Investing in cryptocurrency has become all the rage and more and more people are interested in learning how to get in on the newest way to make money.
Digital currency is becoming more popular with every passing day which means that there are many platforms being created that give you the ability to trade, exchange, or purchase cryptocurrency. The trouble is that because there are so many, it can be a challenge to determine which is the best one to use to conduct your business.
By the end of this article, you will have a better understanding of how to choose a cryptocurrency exchange so that you can find one that will fit your needs and investment goals.
Location of the exchange
It is important to know where your exchange of choice is located because every state or country has their own laws and policies regarding the purchase of cryptocurrency. Ideally, it is in your best interest to utilize an exchange that is located in your home country.
The reason for this is that you will be able to conduct business in your home currency. However, if you are interested in conducting business with an exchange that is not based in your home country, be sure to review their terms and conditions. The fine print of terms and conditions can be helpful in understanding how the exchange works and will provide details as to what currencies are are accepted.
What forms of payment are accepted?
Before you commit to doing business with an exchange, it is important that you take into consideration the types of payments that are accepted. It would be a detriment to spend time on an exchange to only find out that the payment method you wanted to use is not accepted at checkout. Many exchanges accept major credit cards, wire transfers, cash or Paypal. If you are concerned about your privacy, you may want to conduct business with cash.
However, if you are not worried about anonymity, a credit card transaction will be fine. It is important to note that the payment type can come with its own set of fees. For example, some exchanges will charge a small fee if you choose to pay via credit card whereas a wire transfer or cash payment may be free.
The bottom line is that it is important to do your research and find out what fees are involved as well as what types of payments are accepted.
Exchange fees and volume requirements?
While we briefly mentioned the notion of exchange fees above, it is important to mention it again as exchange fees can vary from minute to minute based on the change in rates and market fluctuation. Fees also can vary between exchanges.
For example, if you have been working with exchange A but now want to work with exchange B, it is important to check their fee structure as it could be different from exchange A. In addition to checking the exchange fees and rates, you want to also make sure that you understand the volume requirements.
Some exchanges require that you purchase a minimum amount while others do not.
How fast can you receive your currency after purchase?
If you plan to invest a great deal of money into the crypto market, you will likely want to know how long it will take before your currency will appear. One thing you may want to look for when choosing an exchange is the idea of “locked in pricing.”
Locked in pricing means that the price you agree to pay when making the purchase is the actual price of the coins even if it takes several days for them to arrive. Some exchanges will charge you a different rate if it is higher on the delivery date than when you made the initial purchase.
When choosing an exchange, make sure that it is secure. This is a critical component as you do not want to deal with having your identify or funds stolen while making a transaction. Be sure to look for an exchange site that uses an HTTPS instead of an HTTP. HTTPS is an immediate indicator that the site is secure. To take it a step further, some exchanges offer a 2-factor authentication sign in system.
If you have friends who are also exchanging cryptocurrency, be sure to get their opinion of the best exchanges available. IN addition, do some research and find out if there have been any cases of fraudulent transactions.
There are many forums available online that feature consumer reviews and helpful information that can serve as great advice to you when selecting an exchange.
There is much to think about when investing your money into digital currency. To help you identify the best exchange, be sure to access websites like Best Cryptocurrency Exchanges as they are useful because they compare and review a large number of exchanges in one place.