5 Digital Currency Exchange Facts You Should Know
Knowing how to trade and digital currency exchange strategies is essential in getting started with digital currency. However, knowing which cryptocurrency exchange to choose can be one of the most important first steps.
Since we are focusing on how to choose the best Bitcoin exchange and Bitcoin investment, your funds into Bitcoin and the digital currency exchange from where you buy them, making sure you are choosing the right one becomes critical.
This article will put you through some of the top items in our checklist we recommend reviewing before selecting a Bitcoin exchange.
Remember, these are just suggestions to help you make the right decision. In the end, things can always change based on the digital currency exchange and the market. But doing your homework first is highly encouraged.
The Country your Digital Currency Exchange is Located
Knowing your country and where the digital currency exchange is based is very important, as laws and regulations can vary from country to country. Buying Bitcoin in your home country is typically recommended.
For a full list of exchange country locations, go to Buy Bitcoin and from the drop-down menu, select your country to start. if the digital currency exchange is being based in your home country or not, the exchange may accept multiple currencies.
Make sure to check the fine print; usually digital currency exchanges post in their terms of service what currencies they do and do not accept.
How to Buy Bitcoin for your Digital Currency Exchange
A digital currency exchange that is fully transparent will publish cold storage addresses or audit information on how to verify their bitcoin reserves. Bitcoin audits are a good way for an exchange to prove to customers that they have liquidity and can cover all bitcoin exchange sales, and aren’t running a fractional exchange.
Factors to be Considered during your Digital Currency Exchange
- How Quickly will you get the Bitcoins after Purchase
This may vary person-to-person, but it’s good to know how long before the Bitcoin will be sent to you after purchase. Ensure that the digital currency exchange offers ‘locked in’ pricing; meaning that the price you buy at is the price you will be charged for even if the bitcoins take a few days to arrive.
- Is Anonymity Important to you
Staying completely anonymous is difficult unless you buy locally from someone in cash through a person-to-person marketplace. Make sure to check if the exchange follows Know Your Customer (KYC) and Anti-Money Laundering (AML) laws in your country. If they do, then some identity information will have to be sent to them before buying.
- Your Security is Paramount
Knowing the exchange is secure is very important and shouldn’t be overlooked. Is the exchange site HTTPS or HTTP? For it to have a secure protocol it must be HTTPS. Does the exchange offer secure logins along with two-factor authentication (2FA)? These are just a couple of things to think about before selecting an exchange.
You must try as much as possible to avoid fraud, becoming a victim should be a high priority. This means avoiding any scam exchanges that are designed to steal from you. Please read our guide to avoiding Bitcoin fraud for more details.
Is Bitcoin Halal? An Analysis of Shariah
Many Muslims are interested in Bitcoin and other digital currency exchanges (cryptocurrency) because they can change the way we transact value. There have been many questions about cryptocurrency since the 2009 creation of Bitcoin.
- Islam: Is cryptocurrency halal or not?
- Is cryptocurrency haram?
- Are Bitcoins Halal or Haram in Shariah Analysis?
- Is Bitcoin mining or trading haram
- Is it permissible to invest in Bitcoin?
- Is it right for Muslims to partake in digital currency exchange?
- Is Bitcoin mining considered halal?
Many Muslims disagree on whether bitcoin should be considered haram or halal. Digital currency exchange is a controversial topic because the Quran does not contain any specific texts on cryptocurrencies. Bitcoin is a subject of concern in Islam due to its volatility and extreme growth.
It is not yet clear whether Muslims should invest in Bitcoin. However, many Islamic scholars have provided their interpretations of the Islamic Canonical Law and how it applies in Bitcoin.
Mufti Muhammad Abu-Bakar, a former Shariah advisor, argued that all currencies were speculative and susceptible to changes in supply and demand. These currencies are permissible under Shariah. Bitcoin should also be allowed.
Mufti Muhammad Abu-Bakar says that Bitcoin should not be used illegally.
Mufti Faraz Adam, an Islamic fintech consultant and finance expert, stated enthusiastically that Bitcoin and digital currency exchange was fair, atomic and transparent. He believed that Sharia shouldn’t prohibit it.
Culled from Bitcoin.com | How to Choose the Best Bitcoin Exchange
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