Bitcoin Exchange Guide: Researching And Finding The Best Exchange And Storage Solutions

Exchanges such as Binance, Coinbase and Kraken make buying bitcoin easy, but the article warns that the collapses of FTX and Celsius showed the risk of leaving assets on an exchange, which can be exposed to hacking, mismanagement or insolvency. It sets out what to check when choosing an exchange, including reputation, fees and hidden costs, security features, regulatory compliance, transparency, liquidity, customer support and the small print of any insurance, which often covers the exchange rather than individual users.

The article recommended moving bitcoin off exchanges after buying it, and weighed the convenience of insured custodial services against risks such as trust dependency and rehypothecation. For self-custody, it suggested bitcoin-only hardware wallets such as Coldcard and Foundation Passport, separate secure storage of the seed phrase and multi-signature set-ups, and pointed to projects such as Border Wallets working to make self-custody easier.