The crypto market is now more than a decade old, but it attracts new investors in large numbers. However, most investors don’t know where to start or how (or where) to buy cryptocurrencies. Several options are available in the market for buying cryptocurrencies, which makes it even more challenging to choose the one that best suits you. In this article, we will talk about factors that will help you pick the best option for you.
How to choose where to buy cryptocurrency
Buying cryptocurrency is much easier now than it was a few years ago. All you need to do is visit an exchange, fill in your details, specify your preferred payment method, and that’s it. However, the most challenging task is choosing the exchange to help you buy and sell cryptocurrencies.
There are many big and popular exchanges that you can trust, but they may or may not meet all your needs. So you must choose one wisely. To help you with the task, here are five factors that you must consider:
1. Location
Your location is the most critical factor because it will decide the number of options you have. Before you move ahead with crypto investing, you must check the regulations in your country. Moreover, experts recommend that you pick an exchange based in your country. To find an exchange’s address, you should scan its website. If you don’t find one, it should be a red flag.
2. Payment method
You can buy cryptocurrencies using different payment methods, such as bank transfer, credit card and cash. Other websites may accept various payment methods. For instance, when you buy Crypto with Binance, they can use a credit card. Before you finalize an exchange, you must check whether it accepts your preferred payment method.
3. Available cryptocurrencies
Not all exchanges offer all the available cryptocurrencies on the market. Thus, you must select a website that offers the cryptocurrencies you wish to buy.
4. Charges
Charges are another very crucial factor, as every exchange has a different fee structure. Some charge less, while others charge more. It is also possible that a website shows fewer fees upfront but has hidden costs.
Before you select any platform, it is essential to have complete information about the charges, including transaction fees, account opening charges and more. You should also weigh the platform’s fees against your expectation of the costs. If you don’t consider this factor, it may result in a waste of your time (and money) if you don’t find out that the charges are too much until after you register.
In addition to fees, you must also get information on the volume of transactions on the exchange. An exchange with high volume is better because higher volume results in higher price accuracy.
5. Security
Before you trust a platform with your money, you must make sure that it is secure. A simple Google search should give you enough details, such as whether or not the site has sustained any security breach. You can also search for the credibility of the platform by browsing through user reviews.
According to experts, cryptocurrency exchanges should follow anti-money laundering (AML) and know your customer (KYC)) procedures. Following such guidelines reduces the risk of illegal or fraudulent activity. Try to find out the percentage of assets that an exchange keeps offline. Experts say the rate should be at least 95%.
