How To Choose an Exchange

There are hundreds of Bitcoin exchanges. Most are fine. Some are not. Here’s a simple way to think about it.

Green flags — things that suggest an exchange is worth using:

Regulated in your country. Exchanges that operate under local financial regulations have legal obligations to their users. Look for ones that are licensed or registered with your country’s financial authority.

Long track record. An exchange that’s been operating for five or more years without a major incident has demonstrated some basic stability. Newer platforms carry more unknown risk.

Clear fee structure. Reputable exchanges are upfront about what they charge. Hidden fees or confusing pricing is worth noting.

Withdrawal to external wallets. Any legitimate exchange lets you move your Bitcoin out to a wallet you control. If an exchange restricts or discourages this — that’s a warning sign.

Red flags — things worth avoiding:

Promises of guaranteed returns. Bitcoin is volatile. Anyone promising guaranteed profits is either wrong or dishonest.

Pressure to deposit more. Legitimate exchanges don’t push users to add funds constantly.

No verifiable company information. If you can’t find who runs it, where it’s registered, or how to contact support — be cautious.

A few well-established options used widely: Coinbase (US, UK, EU), Kraken (global), and Binance (global, though regulatory status varies by country). These aren’t endorsements — just starting points for your own research.

Tomorrow: KYC — what it is and why every exchange asks for your ID.

— The Daily Bit