Buying Bitcoin? 4 Criteria For Choosing a Right Crypto Exchange
Your first incursion into cryptocurrency will almost positively take place on a cryptocurrency sell – a place for shopping and offered bitcoin.
Travel back in time a few years, and there were only a handful of crypto exchanges out there. Nowadays, there are almost too many to select from.
For example, CoinMarketCap lists over 100 cryptocurrency exchanges at the time of writing. How do you presumably select the right one? How do you figure out which is the most secure and reliable?
Unfortunately, there is no right answer. Every sell is tailored to a different buyer, in different countries, with different levels of experience.
Here’s how you slight down your choices. (Once you’re finished reading, take a look at Block Explorer’s 2019 cryptocurrency sell guide for even more data, research, and advice).
1. Are you a amateur or advanced?
If this is your first time shopping cryptocurrency, you can discharge the immeasurable infancy of crypto exchanges immediately. Many are simply too formidable or formidable to use.
If you’re a more modernized trader, you might be looking for more formidable facilities like domain trading, customizable trade charts, and hundreds of altcoin trade options. Options embody Kraken, Poloniex, and Binance.
2. Currency options and sell pairs
We can also order the exchanges formed on which currencies they accept. For example, not every sell accepts US dollars. (One of the biggest exchanges in the world, Bithumb, only accepts Korean Won).
And then there are some exchanges that only accept cryptocurrencies. Binance, for example, doesn’t accept fiat banking at all. So you’ll need a accumulate of bitcoin or ethereum to get started here.
You’ll also want to check either an sell supports the cryptocurrency you want to buy. You can’t squeeze the third-largest cryptocurrency, XRP, on Coinbase, for example.
3. Security features
$1 billion value of cryptocurrency was stolen in 2018 – the immeasurable infancy from cryptocurrency exchanges. Exchanges are big targets for hackers as they reason such vast quantities of funds. With that in mind, confidence is a high priority.
Look for crypto exchanges that store at slightest 90% of supports in “cold storage” (offline storage which is more formidable to hack). Any sell with word coverage is also value observant (there aren’t many!) Look for 2FA and encrypted email options too.
Lastly, do your investigate into either the sell has been hacked in the past. Were they open and honest about the penetrate or did they try to cover it up?
Volume is a magnitude of how much cryptocurrency is traded on the height in a given 24 hour period. It’s a useful discernment into how “liquid” an sell is. And a small indicator of an exchange’s reputability (if there are millions of daily transactions, it’s a good pointer that lots of buyers trust the exchange).
You can see a ranking of the tip 100 exchanges by volume here on CoinMarketCap.
Beware, however, that some of the biggest exchanges on the world have been accused of faking their volume figures in an try to elaborate their presence. Some of the largest exchanges indicted embody OKEx, Bithumb, and Huobi.
Choosing a cryptocurrency sell is a personal decision, but make sure it’s a unsentimental one too. Put security, transparency, and repute at the heart of your search.
About Ben Brown
Ben is the editor at Block Explorer – the world’s longest-running bitcoin transaction tracking tool. He is the author of 3 cryptocurrency eBooks and has had work published in the Huffington Post.