7 tips to choose a reliable Bitcoin exchange

7 tips to choose a reliable Bitcoin exchange

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Are you planning to buy and trade Bitcoins? Well, in that case, you would need to sign up with a cryptocurrency exchange. The crypto industry is on rise of late and the bright potential of digital assets has ledto the growth of umpteen numbers of crypto exchanges today. So, there is no dearth of Bitcoin exchange for you. But then, not all such platforms would be compatible for you. The post below offers a brief on the points to remember while looking for a reliable Bitcoin exchange.

Check license and regulation

The best bitcoin crypto exchanges also assure licensed and regulated operation. A credible exchange will always state about its license and regulation on its website. If you don’t find the mention of license on an exchange’s website, consider a red flag. A licensed exchange assures legit and ethical business practices as per industry standards.

Identity check procedure

A reliable crypto exchange is extremely particular about accepting only legit and safe members. Thus, it will always follow identity check procedures before offering registration to interested members. The ID check might take a few days but it’s for your best interest only. You certainly don’t want to sign up with an exchange that accepts any Tom, Dick and Harry who might spell threat for others in the exchange. Hence you should only proceed with an exchange that conducts thorough KYC and AML check procedures on all new members.

Number of currencies

When you wish to trade Bitcoins you definitely have plans to exchange it into other currencies or alt coins. Thus, make sure, your chosen crypto exchange allows trading in wide range of alt coins and currencies.

High liquidity

Liquidity is always a big factor when you are looking for an exchange for trading your Bitcoins. Look for an exchange that offers high liquidity. International exchanges offer more liquidity compared to local Bitcoin exchanges.

Decentralized exchange

It’s better to avoid centralized exchanges as they have the scope to hide operational information from members. On the other hand, decentralized exchanges follow transparent operation and hence there is no scope of misguiding traders with misleading information.

Safety features

This is certainly one of the most vital points to consider while looking for a Bitcoin exchange. Reports on Bitcoin exchange hack are getting common with each passing month.In that light, it’s extremely crucial to find a Bitcoin exchange that is extremely strict about the safety of user funds.

Your chosen exchange should store maximum of your funds in a cold wallet which is beyond the reach of hackers. The remaining fund must be stored in an insurance-backed hot wallet.

Besides, your chosen exchange must also follow multi-signature authentication to add an extra layer of security to your funds.

User-friendly dashboard

If half of your time is spent in figuring out how to operate the exchange website then you are sure to lose interest in the game halfway only. Find a credible exchange that assures user-friendly operation.

Final words

You shouldn’t just settle with any exchange you come across online. It’s always suggested to proceed with a shortlist of at least 5-6 exchanges and a thorough comparative study on them. Look for an exchange that commands solid market reputation and is backed by positive reviews from both crypto experts and traders. It would be great if the exchange extends 24/7 customer support as well.