You would have probably decided to start using bitcoins and to begin your stint with bitcoin trading but might have been boggled with several questions, one being which exchanges to choose when it comes to making transactions using bitcoins. This article will briefly discuss the 7 important factors that you need to keep in mind while selecting the correct bitcoin exchange platform for all your purposes.
- Maintain Privacy – It is important to keep all monetary transactions privately held and to ensure that all transaction-related information is safe. Therefore, when you decide to buy Bitcoins or BTC, you must choose the most private payment methods. As such, you can eliminate the most commonly used payment methods such as paying via debit cards, credit cards, net banking, bank transfers, PayPal, or any other system that requires you to provide your personal information or any other related identifying information. Thus, the most private way by which you can buy bitcoins is by using cash or by making cash deposits.
- Know Your BTC Limits – The next important deciding parameter when it comes to choosing an exchange is how many BTC coins you intend to buy. If you plan to purchase many bitcoin coins in bulk, that is you wish to buy more than 25 BTC, then you will need to choose an exchange that is huge, preferably a big broker. For example, Coinbase is one such exchange that offers high buying limits for bitcoins. Other big brokers or bitcoin exchanges include Coin ATM Radar or CoinMama. These exchanges accept different forms of payment, hence check with them before sealing the deal. Although most exchanges set no predefined buying limits, it is better to check with your broker before initiating a purchase because limits may vary among individual sellers and limits tend to be lower in certain online exchanges.
- Check Access Speed – The third important factor that you need to consider while choosing your exchange is to check how quick these perform. You need to analyze when you will be accessing your bitcoins or how often you are likely to convert your fiat cash into bitcoins. Based on this you need to choose your payment methods, as different methods supply coins at varying speeds. One of the fastest ways to receive bitcoins is from a Bitcoin ATM but you need to have one installed in your vicinity.
- Know the Exchange Rate – Just as in buying and selling currencies, it is important to know the price of 1 BTC, as there is no fixed bitcoin price. Tools such as CoinDesk or BitcoinAverage can help you check the average bitcoin price across major Bitcoin exchanges. You can then compare this with your exchange.
- Check Reputation – First timers always wonder whether is it a scam or not. In order to clear your doubts, verify the facts such as the years of service the exchange has been providing and if it is reliable or not. User reviews can help a lot in this regard.
- Know the Fees – You are here to earn and not to spend. Therefore, know how much fees the exchange charges you for its service, including the deposit and withdrawal fees. Choose that one where you think you will be spending the least.
- Know Your Payment Method – Lastly, you must know how you plan to pay for your bitcoins. You might have already decided on your payment method but ensure to maintain a bitcoin wallet to stow away your bitcoins to safety.