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5 Questions to Ask Before Choosing a Bitcoin Exchange?

By March 16, 2017 No Comments

With the Bitcoin market on the rise, investing in Bitcoins is a profitable decision. With that decision made, how do you choose which Bitcoin exchange to trade with? Apart from the obvious aspects such as the countries the exchange operates in, and the currencies they deal with, there are a few questions you should ask yourself before zeroing in on the Bitcoin exchange for you.
Is it trustworthy and secure?
The most important aspect to look for before choosing a Bitcoin exchange is the trustworthiness of the exchange. How do you know if it is? There are three ways you can do that.

  • Check for reviews about the exchange.
  • Search or ask for feedback on about the exchange on Bitcoin forums.
  • Have a look at the volume of transactions. The higher the volume, the higher the number of transactions, and the more trustworthy they are.

Also, be mindful of the level of security of the exchange. There are many fraudulent exchanges out there as well.
What payment options do they accept?
This is partly for convenience and partly for assessing the credibility of the Exchange. Most reputed exchanges accept only wire transfers as of now in order to avoid chargebacks and AML issues. Few exchanges have started using credit/debit cards, and PayPal among other ways. Choose an exchange that has payment methods most suitable for you.
What are their fees?
Generally, Bitcoin exchanges charge a certain percentage as fees based on the transactions. Some exchanges also charge a fee apart for the Bitcoin transaction fee. Make sure you do your research on that before choosing an exchange.
How long is their processing time?
The time taken for processing the various tasks is something you should consider when selecting an exchange. They could take time for account verification, deposit and withdrawal. Exchanges who follows strict operational procedures might have a slightly higher processing delay for KYC and other verification and validation process, as compared to minor exchanges. It may not be possible to withdraw your cash immediately with some exchanges. Be aware of that.
Where is the exchange located?
Many exchanges allow you to trade globally. However, different countries have different laws regarding digital currency. You need to make sure the Exchange is in accordance with the law to avoid any mishappenings later. For this reason, it is best to choose an exchange from your country.
Apart from the above mentioned attributes, it is also important to be aware of things like the exchange rates, verification process, and transparency. Belfrics is a global Bitcoin trading platform that offers a wide range of Bitcoin related services for a minimal fee. They provide a secure online Bitcoin wallet with automatic deep freeze storage that ensures maximum security for your Bitcoins. They abide by their core values of transparency and efficiency.
Ultimately, the choice lies with you. Choose wisely.

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