each claim to be the best and offer the best features or options. Thankfully, there are some things you can look at in order to make your decision a little bit easier. This article is going to observe a few things to look at before choosing a Bitcoin exchange.

How Strong is Their Security?

One of the first things to look at when considering which exchange to use is security. If it doesn’t have high-quality security practices or systems in place, your funds might be at risk. Since these coins and exchanges are decentralized, no bank or other institution will be able to help you out if you lose your money.

You should ensure that any exchange or platform you use, has the option for two-factor authentication and requires a decent amount of personal information to create an account. The cryptocurrency has had its fair share of hacks and other security threats, so take time to choose an exchange that not only claims that it is secure, but has demonstrated it over time.

Therefore, many people will be more willing to work with an exchange like CEX.IO, which uses cutting edge security practices and technology, even despite the process of verification might be a little bit tough. The fact that it has never hacked speaks for itself.

How Expensive are the Fees?

Of course, when choosing a Bitcoin exchange, you want to work with one that will charge you as little as possible. When you make trades on a Bitcoin exchange, there is normally a fee associated with these transactions. These fees range from an incredibly small amount to a pretty significant one. While most of us know about transaction or trading fees, there are also other kinds of fees as well.

There are also conversion fees, miner fees, and maker fees which could exist. It is up to you to decide if the fees, proposed by the exchange are affordable to you. Be careful, however. Just because an exchange offers low fees doesn’t mean you should instantly use it. You want an exchange that is both affordable and offering other benefits.

How Supportive is the Team?

When dealing with a cryptocurrency exchange or platform, it is normal to have questions from time to time. This could be a general question if you are new to the crypto space, or a specific question about a function or feature. In order to get an appropriate and timely response, you should work with an exchange that has a supportive team.

If it takes you a week to hear back from customer service professionals, it can get incredibly annoying. Working with a platform or exchange that offers around-the-clock assistance can get your questions answered quicker, allowing you to move on with your life.

Which Other Coins and Currencies Are Supported?

While many people will look for an exchange to invest, sell or buy Bitcoin, they may eventually gain an interest in other coins or assets. As a result, it is a good idea to know what other coins or currencies are supported by an exchange.

If your fiat currency isn’t supported, you could end up losing a lot of money in conversion fees or be unable to invest at all. Also, with well over 100 different cryptocurrencies around the world, no exchange can support them all. So if you are interested in more than just Bitcoin, ensure you find out what other cryptocurrencies your desired are supported by the exchange.

What Payment Methods Can Be Used?

In order to invest in cryptocurrency, you will need to fund your wallet on a given exchange. Without doing so, you will have no way to make the trades. There are many different ways in which it can be done that range from bank transfers, credit or debit cards and even potentially PayPal. However, not all exchanges will support all of these options.

Some will only allow bank transfers, while others may only let you deposit or withdraw with a credit card. It is very important to know what payment methods can be used before you sign up for the exchange.

Is User Experience Good?

If you are going to use an exchange frequently, you want to have a good experience while doing so. If an exchange is laggy, slow, confusing or difficult to maneuver, the process of investing in Bitcoin or another cryptocurrency can be painstaking. Any trader wants the exchange to be quick, easy to understand and allow for simple trading, withdrawing and depositing. Also, with mobile devices and tablets seemingly taking over the world, ensure that exchange or platform you work with has a good mobile site or an app, in case you want to trade or invest on the go.

If you want to know about the UX of the exchange before signing up, the internet is your friend. You can likely find dozens of reviews of every exchange out there, so you can know what you’re signing up for, before providing all of your personal information.

We hope that this article is able to help you learn what to look for when choosing a Bitcoin exchange to work with. Of course, before choosing an exchange, be sure to complete your own research into which one will work best for you.