There are many exchanges to choose from when buying Bitcoin. Knowing where to start and then navigating all of the choices can be a daunting task especially for a newcomer.

Below is a process for finding the right exchange for you using the Bitcoin community review site Apollo.

Where are you located?

The country where you reside will dictate the set of exchanges available to you. Narrow down your options significantly by filtering on country at Apollo.

Are there KYC-free options?

Know Your Customer (KYC) is the practice of companies requiring identity verification of their customers in some jurisdictions to comply with anti-money laundering (AML) directives. KYC-free exchanges do not require identity verification to buy Bitcoin so are ideal to preserve privacy both of your personal information and of your Bitcoin holdings. Enable the No-KYC filter at Apollo to see if there are any KYC-free exchanges in your country. If there are none, Bitcoin ATMs may be an alternative KYC-free option in your area, though they typically charge a hefty premium upwards of 20% or more for the privacy advantage, and some may be fraudulent. If you'd rather not pay the premium for privacy or take the risk, then include KYC exchanges in your search.

Are there Bitcoin-only options?

Bitcoin-only companies invest in the ecosystem, drive global adoption, and build their infrastructure on top of the best that Bitcoin has to offer. Exchanges that deal with alternative cryptocurrencies (altcoins) tend to be the source of a lot of fear, uncertainty, and doubt (FUD) spread about Bitcoin. Corrupt exchanges like FTX go bankrupt, and Bitcoin's reputation takes a hit by association. While you may find lower nominal transaction fees on the crypto casino exchanges, they often have high withdrawal fees to discourage you from withdrawing your funds off the exchange, and they often require you to pay the network mining fees for the withdrawal transaction, which can get expensive when the network is congested.

The Bitcoin ecosystem benefits more when business is channeled toward Bitcoin-only companies, and often users benefit from predictable transaction fees with minimal spread, more trustworthy custodial practices to minimize risk while purchases are settling, and free withdrawals. Enable the Bitcoin Only filter at Apollo to see if there are any Bitcoin-only exchanges in your country.

Is the exchange P2P or custodial?

Some exchanges, usually KYC-free, are peer-to-peer (P2P) where buyers and sellers transact directly via escrow accounts without any third party custodian involve. Bisq and Hodl Hodl are canonical examples. P2P transactions can be complicated to execute for a newcomer or may even require that you have some Bitcoin already to post as a security deposit, and if the escrow handshake required to execute the trade isn't executed in a timely manner or in the right sequence, you could forfeit your side of the transaction or be scammed out of your money. If you're not ready for P2P exchanges, filter those out.

What are the buying limits?

Depending on the exchange and your level of identity verification, there may be limits to how much Bitcoin you can buy in a day, in a week, or even over the lifetime of the account. Consider how much Bitcoin you'd like to buy, then navigate to each exchange's website and search their documentation to understand their buying limits.

What are the fees and spreads?

Any reputable exchange will be transparent about their fee structure and spread (the difference between the purchase price and the market price pocketed by the exchange). Navigate to each exchange's website and search their documentation to find their fees and spread. Anything close to a 1% transaction fee with minimal spread and free withdrawals is a competitive exchange.

What is the exchange's reputation?

Browse the Apollo user reviews for the remaining exchanges under consideration. Sort by Most Reviewed, then look for the exchanges with the highest rating.

Conclusion

If you made it this far, then you've likely narrowed down your options to 1 or 2 reputable exchanges in your country and are ready to start buying Bitcoin. Navigate to your preferred exchange's website and follow the instructions to get started.

If you'd like a trusted partner that can tailor guidance to your specific needs and guide you on your Bitcoin journey, schedule a call with us.