A complete guide to finding the perfect online bitcoin exchange!
Bitcoin exchange is an online platform that facilitates buying and selling of bitcoins over the Internet. It makes bitcoin trading a lot convenient, safer, smoother and fun. You can see here if you want to learn bitcoin trading.
There are several fraudulent and fake bitcoin exchanges, and you need to stay away from them. So, some of the crucial aspects that you need to consider while choosing an online bitcoin exchange are as follows.
Choose the right type
When it comes to bitcoin trading platforms, there are several types of them available. So, to choose the best one, you need to have knowledge about all the different types of bitcoin exchanges. There are mainly three types of bitcoin exchanges: P2P, brokers and trading platforms.
Each one of these exchanges has varying features and work differently. If we talk about bitcoin brokers, these are like agents who provide the users with a platform where they are buying and sell bitcoins.
On the other hand, the P2P bitcoin exchange is a platform that established a direct connection between bitcoin buyers and sellers and allowed them to trade bitcoins.
These types of bitcoin exchanges are considered to be most convenient and secure as there is no middleman or intermediary involved. Different types of bitcoin exchanges have varying fee structures and charges.
So, you must check out all the positive as well as negative sides of these platforms and choose the one that suits you the most.
Along with the types, the purchasing options and payment methods also vary with the exchange. It is another crucial factor to consider while choosing an online bitcoin exchange.
There is a good variety of payment methods that you can use to buy bitcoins, and each bitcoin exchange offers different methods. Some of the common purchasing methods are debit cards, credit card, bank transfers, PayPal, etc. Each one of them has its own pros and cons, so you need to gain information about each one of them before choosing an exchange.
Some payment methods involved minimum charges but take several days to process a transaction, whereas some of them allow you to purchase bitcoins instantly but includes massive transaction costs.
So, you need to do some research, know your needs and requirements, and choose a bitcoin exchange that offers the best payment methods for purchasing bitcoins.
Bitcoin trading is a profitable activity, but it also involves several risks. It is a risky activity, and a single mistake can bring massive losses for you. So, seeing the risks involved, some bitcoin trading platforms have started offering trading insurance funds to the users.
It is a fund that is used to cover certain risks involved in bitcoin trading. If you face any loss due to some specific market conditions, the platform will provide you compensation from the insurance fund. It is an incredible feature that minimizes the risks and allows you to trade freely.
So, you must choose a bitcoin trading platform that is equipped with an insurance fund as it will protect your investment and will help you avoid facing unnecessary losses.
If you are picking an exchange with an insurance fund, you must read all the policies, terms and conditions carefully so that you won’t face any confusion later on.
Fiat exchange is a feature through which you can exchange cryptocurrency with fiat currency. The bitcoin market is unpredictable, and there is no guarantee that if you have invested in it, you will always earn profits.
So, with such high risks and unpredictability, you never know when you may have to exit the market and leave bitcoin trading. So, to stay on the safe side in such a situation, you should always choose a bitcoin exchange that provides the facility of fiat exchange. It will allow you to convert all your bitcoin investments into local currency.
But the fiat options vary with different websites, and some of them are only compatible with certain banks.
So, before making your final decision, you must check if the fiat exchange facility offered by the platform is compatible with your bank account or not. It will make it easier to convert the bitcoins into fiat currency and get them deposited directly to your bank account.