The thing to know before selecting Bitcoin Exchange

Cryptocurrency is a fascinating field that has been attracting a lot of attention for the past couple of years. Despite being a volatile currency, cryptocurrency, especially bitql, is gaining more and more popularity. Thus, if you wish to start trading and investing in bitcoin, you need to choose a good cryptocurrency exchange platform to get started.

What is a bitcoin exchange?

A bitcoin exchange, also known as a bitcoin trading platform, is an online based platform that provides facilities to buy or sell bitcoin in the cryptocurrency market. You can use any fiat currency to make transactions on these platforms. You can also exchange other cryptocurrencies for bitcoin. These transactions are highly secure, and these platforms ensure the privacy of the user.

Types of Bitcoin exchanges 

There are three types of Bitcoin exchanges or three ways the Bitcoin exchange works:

1. Centralized Bitcoin exchange:

A centralized bitcoin exchange either operates under a central authority or is governed by a specific company. This is the most commonly used Bitcoin exchange in the cryptocurrency market. Since there is a central authority controlling this organization, no third party has the right to interrupt any transaction or process. These exchanges are good for new traders because they are easy to use. But, transaction fees are a bit higher here.

2. Decentralized Bitcoin exchange:

This Bitcoin exchange is also known as DEXs and is a peer-to-peer connection between sellers and buyers. This Bitcoin exchange doesn’t have a central governing body. They are like an open marketplace where people can trade directly with one another by making a deal between them.One disadvantage is, that as it cannot be shut down by the government, it doesn't have a centralized infrastructure, due to which unethical activities can easily take place. Moreover, there is no one to listen to complaints on the platform.

3. Hybrid Bitcoin exchange:

A hybrid Bitcoin exchange is considered the best cryptocurrency trading platform and is also believed to be the future of trading platforms. Hybrid Bitcoin exchange, as the name suggests, has the properties of both the decentralized Bitcoin exchange and the centralized Bitcoin exchange. Due to this, it can provide real-time access to the users and ensure that every user of the exchange follows the digital laws. Moreover, the cryptocurrency also stays safe since it is stored in cold wallets.

How to select a good Bitcoin exchange?

You must select a good Bitcoin exchange for trading to ensure the security and privacy of your funds. Following are some features that a good Bitcoin exchange should possess: 
  1. Accessibility: Make sure that whichever Bitcoin exchange you choose is always accessible and available to you. You should be able to access this Bitcoin trading platform any time in the day like 24/7 from wherever you live, and this Bitcoin exchange should be legal in your country or state. 
  2. Security: Make sure that the bitcoin exchange platform you choose is secure and follows all the necessary digital security measures and policies. It is necessary because it can help ensure the privacy and security of your funds and protect your data from hackers. You can check their previous or existing customers’ review comments for this.
  3. Storage: Many Bitcoin exchange platforms offer Bitcoin wallets to users and traders. They offer wallet services so that you can store your Bitcoins and keep them secure with the help of private security keys. Make sure that the Bitcoin wallet services ensure the safety of your crypto. It is better if the Bitcoin exchange offers cold wallets because they are more secure as compared to hot wallets. 
  4. Coins offered: Some Bitcoin exchanges offer a small number of coins which can be a problembecause when you want to use cryptos of your choice here you might not get the facility. Thus, make sure that whichever Bitcoin exchange platform you choose offers you an abundant amount of coins and also a variety of options to choose from. 
  5. Fees analysis: The most important factor before selecting a bitcoin exchange is fee analysis. This means you need to analyze the fee structure or the amount that the Bitcoin exchange platform will charge you for trading Bitcoins on that platform.


Are you thinking of buying your first bitcoin but are not sure about how to get started on choosing a good bitcoin exchange platform? Well, this guide can be a great help to you. Always remember, that the most important thing is the security and privacy of your funds, and search for a website that offers you all the security measures.

Post a Comment

Previous Post Next Post