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  • How do I find bitcoin exchanges?

  • How do I know if the exchanges can be trusted?

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For finding Bitcoin exchanges, check here (exchanges are ordered by volume): https://www.cryptocompare.com/coins/btc/markets/USD

There are two types of Bitcoin exchanges to consider:

  1. Centralized
  2. Decentralized

With decentralized exchanges, users keep their assets local, and so there is no need to trust a central authority. At the present time, it is harder for decentralized exchanges to build up liquidity. This means that the trading volume is lower and the bid/ask spread is wider.

Here are couple of resources regarding decentralized exchanges:

  1. 0x Protocol for building decentralized exchanges for Ethereum assets

  2. Waves platform DEX - decentralized exchange

  3. https://www.cryptocompare.com/exchanges/guides/what-is-a-decentralized-exchange/

Now, with centralized exchanges, the central authority running the exchange must be trusted. The process of deciding who to trust is less straight forward. Here are some attributes to consider when evaluating a centralized exchange:

  • The people running the exchange or company
  • The country where the exchange is subject to regulations
  • The security practice the exchange uses to protect customer assets
  • The insurance policy offered by the exchange
  • The history of customer issues at the exchange, reviews etc.
  • The transparency the exchange offers
  • The communication facilitated by the exchange with its customers

I have put together this YouTube playlist discussing some of these attributes with respect to GDAX, Coinbase's exchange: GDAX and Coinbase cryptocurrency exchange - Overview

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I've come to realize over the years it's a good practice if you have a decent amount of value sitting on an exchange and you want to go long.. it's best to take the time to download the blockchain for your investments, Then encrypt the wallet files and backup to multiple places (including a cloud account).

Taking the coin off the exchange gives you a peace of mind and mitigates "impulse trades".

If you are trying to find the best exchange to short a coin, click the coin on coinmarketcap.com and look for the exchange with the most volume.

I prefer Poloniex, Kraken, hitbtc, and liqu I've lost coin on mtgox, bitfinex, btce

Good luck trading!

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