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Analysis / Business

How To Choose The Best Cryptocurrency Exchange Site

Bitcoin

In recent years, the cryptocurrency market has exploded into life with more and more companies entering the lucrative market. Almost every day you will find new cryptocurrencies appearing, and there are dozens of exchange platforms you can use to trade them. The increase in popularity of digital currency means that there are many cryptocurrency exchange sites that give people the chance to purchase, exchange, or trade cryptocurrency.

Individuals are now starting to appreciate the fact that investing in cryptocurrency is the newest way of making money. If you are like most people, you might be wondering which the best cryptocurrency exchange site today. The problem is that there are so many cryptocurrency exchange sites in the market, which makes it difficult to choose the best one. Not all cryptocurrency exchange sites are the same. Depending on your individual needs, there are cryptocurrency exchange sites that best suits your needs.

Some cryptocurrency exchange sites allow peer to peer transactions, where individuals can discuss terms and make deals with each other. However, if you are looking for a platform to trade more digital currencies, this might not be an ideal exchange site to use as there is limited choice of cryptocurrency. So what exactly do you look out for while choosing the best cryptocurrency exchange site?

For most investors, security is the most important aspect to consider. One of the greatest threats to cryptocurrency market is hacking. In case the site you are trading in is hacked, it is unlikely you will ever recover your money again. This can be a bitter pill to swallow. Therefore, it is advisable you choose an exchange platform that guarantees the security of users. The following are other factors that will help you choose the best cryptocurrency exchange site.

Location

The first thing you need to consider is the location of the exchange site. Different countries have different legislations that can affect the performance of the exchange site. Most exchange platforms want to make every transaction as anonymous as possible. However, depending on their location, the country’s government may require they disclose personal information about users for tax purposes. In addition, most countries want to enhance the regulation of the cryptocurrency market.

You can find exchange platforms that are located in your home country while others in foreign countries. Common sense will tell you that you choose the one in your country. However, for you to choose the best cryptocurrency exchange site, you need to take into account your investment goals and personal needs so that you can reduce the available options.

What Are The Payment Methods?

The next thing you should consider before committing to an exchange platform is the payment method that is applicable. That is, the type of payment that will allow you to withdraw and deposit your funds. There is no need to waste time on an exchange platform only to realise at the last minute that the payment method you preferred is not accepted. You can find cryptocurrency exchange sites that accept wire transfers, credit cards, PayPal and cash.

If you want to conduct your business with anonymity, you can use exchange platforms that allow cash transactions. While different types of payments such as cash and wire transfer may be free, some platforms charge exchange fees for credit cards. Knowing the fees applicable with each payment method will help you save money while choosing the best cryptocurrency exchange site to use.

The Type Of Cryptocurrency Used

While choosing the best exchange platform, it is important you consider the type of cryptocurrency used. You can find hundreds of cryprocurrencies available in the market today. Examples include Bitcoin, Ethereum, Zcash, Monero among others. However, before you purchase one, it is important you do your research on sites that trade these digital currencies. This will help you determine the best cryptocurrency exchange site that you should use. Binance is among the largest exchange platforms with more than 100 cryptocurrencies. On the other hand, Poloniex is the largest exchange platform in the world for trading the famous Bitcoins.

Reputation Of The Exchange Site

And last but not least, you need to consider the reputation of the exchange site. The popularity of the cryptocurrency market means that you will not miss fraud sites ready to pounce on unsuspecting investors. To avoid losing your money to scams, it is important you check the reputation of the site before you join it. Most of the time, large exchange sites are less likely to be scams. In case you choose to use small exchange sites, it is advisable you check their user feedback to find out if there are any complaints or not.

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With over 5 years’ experience in the heart of the investment industry, AL-Fatih has become a respected commentator in the financial world. Fatih remains a keen forex, bitcoin, cryptocurrency, stocks, commodities and binary options trader. He is a regular featured analyst for a number of online news portals and was responsible for FXDailyReport.com.

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