Generally, Bitcoin exchanges must be used for trading and buying, not for storing digital currencies. When investing in Bitcoin, it is important to consider purchasing a hardware wallet to protect and store your bitcoins. It is best to move your currencies from an exchange to cold storage and hardware wallets after accumulating the amount you cannot afford losing to malicious hacks and scams.
Many investors use Paychain but before you pick yours, it is essential to do your due diligence. Check out the history of the exchange to see if it has been subjected to a malicious attack or phishing scam before. Also, look at their list of tokens they support. Make sure to consider the following when choosing a Bitcoin exchange:
Geographical Location and Restrictions
Most cryptocurrency exchanges have a limited geographical scope of individuals they cater to. You will want to sign up for an exchange you can legally access and trade on. Thus, ensure you pick a Bitcoin exchange that you can access from your country and is legal. Generally, the availability of cryptocurrency exchanges in a country depends on factors such as proper licencing and certifications, as well as the respective laws and regulations of the country on blockchain and crypto.
Moreover, because of the volatility of the industry, there have been stories about crypto exchanges unfairly withholding or confiscating funds of users altogether. That is why you must pick an exchange that is based on a jurisdiction you are familiar so you can seek legal recourse if you have to.
Liquidity and Volume
Usually, a huge trading volume indicates the liquidity of the exchange and overall ability to fill the order of users at any point of the day. Keep in mind that liquidity is the very heart of your ability to buy or sell Bitcoins. For instance, if you want to trade with Bitcoin, sign up for a centralised exchange because they are liquid and let you fill your orders within just seconds. But, if you only want to buy and trade smaller coins, you may choose a smaller or decentralised exchange.
Security and Support
Security must be your main priority when picking a Bitcoin exchange. Although centralised exchanges support higher volume and increased liquidity, this makes them the best target for phishing scams and other malicious attacks. Also, these exchanges have an array of options to pick from to liquidate or trade the crypto they have just acquired.
