Bitcoin exchanges are the most popular trading scheme opted-by crypto investors all around the world. Figuring out how to buy a Bitcoin once you have forayed into the crypto market calls for you to understand the foundation of cryptocurrency exchanges or in this case, Bitcoin exchanges as it is the first step.
Bitcoin exchanges are not free; they demand a fee just to look at the various exchanges owing to its immense celeb status.
If you are a crypto enthusiast, you probably plan on investing in Bitcoin sooner or later whereas if you are an ardent crypto user who has previously had bad experiences with online platforms then you understand the importance of opting for the right portal. Either way, a standard Bitcoin exchange platform is viable to score a crypto homerun in the long run!
Before we see some crypto-changing tactics to successfully get trading in the FinTech universe, let us have an insight to BTC.
Bitcoin (₿) is a digital currency, better known as a type of "cryptocurrency" is an electronic technology that utilizes Peer-to-Peer (P2P) Bitcoin network mechanism and is devoid of any intermediaries or authoritative figures that govern the system making it the first ever-to-be decentralized virtual currency.
Bitcoin transactions use powerful technology called cryptography that verifies data which is then recorded on a distributed ledger known as Blockchain that is public to other Bitcoin users on the same network.
Monetary schemes are handled more efficiently since the onset of Bitcoin, a boon to the crypto world.
Let's take a walk with us to guide you in how to make the right decisions for the best Bitcoin exchange. Keep in mind that crypto market trends tend to fluctuate a lot so your decisions may even shift their focus from time to time again. In the end, it is always suggested to be equipped and driven towards your monetary acquaintances.
Location is key when it comes to cryptocurrency exchanges. It is extremely vital to equip yourself with the country you come from, the rules you are bound to and the laws that conform to the regulatory matters. Every country imposes its own laws and regulations, an important factor to be followed by every person based in that particular country.
Any crypto-eager user can buy Bitcoin from their country; all one has to do is search for the exchange country location options in an Online Bitcoin Exchange Platform and select the country of preference to start trading Bitcoins. A lot of platforms will support the availability of exchanging multiple currencies.
Bitcoin Purchases: The Process
It is recommended that as a crypto user you first scout your various payment options and compel over a payment gateway that suits you rightly. Understand if the platform avails cash payment? Does it support PayPal? Are credit cards legit on the exchange platform?
After researching, narrow it down to the most convenient and private payment method for you; probably cash payment or wire transfer will be more private than credit cards.
Easygoing Exchange Fees
Do ensure that the exchange fees for the online transaction are reasonable and market-proper. The fees are incorporated are generated on the basis of current ongoing market trends. Every exchange platform will have its own fee compilation and change every now and then. Certain exchange platforms will charge extra fees that will be cumulated with the total Bitcoin transaction fee.
The Bulk of the Order Book
All of the cryptocurrency exchange platforms currently present in the market sooner or later publish their order book. Basically, in crypto terms an order book is a list of orders that any user can buy or sell once the exchange is commenced.
The more the bulk of the order book or higher the volume it showcases that more people are using the exchange and the exchange has liquidity. This also is a sign that if a exchange does not publish out a order book then it is not valid, it probably owns an alternate function that is less bulkier in volume but more than that of other online exchanges.
Cancel Out All Fraud
When it comes to a cryptocurrency exchange, it is necessary to not be a crypto target in any scenario. Stay away from scammers and fraudsters that imply dooming risk to your assets.
Transparency of All Crypto Exchanges
The crypto exchanges that are transparent will self-indicate their transparency by auditing the addresses of Bitcoin that verifies the transaction. Bitcoin audits are brilliant as they verify their liquidity and prove the authenticity of the online exchange.
Anonymous or Not?
Of course complete anonymity is just a facade and in some cases it is near impossible unless you decide to buy a Bitcoin from a local marketplace in paper money. Do ensure that laws like Know Your Customer (KYC) and Anti-Money Laundering (AML) are legit in your country to sanction if the online exchange is true. If yes then all the information regarding the crypto user will be dispatched to the platform.
Reputation of Exchanges
Talk to more people, network and understand if the review is genuine or not. Go on popular internet forums to get more knowledge about the reputation of exchanges.
Levels of Security
Security is a prime factor and the user should understand if the exchange site is HTTPS or HTTP as well as if it does avail Two-Factor Authentication (2FA) or not. Make a good choice, check if it has a secure protocol and your Cryptocurrency Exchange is good to go!