Generally, you’re best served by choosing an exchange located in the same country where you are. That way, your cryptocurrency is governed by the same laws and regulations that you are. Look for a physical address for the exchange to confirm that the exchange is located in your country. You can typically find this on an “about” page that lists basic information about the exchange. If you can’t find a physical address, you’re probably better off not using that exchange. [2] X Research source
You might look at methods of payment as well, and think in terms of security. Some exchanges require bank transfers, while others accept PayPal or credit or debit cards. While using your credit or debit card for your purchase may be convenient for you, it is less secure than other methods. You also want to take note of how long the exchange takes to complete your transaction. If you are comparing two exchanges that are otherwise equal, but one takes over a week to complete a transaction, while the other completes transactions within 24 hours, you likely want to go with the second choice.
Consider when the exchange is open to trades and make sure this suits your schedule as well as your intended use of cryptocurrency. For example, if you plan to actively trade cryptocurrency, you may feel more comfortable with an exchange that is open to trading 24/7. If this is your first cryptocurrency purchase, you may not know exactly how you want to use cryptocurrency – and that’s okay. Think in terms of what you might have an interest in doing in the future, and give yourself room to expand as your comfort with crypto grows.
Once you’ve identified maybe a handful of different coins that you’re potentially interested in, check your list of exchanges and cross off any exchanges on your list that don’t trade in the cryptocurrencies you want.
Depending on your method of payment, you may also be charged a conversion fee. This fee varies anywhere from 0. 5 percent to 5 percent of your total purchase, and is charged by the exchange to convert your fiat currency into cryptocurrency. Some exchanges don’t charge a conversion fee for funds transferred directly from your bank. You may also be charged transactional fees by the exchange based on your trading volume. These fees range from 0. 1 percent to 0. 5 percent, with lower fees typically paid by more active traders (those who buy and sell on the exchange more frequently).
You might also look at the resources the exchange has to educate and guide beginners as they start to trade cryptocurrency. Beginner-friendly exchanges include Coinbase, Bitit, Cex. io, CoinMama, Coinsquare, Gemini, Kraken, and ShapeShift.
If the exchange has had security issues or other problems in the past, find out how those problems were addressed. You may have to dig deep to find negative stories that the exchange developers attempt to hide from search results so as not to dissuade potential customers. Don’t just look on the first page of search results, go 10 or 15 pages deep if possible.
Expect it to take at least 10 minutes to set up your exchange account. For security and privacy, don’t start the process in a public place, or on a public WiFi network.
For this first step of the process, you’ll provide your name, address, phone number, email address, and other basic information. You may also be asked to choose a username and password. Make sure your password is complicated and secure.
The text-message code is part of 2FA. This process will occur every time you log on to your exchange account. Provided you enter your password correctly, the exchange will send a code to your phone. You’ll be granted access to your account when you correctly enter the code. Because the verification links and codes are only valid for a brief period of time, it is recommended that you have your phone nearby and your email account open. If you don’t see an email within a few minutes, check your spam or junk folder.
You may be able to purchase small amounts of cryptocurrency without completing this step. However, the total amounts of cryptocurrency you can purchase or hold will probably be limited. The exchange also may limit the number of trades you can make per day or week.
Typically, the site will provide a phrase that you must write out on a piece of paper, along with the date. You’ll then take the selfie so that both your face and the piece of paper are clearly visible. Some exchanges may send you a unique code that also must be written on the piece of paper.
If you use your bank account, this will typically take longer. However, it’s also more secure and typically offers quicker processing time for purchases. You may be able to connect a credit card instantaneously, but it will be less secure and you’ll likely encounter additional processing fees. If you have to wait for your method of payment to connect, watch the markets for a few days and look around the exchange to become more familiar with the interface and transaction process.
Cryptocurrency is extremely volatile. Especially for your first transaction, don’t spend any more money on cryptocurrency than you can afford to lose. Stop and review your information before you send it. Make sure you’ve entered all the numbers correctly and your decimals are in the right places.
If you’re planning on holding your cryptocurrency for investment, you should consider moving it offline as soon as possible, rather than leaving it in your exchange account. Right away, be sure to take steps to keep your cryptocurrency safe.
