Things to consider before choosing a cryptocurrency exchange

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Currently, you can buy Bitcoin from any crypto trading platform including international but if you get too many options, you get confused. A simple Google search 'top cryptocurrency exchanges' will show you hundreds of results which makes choosing a trustworthy exchange a very hectic task.

How would you know which cryptocurrency exchange is legitimate?

Seems complicated?

Don't worry I am going to take you through some tips that you'd consider before picking up an Bitcoin exchange.

This little but worth doing homework would keep you safe from troubles that many newbie crypto investors face.

1. Supported countries

There are only a few international exchanges that accept customers from all around the world. Therefore, make sure exchange you're choosing lets you buy, sell and store coins easily. There are some exchanges out there which let customers store bitcoins in some countries but don't let them exchange their coins for cash.

For example Coinbase, an international Bitcoin exchange and one of the top cryptocurrency exchanges, lets Indians store supported cryptocurrencies but buying and selling is not available for them.

2. Fees

Different exchanges have different fees structure. Always choose one who charges reasonable fees and provides hassle-free services.

Basically, a crypto exchange charges three kinds of fees: deposit fees, transaction fees, and withdrawal fees. Fees may vary from 1 percent to more or less, depending on the exchange.

3. Supported coins and tokens

There are some exchanges who only provide Bitcoin trading platform and some let you trade Bitcoin alternative cryptocurrencies such as Ripple, Litecoin, Ethereum, and the like too. If you've a plan to invest in other coins too then make sure exchange you're choosing supports coins you're willing to invest in.

4. Payment Method

It's very important to know how can you add money to your wallet account to buy BTC and how can you transfer the same to your bank once you sell them.

Payment methods differ across exchanges. Some exchanges accept deposits by bank wire transfer, some only use crypto-to-crypto trading (exchanging one coin for another), some allow Paypal payments and some let you buy Bitcoin with credit card and debit card.

Most people prefer buying Bitcoin with Paypal or credit card because these mediums provide payment protection but I don't recommend either.

Why?

Because exchanges usually charge more fees for these methods than bank transfer or crypto-to-crypto methods.

I personally suggest you buying using bank wire transfer or use crypto-to-crypto trading (but don't make payment until you get your coins or don't pay without using an escrow service), if you already own a cryptocurrency.

If your exchange allows cash deposits then you can also thing of it.

5. Security

Security is the most important factor that we cannot ignore at all. Cryptocurrency exchanges including top ones remain vulnerable to hacks all the time, no matter how large or small exchange is. Make sure your exchange uses secure protocol 'HTTPS' to make your communication with its servers encrypted.

In addition, it should also provide two-step authentication for secure logins and transactions. These are the basic requirements and you cannot consider an exchange safe without them.

Tip: Security is paramount therefore refrain from an exchange who doesn't provide 'HTTPS' and two-factor authentication.

6. Website/app interface and user experience

Its services should be accessible easily. Whether you're a professional or a first time buyer, you should seek intuitive web/app interface and good user experience. You should be able place buy and sell orders easily and quickly.

Read customer reviews to find out how well your cryptocurrency exchange is.

7. Buying and selling limits

Buying and selling limits vary between platforms for example most exchanges let you buy or sell up to 20 bitcoins in a day. Before picking up your crypto platform, make sure it's within your buying and selling limits.

8. Customer service

It's very crucial to know what is the response time of an exchange's customer service. If you got stuck somewhere then it'd be there to solve your issues and queries ASAP.

I know some exchanges who take long time to respond to customer queries. Avoid using a platform who doesn't offer good customer service.

Apart from that, try to know how long has exchange been in business.

Now you're educated and ready to buy your first coin.

Above mentioned points will help you choose a best cryptocurrency exchange to buy your first Bitcoin or altcoin. For your help, I'm listing best crypto trading platforms in the world; trusted and used by millions.