Question 1

Are my USD or Fiat deposits insured?

Accepted Answer

Fiat balances held at a partner bank may carry FDIC/CDIC pass‑through insurance up to statutory limits, but crypto assets themselves are not FDIC‑insured. Look for crime or specie insurance that covers theft of cold‑stored Bitcoin.

Question 2

What is Bitcoin?

Accepted Answer

Bitcoin is a decentralized digital currency secured by a global, peer‑to‑peer network. Instead of relying on a bank or government, it uses an open ledger (the blockchain) to verify every transaction and enforces a hard‑capped supply of 21 million coins. Anyone can send or receive bitcoin 24/7, anywhere in the world, without intermediaries. → Want the full story? See our Bitcoin 101 guide in the Learning Center for a deeper dive into mining, wallets, and security fundamentals.

Question 3

What is the “spread” and why does it matter?

Accepted Answer

The spread is the difference between the highest bid and lowest ask. Tight spreads mean you buy closer to the true market price; wide spreads quietly add cost even if headline fees look low. Compare the spread in dollar terms, especially on smaller regional exchanges.

Question 4

What KYC/AML information will I need to provide?

Accepted Answer

Most regulated exchanges require at least a government ID, selfie, and proof of address. Higher trading tiers or institutional accounts may need source‑of‑funds documentation. Completing KYC unlocks higher withdrawal limits.

Question 5

How do payment methods affect cost and speed?

Accepted Answer

• Bank wires/ACH/SEPA – low fees, settle in 1‑3 days. • Debit/credit card – instant but 2‑4 % processing fees and cash‑advance interest possible. • Stablecoin transfer – nearly instant with network fees only, but requires prior crypto know‑how.

Question 6

Which other fees should I compare?

Accepted Answer

Look beyond maker/taker fees to: Deposit fees (bank wire, card, ACH) Withdrawal fees: both fiat and on‑chain BTC network fees Inactivity or small‑balance charges on some platforms Total cost = trading fee + spread impact + any funding/withdrawal fees.

Question 7

How do maker and taker fees work?

Accepted Answer

A maker order adds liquidity by resting on the order book; a taker order removes liquidity by filling immediately. Exchanges reward makers with lower fees (or rebates) because they improve market depth, while taker fees are typically higher. Always check both rates: active traders can save a lot by placing maker‑limit orders.

Question 8

Why does liquidity matter for new investors?

Accepted Answer

High‑liquidity venues (large order books, high 24‑hour volume) let you buy without moving the market, cut slippage on large orders, and make cashing out quicker during high‑volatility periods.

Question 9

What should I look for in a Bitcoin exchange?

Accepted Answer

Choose platforms with strong security (cold‑storage reserves, SOC‑certified audits), clear regulation or licensing in your region, deep liquidity so orders fill at fair prices, and responsive customer support. A transparent proof‑of‑reserves report is a bonus.

Question 10

How can I protect my Bitcoin after purchase?

Accepted Answer

The safest path is to withdraw to self‑custody (your own hardware wallet). For larger or institutional balances, consider multi‑institution custody, where several regulated entities each hold a key shard—no single party can move funds alone, lowering counter‑party risk.

Question 11

How fast can I get my Bitcoin off the exchange?

Accepted Answer

Check withdrawal policies: some exchanges batch withdrawals once per day, others release funds instantly but set daily limits. Also confirm whether they cover miner fees or pass them through to you.

Question 12

Why focus on Bitcoin only?

Accepted Answer

Bitcoin’s open, predictable monetary policy and decade‑long security record make it fundamentally different from other cryptocurrency. We believe institutional investment in the sector will continue to be concentrated in Bitcoin ETFs and Bitcoin Treasury Companies rather than the long tail of altcoins. By concentrating on a single protocol, we can dig deeper into technical details, regulatory nuances, and security standards—giving you clearer, apples‑to‑apples comparisons.

Question 13

What is your evaluation process?

Accepted Answer

Each provider is reviewed independently in‑house. We pull the latest terms, licenses, fees, and security disclosures directly from the source (regulatory filings, official docs, or API feeds) and score them against a transparent checklist. Users are invited to leave honest, unbiased reviews to deepen the perspective. Please email info@21rates.com if you spot anything missing or out of date.

Question 14

About Us - Who is behind 21Rates?

Accepted Answer

We are a small, independent team that has worked in Bitcoin since 2013: running mining farms, designing custody solutions, and building infrastructure for institutions. As long‑term holders who have witnessed bankruptcies caused by human error, weak security, and poor transparency, we created 21Rates so Bitcoiners can stop trusting and start verifying for themselves. Reach out to info@21rates.com if you're interested in getting involved!

Question 15

Affiliate Disclaimer

Accepted Answer

We may use affiliate links on this website. This means that if you click on a link and make a purchase, we may receive a small commission at no extra cost to you. This helps us to keep the website running and provide you with the best information possible.

OKX FAQ & Q&A

Frequently asked questions about OKX