The answer to that, as you may have already guessed, is by finding the right exchange to suit you and what you hope to achieve. For those new to the industry, it’s likely that you don’t know where to start but that’s where we come in.
Whether you’re looking to dabble in the industry, or you truly want to push your small business further through making a long-term investment, here is how you and your business can choose the right exchange for purchasing Bitcoin.
What currencies do they offer?
The first thing you really need to consider and perhaps most obvious of all is which currencies an exchange offers and whether Bitcoin is one of them.
Most multi-cryptocurrency exchanges will offer Bitcoin and of course, there are others that are solely for Bitcoin, but it’s still something that you need to be careful of when researching. In August 2017, Bitcoin split into two separate cryptocurrencies – Bitcoin and Bitcoin Cash. For this reason, ensuring that you know the difference is vital.
You cannot exchange BTC on a BCH focused exchange and vice versa, and you won’t be reimbursed if you make a mistake.
Where is it located?
Laws and regulations surrounding the use of cryptocurrencies differs from country to country, so knowing which your exchange operates from is vital for ensuring that it is trustworthy.
Choosing an exchange from your home country is highly recommended, however, this can differ depending on how new cryptocurrency exchanges are where you live.
Your home currency will also have an effect on the exchanges you can use – after all, if your currency isn’t accepted, you may need to use a Forex exchange before you can purchase Bitcoin which can ultimately mean you lose money in fees.
Speaking of fees, you’ll need to ensure that they aren’t unfair or overpriced within your chosen exchange. One of Bitcoin’s biggest perks is that fees are non-existent in most cases, however, Bitcoin exchanges can often have fees tacked on regardless. Ensuring that these are reasonable is a must to prevent unnecessary loss of funds.
Method of payment
Referring back to our previous point about your home currency, the methods of payment that a currency exchange offers is something else you need to consider. Can you pay by card or wire transfer? Do they offer PayPal or another third party alternative?
While this may not seem strictly important, exchanges that offer a wide variety of secure payment options are generally the better to choose, especially if some of these alternatives are anonymous or private.
The true impact of Bitcoin on today’s society is vast and so it’s understandable that businesses across the world are opting for investing in this new venture.
While the future of this cryptocurrency as an everyday method of payment for businesses or consumers has yet to be seen, it’s popularity is gaining traction and whether or not it reaches a point of global adoption is all a matter of waiting patiently, watching the markets and getting involved.