This is a question that is difficult to answer for everyone as it depends on personal preferences.
Security
A key factor to consider is the level of security the exchange has implemented (2-factor authentication, password recovery, etc.), how often they back up their data and if they have ever been hacked in the past.
Reviews
Another way to tell if an exchange is reliable or not is by reading reviews about it online. Try googling “exchange name + review” and see what comes up. Also, check if the exchange uses its servers and databases or uses a third-party service. This is to ensure safety and reliability.
What is “Exchange”?
Exchange is a common term in the trading world. As more and more people are interested in forex and crypto trading, new exchanges are constantly being opened up. The word “exchange” can refer to an online service that offers a platform for trading between different currencies. It may even be a physical location where people meet to trade cash for cryptocurrencies.
How do I choose an exchange?
There are some things you have to consider when choosing an exchange.
First, you must think about what kind of assets you want to buy/sell/trade through the sale, as this will determine which exchanges suit your needs. Then there’s also reliability and safety of the exchange, which you should consider. It might also be good to check for some reviews about the exchanges.
If you live in Norway, you should know that it’s not legal to use exchanges outside Norway. The Norwegian Financial Authority (Norges Bank) has warned about these kinds of exchanges.
Therefore, choosing an exchange to store your information safely is essential – preferably in Norway itself.
What can I buy/sell through an exchange?
Most cryptocurrency exchanges only offer the option of trading between different cryptocurrencies. Some allow trades between cryptocurrencies and fiat currencies like USD or Euro, but most do not submit this possibility.
So if you want to use an exchange, make sure it provides at least one way of trading before committing any of your own money.
How to choose an exchange in Norway?
If you plan to use an exchange outside the EEA, the best thing would probably be to use a European exchange instead.
Many Norwegian banks do not allow their users to send money to foreign exchanges not located within the EEA.
So if you know for sure that you want to buy/sell cryptocurrencies with Euro – make sure to select an Exchange-based in Europe. Some examples of European exchanges are Kraken, Bitstamp or xBTCe.
If you do not have any preference about where they will store your information – maybe you only intend on trading between different cryptocurrencies.
How safe is the exchange?
This is a question that is difficult to answer for everyone as it depends on personal preferences.
Check the level of security the exchange has implemented (2-factor authentication, password recovery, etc.), how often they back up their data and if they have ever been hacked in the past.
How do I know if an exchange is reliable?
One way to tell if an exchange is reliable or not is by reading reviews about it online. Try googling “exchange name + review” and see what comes up.
Another thing you might want to do is check if the exchange uses their servers and databases or if they use a third party service. This is to ensure safety and reliability.
How do I know if an exchange is legal in Norway?
You should check with your local authorities if the exchange you plan on using has been given any warnings.
In Norway, exchanges located outside of the EEA have received a notification from Norges Bank – which means it’s not safe to use these exchanges if you want to keep your information stored safely in Norway.
In Summary
The best advice one can give when choosing an exchange is to make sure it’s safe, reliable and offers at least one way of trading before committing any of your own money. You should also try reading reviews about the exchange before deciding if it’s right for you. Follow Saxo Bank for more information.
