Bitcoin, a decentralized virtual currency has created a different market for investment, and people can invest their funds on BTC to earn a huge profit. You can invest in Bitcoin payments like stocks. You need to open an account on an exchange similar to your stock exchange account, and you can buy bitcoin from the exchange.
You must check their reviews to choose the best one, and you should check the security measures of such exchanges before you open your account. There are more than 500 crypto exchanges. Each of them offer the facility of transaction in your favourite crypto currency. However when it comes to finalising the best one there are certain para metres that you must take into consideration. The following segment of the block takes you through some of the key factors that you need to consider while choosing a crypto exchange platform.
Bitcoin Exchange: Factors to Consider
You must check the authenticity and legitimacy of such exchanges before you choose. You must know that there are no regulations available for exchanges and government cannot control such trading platforms. You can find some fake exchanges and platforms that are taking advantage of this loophole and they have created some platforms with lucrative offers. So, it is not a wise decision to create an account on a random platform to buy bitcoin.
You must check the reputation of such exchanges before you choose, and you can check their online reviews in this regard.
- You can buy bitcoin from such exchanges, but they have different payment modes and terms. Some of them allow us to buy bitcoin with debit and credit cards, and a few of them can also offer e-wallet facilities. You can use your wallet to buy BTC. Even you can use your PayPal account to buy BTC. However, you would be required to pay some fees if you are using PayPal. Hence, before choosing the payment method, you must check the associated fees.
- Bitcoin exchanges can charge a certain percentage as broker fees, and you need to pay a fixed charge for every trade. For example, you need to pay 1.5% as a transaction fee for buying BTC from Coinbase, and you need to pay the same fees while you sell your coins.
- Make sure you must check the nature of the operation of such exchanges before you choose. There are three types of exchanges available, such as P2P, Trading platforms, and brokers. If you want to buy or sell bitcoins to a user directly, then you can communicate with such users through a P2P platform. Trading platforms are dedicated online platforms from which you can trade bitcoin on a regular basis. Along with BTC, you can find many cryptocurrencies on these trading platforms, and you can add such coins to your portfolio to diversify your investment plan. Brokerage firms are dealing with these coins at extra charges, and you need to pay extra fees for buying bitcoin from a broker.
- You must choose a trusted exchange for trading bitcoin, and you should check their experiences in this field. It is not true that new platforms are not reliable, but old exchanges can provide better stability, features and reliability.
- The easy interface of exchange can help you to invest your funds in bitcoin in a simple way. There are some exchanges available with complicated interfaces, and you cannot understand their process even if you cannot understand the different metrics available on your dashboard. You must choose an exchange that has two interfaces, one for beginners and another for expert mode. So, you can start with the beginner’s mode and switch to expert mode once you have gathered enough experience.
Most of the exchanges provide valuable information regarding bitcoin trading, and you can find the latest trends, prices and trading strategies on their platforms. Along with that, you can use their trading bot to trade bitcoin. If you have any confusion, then you can trade with a broker through https://bitcointrader2.com/. This platform is good for new traders. Its easy to use interface will make it easier for you to understand how the trading market is operating and frame your trading strategy accordingly.