The very first thing you need to learn when investing in Bitcoin is how to get it by buying it. However, you also must know which Bitcoin exchange is good enough for your needs. You have to make sure that you find a good Bitcoin exchange, since it’s where you’re going to buy the digital tokens.
In this article, we’ll let you know what things to take note when trying to find a good Bitcoin exchange. Take down notes and don’t forget these things when you start investing your money on Bitcoins.
You should first know where the Bitcoin Exchange Rate is located. This is simply because laws and regulations can vary from country to country. It’s generally perceived good if you decide to buy Bitcoins in an exchange in your own country.
And even though the exchange is located in your home country, it may still accept multiple currencies. Check the fine print. Usually the exchanges disclose which currencies they do and do not accept.
Typical exchanges accept various payment methods when they let clients buy Bitcoin. Methods include cash, wire transfer, credit cards, and PayPal, among others. It is advised to consider your privacy levels, since privacy security varies per method.
You also need to make sure that the exchange fees are reasonable and are not overpriced when compared to the rest of the market. Meanwhile, these fees can change overtime and they can vary from exchange to exchange. There are some exchanges that charge extra fees on top of the Bitcoin transaction fees.
Order Book Volume
Many Bitcoin exchanges that have quite a big customer base will publish their order book. An order book is a simple list of buy and sell orders on the exchange that are being offered.
When the order book is of higher order, you can take it as an indicator that people are using the exchange. This in turn means that there’s liquidity on the exchanges.
On the other hand, even if this is an important indicator, an exchange that doesn’t publish its order book is not necessarily bad. It might just be working out the function yet, or it probably has smaller volume than other exchanges.
The exchanges that are fully transparent will publish their cold storage addresses or audit information on how verify their reserves of Bitcoin. Bitcoin audits are great ways for an exchange to prove to their customers that they sport sufficient liquidity as well as prove that they can cover all Bitcoin exchange sales. It can also prove that they are not running a franctional exchange.
Speed of Getting the Bitcoin
This can be different from person to person. However, it’s still good to know how long before the Bitcoin can be sent to you after the purchase.
You also have to check if the exchange provides some sort of ‘lock in’ pricing, which means that the price you intend to buy Bitcoins at is the price you will be paying even if the Bitcoins take a few days to be received.