The use of bitcoin has gained a lot of popularity in the past few years. You can now use a Bitcoin debit card to pay for bills in stores that accept Crypto payments. The use of bitcoin among gamblers in online casinos like casino NetBet is also worth mentioning.
Many players prefer bitcoin transactions due to their faster processing times and lower fees. There’s one issue to discuss, though! Most people have difficulties choosing the most suitable exchange or brokers, and some make costly blunders in the process.
Check out tips to guide you in choosing the best Bitcoin exchange:
- Ascertain the exchange reputation
Bitcoin is a new industry, and the reputation of the exchange is worth considering. Some exchanges have in the past been involved in scammy activities leading to loss of cash. It’s then critical to research thoroughly. Check the exchange’s website for customer feedback or reviews. Also, go through their social media pages for any complaints from previous users.
- Verify all the security methods
All exchanges use distinct security procedures. Ascertain whether the exchange offers a two-factor-authentication ( 2FA). An exchange that doesn’t offer this doesn’t meet the required security standards. Also, search for the most compatible 2FA.
For example, Authy, Yubikey and Google authenticator offer better security as compared to text-based 2FA. There are also other security measures to consider depending on the exchange in question. These are, for instance, custodial storage services and cold storage asset reserves.
- Compare fees& prices
Dealing with bitcoin is different from bonds and stocks. Bitcoin exchanges involve a percentage charge, which can be costly in the long-run. Most of the top-rated exchanges determine the exchange rate based on a sliding scale or volume.
You expect the charges to be lower when more volumes are traded within a certain period. Also, the asset prices vary from one exchange to another. Crypto asset prices are generally determined by the participant location and many other factors. These discrepancies should help you in picking the most suitable exchange.
- Consider the liquidity
Bitcoin traders keep on seeking the best opportunity to buy or sell their cryptocurrencies. The liquidity of the exchange is a factor to consider. It’s the ability to sell whereby there are no major factors that can significantly prompt price fluctuations leading to a drop in prices. The liquidity is higher when the number of buyers and sellers is high.
- The volume also matters!
The number of participants using a given platform and the assets traded vary from time to time. This affects the ease of entering or exiting positions within the exchange. For instance, if you’re a seller looking to trade 200 BTC, it may not be easy to do so using a low volume exchange. There may not be a good number of sellers for the listed market price. This then forces you to sell and accept a lower offer.
The bottom line
You don’t want to make mistakes when trading in bitcoins. Information is priceless when choosing the best exchange for your cryptos. Conduct background checks and talk to other traders about your choice of exchange. Who knows? You may get ideas to help you make informed decisions.