If you want to buy or sell bitcoin, you will need to do so through an exchange, but there are so many different exchanges that it might feel rather overwhelming. However, taking the time to research each one, or at least your shortlist, will help hugely, especially when you know what you are looking for. Here are some useful tips.
Any Regulatory Actions?
Before you buy bitcoin UK, it’s important to check whether the exchange or exchanges you are thinking of using have had any regulatory actions against them. Some will have been subject to external inspections, or regulators may have restricted their actions in some way. Although this doesn’t necessarily mean that the exchange is not worth using, it is something to think about it you’re unsure. Any exchange that has been restricted could result in you not being able to buy what you wanted in terms of the amount of bitcoin you are looking for.
Trading bitcoin, or any other cryptocurrency, can be confusing and your exchange’s customer support might be absolutely crucial to your understanding and even success. This is why it is important to check that there is a way to speak to a knowledgeable human being rather than simply having to check an FAQ page or fill in a form. Live chat can be extremely useful, and a phone number might be even better. Having these things as a backup, even if you don’t use them, can give you ultimate peace of mind.
It’s essential that you know how much you are going to be charged for each transaction and trade, and if the exchange you are using is a good one, it will tell you clearly before you submit a trade. Make sure you can afford the fees and won’t lose too much in the process. You will also need to check the small print of any exchange’s terms and conditions to ensure there are no additional hidden fees because even if the initial fees seem good and you are happy to pay them, any hidden fees might wipe out your profit instantly.
When was the last time your exchange carried out any upgrades on its technology? The best exchanges will be entirely up to date with the latest tech, whereas those that don’t update are lagging behind and this can cause problems with transactions. It also shows that those running the exchange aren’t paying attention to what is happening in the cryptocurrency markets.
Security is hugely important, so checking the history of the exchange for any news about hacking and similar problems is a good way to find out how secure it really is. Those that have had problems should not be used unless there is clear, conclusive evidence that their defenses have been strengthened. Of course, hackers are constantly trying to breach the security of exchanges when it comes to bitcoin because the rewards would be enormous if they managed to get in. It means that there is no certainty that whichever exchange you did choose wouldn’t be targeted, but checking the security measures in advance and making sure they are up to date is a good idea.