How to Buy Bitcoins and Find the Best Bitcoin Exchange?
Trading in Bitcoins is a rather bewildering business which is why this article aims to answer a very crucial question that many current and potential Bitcoin customers keep asking, ‘What are some of the most reliable Bitcoin exchanges that can be used to buy/sell Bitcoins online?”. The answer to this question is rather complicated because coming across the best bitcoin exchange in terms of security and service is no child’s play.
The complication of finding the best Bitcoin exchange is mainly attributable to the fact that a majority of these Bitcoin exchanges have been online of late. However, don’t worry because we are here to help. Included below is some valuable information about bitcoin exchanges and a list of the exchanges ranked by several factors including reliability, fees and payment options. Nonetheless, you know that nothing can replace our own personal research which is highly recommended in this case.
|CEX.io Review||UK||Wire Transer, Credit Card||Modest|
|Binance Review||China||eWallet, Coins||Very Low|
|Coinbase Review||UK||Wire Transer, Credit Card||Modest|
|Coinmama Review||Virgin Islands||Credit Card, Western Union, MoneyGram||Low|
|LocalBitcoins Review||Local||Cash, Paypal, Wire Transfer, Webmoney||Low|
|GDAX Review||United States||Wire Transfer, Coins||Modest|
|YoBit Review||Russia||Coins, QIWI, PerfectMoney, AdvCash||Modest|
|Kraken Review||United States||Wire Transfer, Coins||Modest|
|Bitstamp Review||UK||Wire Transfer, Credit Card, Coins||Low|
|Bitfinex Review||Hong Kong||Wire Transfer, Credit Card, Coins||Modest|
What is a secure Bitcoin exchange?
A secure Bitcoin exchange usually ranks higher than its rivals because of its authoritativeness and the users who provide good ratings owing to its credibility and transparency of data related to the storage of coins. In addition to having a secure website and server, these high rank exchange sites also allow payments through various methods.
Furthermore, the best and the largest (AND the most secure!) exchanges deal in multiple currencies which means you can buy/sell a bitcoin regardless of whether you have U.S Dollars in your wallet or British Pounds. These also allow trading through government issued currencies and altcoins.
How to choose the right exchange for you?
Although they all basically work the same way, there are some crucial factors which not only distinguish these Bitcoin exchange sites from one another but also determine their efficacy when it comes to trading profitably. Ask yourself the following questions;
Is the exchange complying with relevant regulations?
A compliant exchange is the best exchange! The purpose of regulations is to build the trust between users and the Bitcoin exchange so that the funds can be efficiently used for the mutual benefit of both parties. However, beware of sites that do not provide any information about their regulatory compliance online because it’s better not to trust them with your money than to bear losses.
What is the trading volume prevailing on the site?
A high trade volume speaks for itself. A Bitcoin exchange that has a lot of people trading on it informs you that people trust the exchange and that the exchange has good business practices. Such Bitcoin exchange sites also offer more fair trading opportunities for their users because the number of potential trading partners automatically rises. Furthermore, trading on a high-volume cyptocurrency exchange also reaps you the benefits of doing business on the average market value of a bitcoin instead of having to deal with high prices as is common with small exchange sites.
What are they charging you?
Bitcoin exchanges normally use two types of fee structures; a volume based fee model or a maker-taker fee model. A volume based fee model, as the name suggests, links the fee charged to the volume of trading. If your trading volume is high, you will pay lower fee and vice versa. On the other hand, a maker-taker fee model aims to ensure that prices do not fluctuate heavily and remain as close as is possible to the average market price. This model places the traders in two distinct categories, the makers who MAKE the price through their trading patterns whereas the takers who accept whatever is offered to them. The makers, therefore, do not pay any fee in exchange for their efforts to preserve the prices whereas the takers pay a fee for the convenience they get. Please notice that the fee represents a percentage of the amount being transacted and usually caps at around 0.30%.
What are the security measures taken by the exchange?
Bitcoin exchanges employ various security measures in order to ensure that their clients’ funds remain safe and secure and that their privacy is not compromised. Many exchanges use a two-factor authentication to prevent any breaches whereas some go as far as using advanced encryption methods and impregnable ledgers to ensure client security. An analysis of the security measures being employed by the exchange will indicate whether or not you should trust the exchange with your funds. Now that you have an idea of how to go about choosing the most suitable and secure exchange for you, you must be wondering how to start off. Here’s how!
Trading in bitcoins is rather enticing but you must begin with some bitcoins in your wallet. Included below is a simple two-step procedure to start off your journey in the world of cryptocurrencies;
Get yourself a Bitcoin wallet!
This requires a simple sign-up on sites like Blockchain.info in order to download a wallet. You can also download this wallet through an app on your phone which is available for both Android and iOS.
Use your credit/debit card or wire some money through bank transfer (method of payment depends on your jurisdiction and the bitcoin exchange you are trading through, please see the list above) to fill-in this intangible wallet with bitcoins. Once you have successfully purchased bitcoins from a secure Bitcoin exchange, these will automatically be transferred to your wallet.
Voila! You are good to go.