A lot of Bitcoin exchanges pride themselves as the best UK Bitcoin exchange. Even though they claim to be as such, it does not mean that they are legitimately the best. Having said that, we have to mention on here that there are several criteria for you base your search on.
There are so many criteria floating around for you to look for the best UK bitcoin exchange. However, we have narrowed it down to these few to make your search better. Please keep in mind that when we say “Bitcoin exchange”, we also mean every other cryptocurrency that are possibly in existent currently. In case you are in a hurry, here’s a guide on Crypto Digest News which lists down some of the best UK cryptocurrency exchanges.
Criteria 1 – Security
Obviously the security side of things are the most important criteria on the list. Quite frequently we will often hear about new cases of cyber fraud. Before we continue, we should mention on here that cryptocurrency is not controlled by a central government or a central authority, unlike your countries’ own currencies. So if anything happens to your cryptocurrency portfolio (eg: stolen, crashed, etc) then your portfolio will be gone with it.
So yes, it’s important to be on the lookout on the security aspect. Examine how the crypto wallet’s technology store the cryptos. See how the company plan to store the coins. Is it in a web wallet? Or in a hardware wallet?
Other things you should look into is whether if it has a centralised platform. Some bitcoin exchange needs you to have a crypto wallet to store your cryptos and have it linked before trading it. Some others have their own wallets in its own platform.
Also have a look into the backup and what the platform’s plans with it are. Are there any special registration features that comes with it too? So many questions!
Criteria 2 – Company reputation
You will want to look into company reputation as not every platform’s company will help you when you face problems with it. For example, the customer service and after sales activities matter when you find that you have run into its platform-related problems. It can be payment problems or just your regular enquiries.
At the same time you will want to look up if the company behind the crypto platform is a scam. This is because some companies use crypto platforms to receive your payment then run away with your money. So be vigilant about such platform.
Criteria 3 – Exchanges between crypto and FIAT
Exchanges between crypto and FIAT is important present day. You will find that some people have already diversified their portfolio by already investing in every cryptocurrency. When they already have a crypto of every currency, they will look for something else to invest in, which more often are FIAT. They can choose to exchange crypto for FIAT and vice versa.
It doesn’t necessarily be FIAT. It can be any other entity such as foreign exchange (FOREX), stocks, and many similar entities. This is a good thing in a sense that it makes transactions, buying and selling a lot easier on a daily basis. If this is your thing, then we’d advise you to include this criteria when you’re on the lookout.
Criteria 4 – Availability
This criteria can mean 2 things. The first thing is whether if the exchange has all the cryptocurrencies available. Most leading bitcoin exchanges have the major cryptos listed along with the smaller ones. However, not every bitcoin exchange are like that. Some only house and list the major ones, while some others list only the minor ones.
Generally when people start looking into crypto exchanges, they usually look for the ones that have a comprehensive list of cryptocurrencies. They will often choose the ones that has a diversified and complete list of cryptocurrencies. This is because people want to have as diversified a cryptocurrency portfolio as they can have for themselves.
The other thing with availability is whether if you can use cryptocurrencies in your country or area. There are crypto or bitcoin ATMs around the planet that you can check here. They function pretty much like your regular ATMs, except you can buy, sell, and trade bitcoins on it.
At the same time, these bitcoin ATMs also allow you to send and receive money in your “accounts”. You are also able to use your cryptocurrencies to buy items and pay for services. But take note that not every shop or companies will accept cryptocurrency as an exchange of payment. Check with the stores first before dealing with it accordingly.
Criteria 5 – Investing as an investor or trader
Do you plan to invest as a trader or as an investor? Because first and foremost, investing as a trader and an investor has its own differences. Think about whether if you want to invest long term or short term too.
If you wish to invest and trade long term, the general feedback and advice experts usually provide is that you trade using FIAT. Have multiple currencies ready at hand before you start trading with it.
If you are a short term trader (5 years or less), then generally any of the leading bitcoin exchanges will suffice. You may or may not need to have several FIAT currencies at hand or ready. As long as you have the minimum amount to trade (different on different exchanges) then you are good to go.
The bottom line is that there are so many criteria to look out for when you are choosing a bitcoin exchange when you are in the UK. The above listed are just some of them. Hopefully you are able to choose the best one in the UK for yourself.