When it comes to Bitcoin, there are a number of different ways you can trade. These trading sites take the form of both marketplaces and exchanges that might have a range of features and services, with all types differing in their individual security levels. It is important that you are aware of the differences between exchanges and marketplaces because you need to know which one to choose and how to choose it. If you’re new to bitcoin trading, then investing some money on the cryptocurrency could be an exciting experience. You’ll want a site like Bitcoin Code that will help keep your investments safe and give them more value over time!
- Location of the exchange:
High-security levels are required for a Bitcoin exchange or marketplace to be counted among the top marketplaces. You will need to be aware of the location of the website you are using when you are making a trade. This is because the laws in different countries vary, and some websites might not comply with the legal requirements of your country. Choose a Bitcoin exchange or marketplace that complies with the laws in your country so that you do not land up in problems later on.
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- Complying with KYC:
Knowing your customer is a practice followed by many traditional banks as well. It ensures that the identities of its customers are kept strictly confidential. To be on the safer side, it is advisable for you to choose a Bitcoin exchange or marketplace that does not share information about you with anyone else. You should always be aware of the fact that your transactions are anonymous and that other people should not have access to any information about them. Avoid sharing any personal details so as to ensure this security is kept intact.
- Reputation and transparency:
If you are not aware of the reputation of an exchange or marketplace, you might end up losing a lot of money. Ensure that you are well-informed about the reputation of the Bitcoin exchange or marketplace before you start trading. Transparency is also extremely important; therefore, choose a Bitcoin exchange or marketplace that has a complete description of how it works and how its transactions take place. This will help you to determine whether the site is safe or not. You should also be completely satisfied with the identity of the people behind an exchange or marketplace before you start using it.
- Insured deposits:
Ensure that the exchange or marketplace you are choosing has an insurance policy against Bitcoin theft. This provides you with more peace of mind and less worry about losing your money because a hacker is able to access your accounts. Ensure that the identity of the insurance agent is known, as this will eliminate any chances of fraud. If there is no such facility provided by an exchange or marketplace, do not use it, as it might be unsafe for your money, and the security of your personal details might be compromised in a number of ways.
- Purchasing power:
The difference between the market capitalization and the number of Bitcoins in circulation is likely to be very high. This means that you might find that you only have a very limited number of Bitcoins to choose from. When it comes to trading, this might not be the best situation to be in, as it will limit your trading options. To protect yourself from this, choose an exchange or marketplace that has a lot of options for you so that you are able to trade as much as possible.
- Sufficient liquidity:
The liquidity of an exchange or marketplace is another factor that determines its safety for you. With a high enough level of liquidity, the level at which prices are moving does not matter because you can always find a buyer or seller who is interested in dealing with you at the price that you want. This means that your trades will always go through, and it protects you from the risks associated with price fluctuations. You, therefore, need to make sure that liquidity is high enough for your market so that you can carry out your trades smoothly.
- Customer service:
It is always advisable to choose a Bitcoin exchange or marketplace that has good customer service. This should be of great assistance for you, especially when it comes to problems. You will be able to get in touch with the support staff in order to find out about your trading issues and how you can solve them. When it comes to the overall experience you undergo, this is another thing that needs attention. If you are not satisfied with their services and product, do not use them and look for a new site instead.
The above information is everything you need to know about picking the best exchange to use. As you can see, there are a number of different factors you need to be aware of before choosing a Bitcoin trading site. In order to protect yourself from Bitcoin frauds, you should always choose a marketplace or exchange that has all the above-mentioned features and services. If you are able to keep these things in mind, you will be able to avoid fraudulent sites successfully and carry out successful trades with ease.