5 tips for signing up for a crypto exchange

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Investing in cryptocurrency is more popular than ever. If you are ready to buy crypto, the best way to do it is through a crypto exchange.

While major cryptocurrency exchanges usually have a straightforward signup process, it can still be different than what you’re used to. It’s not quite like opening a new bank account or applying for a credit card. By following a few tips, you can choose the right exchange and know exactly what to expect when you sign up.

1. Choose a crypto exchange with the features you want – and good security

Since crypto gained popularity, there are many more places to buy it. The most important thing to look for in a crypto exchange is security. Everyone wants to be sure their crypto funds and the cash they deposit are safe.

Many crypto exchanges have online security pages that explain how they protect their customers. It’s also good to check if an exchange has had any incidents in the past, such as data breaches.

Here are some other features to consider when looking for a crypto exchange:

Selection of Cryptocurrencies: Some exchanges offer dozens of cryptocurrencies, while others only have a few. If you plan to invest in many types of cryptocurrency, choose an exchange with many options. Educational Content: Several popular exchanges offer high quality educational content and news. It’s nice to have whether you’re new to crypto or have some experience. Design: Crypto trading will be much easier if you sign up with an exchange that you are comfortable with. While you might not be able to see everything before signing up, you can check out the exchange platform and see what the reviews are saying about it.

If you’re not sure which exchange to choose, here are two user-friendly options:

2. Make sure the exchange is available in your area.

One of the tricky things about finding a crypto exchange is that they all have their own geo-restrictions. Some exchanges are not available in the United States. For example, Binance is the largest exchange in the world, but it is not available to US customers. It has a separate and more limited US platform, Binance.US.

There are also crypto exchanges that can work in the United States, but only in certain states. These kinds of limitations can be frustrating, especially if you’ve started applying for an exchange only to learn that it doesn’t serve customers in your area.

When you’ve found an exchange you like, check out where it can work to see if you can open an account. You can also specifically search for exchanges authorized to operate where you live.

3. Be prepared to verify your identity

When you set up a crypto exchange account, you will go through an identity verification process. It is generally referred to as “KYC”, for “know your customer”. Financial services companies must do this to ensure that they are not being used for illegal activities, such as money laundering.

Most exchanges ask for your date of birth, social security number, and physical address to verify your identity, as well as a scan of a valid government-issued ID. You may also need to take a selfie. Have this information and a valid ID so that you can pass the ID check without any problem.

4. Configure two-factor authentication

Two-Factor Authentication (2FA) is a security feature offered by almost all major crypto exchanges. Some make it optional, while others require you to use it.

With 2FA, you need two different types of authentication to access your account. Your password is one form of authentication, and the second is often a code sent to your mobile device, email address, or an authenticator app you use.

With 2FA, it’s much more difficult for anyone to gain unauthorized access to your account. Even though it’s optional, it’s worth using it to add an extra layer of security.

5. Don’t expect to start trading right away

It’s exciting to start trading crypto, but you may have to wait a few hours or even days before you can do so. The identity verification process does not always happen immediately. While many exchanges can do this in a matter of minutes or hours, it may take longer.

You may also need to fund your account before you can buy crypto. If you do this with a wire transfer, the process often takes several business days. There might be faster ways to buy crypto depending on the exchange, but bank transfers tend to be the cheapest option.

While signing up for a crypto exchange isn’t too difficult, it can feel a bit foreign when you’ve never done it before. The tips above can make the process faster and easier for you.

Buy and sell cryptocurrencies on an exchange chosen by experts

There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide which features are most important to you.

To get you started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and start your crypto journey, today.

Read our free review

Believed strongly in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. Editorial content for The Ascent is separate from editorial content for The Motley Fool and is created by a different team of analysts. Ally is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly owns shares of Ethereum. The Motley Fool owns shares and recommends Ethereum. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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