There are a lot of bitcoin exchanges on the internet because the popularity of bitcoin is increasing day by day. Hence, the competition among bitcoin exchanges is also increasing since new bitcoin exchanges are coming into existence. As a result, there are millions of bitcoin users. However, it is also difficult for new bitcoin users to choose the proper bitcoin exchange. So without wasting time, let’s explore the proper method of choosing bitcoin exchange. In this article, we will share some tips to choose the best or suitable bitcoin exchanges.
What is bitcoin?
Bitcoin is a well-known cryptocurrency separated from the other currencies. You can do multiple things with cryptocurrency only. Bitcoin is the first cryptocurrency that came into existence in 2008 by an anonymous person. Still, the white paper shows Satoshi Nakamoto’s name. There are too many problems with fiat currency; hence, bitcoin has come into existence to solve these problems. No third parties are involved in bitcoin cryptocurrency because it is a decentralized currency.
What is bitcoin exchange?
Bitcoin exchanges are third parties that provide extra services to bitcoin users. These third parties simplified the process of buying and selling bitcoins. There are other features such as trading, sending and receiving, instant deposit from a bank account, etc., and they charge some fees for these services. Bitcoin and blockchain are decentralized platforms, but bitcoin exchanges are centralized systems that mean these exchanges are managed and controlled by a group of persons. Check the https://bitcoin-circuit.live/ for more details about bitcoin exchanges.
Why should you choose a bitcoin exchange?
Blockchain is the best platform for bitcoin transactions, but why should we choose bitcoin exchange for the same work? The simple answer is that blockchain does not provide transaction security, which means when you do a transaction with the blockchain. Your transaction amount and id will display on the blockchain. Anyone in the world can check your transaction id, receiver’s transaction id, the amount of transaction by visiting the official website of blockchain.
Steps to choose the best bitcoin exchange:
There are a lot of bitcoin exchanges on the internet. Still, it isn’t easy to choose the right or best bitcoin exchange because new bitcoin exchanges are coming into existence since the price of bitcoin is rapidly increasing. By increasing the value of bitcoin, the demand and users of bitcoin are increasing. By increasing the number of users, bitcoin exchanges are also increasing.
There are the following steps to choose the best bitcoin exchange given below:-
- Check the features:- Before choosing an exchange for bitcoin trading or investing, the first thing to notice is its features. The more features and services an exchange provides means with the best exchange you are going to choose. Unfortunately, some exchanges provide limited features and charge high fees per transaction. Always check the transaction fees before choosing; if the fees are high and features are limited, then do not choose that exchange and features are high and fees are low; that is the exchange you are looking for.
- Check rating and reviews:- Rating and reviews will tell you the actual truth about the exchange. For example, if there is a five-star rating and more positive reviews, then the exchange is best and if there are negative reviews and ratings, then search for a new exchange. You can also read the blogs or articles about the exchange by searching on Google “review (exchange name)” and check it on YouTube.
- Check the date:- You can find the details about the exchange on Google, and the main thing to notice is the date of launching. Check the date of the bitcoin exchange, and it must be five to ten years old, and if it is more than ten years old, it is the best exchange for you. The older the date of the bitcoin exchange means the more trusting and safe the bitcoin exchange.
- Check the security features:- You can check the security features of exchange by visiting the bitcoin exchange website you are analyzing. Security is critical because exchanges are third parties that hackers can hack if they find any security bug. Some bitcoin exchanges got hacked and lost bitcoins worth millions of dollars. Check whether the exchange provides two-step authentication and wallet lock or not. If they are providing more security features, then you can go with that bitcoin exchange.