If you want to purchase your own Bitcoin, you're inevitably going to need to sign up for an exchange.
That being said, making the decision to join an exchange is not one that should be taken lightly. The type of exchange that you choose to work with will be determined by a variety of crucial factors. If you're looking for an exchange that you can confidently hold your cryptocurrency in, here are four tips for choosing a crypto exchange.1. Make sure your chosen cryptocurrency exchange is beginner-friendly.
The biggest issue that new investors will make is choosing a crypto platform that offers a user interface that's not right for beginners. Another way of getting bitcoins is mine them. Mining is a process where the miner solves complex mathematical problems and gets bitcoins in return.
Take, for example, Kraken vs Coinbase. Kraken is an established cryptocurrency exchange in the space, but the issue is that it can be difficult for some users to navigate when they first sign up. Meanwhile, Coinbase is very user-friendly and offers additional options like Coinbase Pro to cater to seasoned traders.
Before you sign up for an exchange, make sure that you can navigate it with ease and access your funds without any issues. If it's too complex for you to use, it's best to go with another option.
2. Carefully research your platform's fees and other charges.
Whether you're using Litecoin, Ethereum, or Dogecoin, all digital assets require you to pay a transfer fee in order to use the network. However, these are not the only fees you need to worry about. All crypto exchanges come with additional fees like trading fees, fees for buying crypto or withdrawing fiat currency through your exchange, fees for exchanging one crypto for another, and beyond. The last thing that you want to deal with when you buy or sell cryptocurrency is high platform fees. Make sure to do your due diligence so you sign up with the best exchange that has lower fees.
3. Learn more about how your exchange keeps your assets safe.
Have you ever heard of Mt. Gox? If so, you know just how important security is when it comes to your digital currency. Unfortunately, hot wallets like custodial wallets are always connected to the internet. This makes them susceptible to hackers and malware. That being said, many cryptocurrency exchanges will utilize strategies like cold storage, two-factor authentication, and other security measures to protect your digital assets. Before you sign up with just any platform, understand how they keep your assets safe and what you will need to do in the event that your funds are taken from you.
4. Read the reviews of other users who have joined the platform.
Lastly, you should always make sure that your chosen exchange is the best one by looking at what others have to say. No matter what exchanges say about themselves, customer reviews almost always reveal the truth. Trader reviews will tell you more about fee structures, whether or not you're able to get your hands on popular cryptocurrencies, how simple it is to connect your bank account and buy cryptocurrency, and other crucial information.
Choosing an exchange platform is important as it's the only way to acquire your own virtual currency. If it's your first time buying crypto, however, the last thing you want to do is join just any old exchange. Instead, make sure that your chosen exchange is the perfect one for you by walking through the four considerations listed above!
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