A Bitcoin exchange is a digital online platform where you can buy Bitcoin for trading or investing purposes. These sites facilitate the buying and selling of cryptocurrency. An exchange helps to find the right match for your requirements, whether it is to sell or to buy the coins. It provides you with the latest market price of Bitcoins and other altcoins. Immediate Edge can be sold here for fiat money or a different altcoin.You should be very cautious about the type of Bitcoin that you need to choose, and how you can go on with the best long-term investment methods for the same.
With the growing interest in Bitcoin trading, the emergence of fake exchanges too has increased. One needs to be wary of such sites where you can lose all your invested money. There are several platforms, however, that have made a name for themselves for being trustworthy and reliable. Bitcoin Era is one such crypto trading app that you can use without worry.
How to look for the right Bitcoin exchange
Here we shall discuss the factors that you must consider while selecting a Bitcoin exchange.
- Authenticity and transparency
Determining whether the online site is a genuine platform is the most important criterion. The site must include a physical address. This adds transparency to the platform’s transactions. Another feature that ensures transparency is whether the exchange displays its audit information and order book. An order book lists the details of the buy and sell orders that have been placed by the members of the exchange. You should check the number of coins that are available. Check the compliance as far as the KYC is concerned.
With the emergence of scam online exchange platforms, one needs to be very careful while selecting the right exchange. The best way to check their credibility is by asking for advice from friends and acquaintances who are into crypto trading or reading reviews online on forums where unbiased accounts are shared. Check the overall reputation and certification of the platform from where you start the trading.
- Transaction fees
Each Bitcoin exchange charges a fee for each transaction. The transaction fee must not include any hidden charges. The fee may depend on the volume of transactions or the frequency of transactions. If you plan to trade with recurring frequency, you can ask your exchange for a discount on a bulk of transactions made.
- Security features
It is preferable that the exchange adopts several security features that you must be eligible for before it allows you to open an account. You must, however, always keep the majority of your asset in a cold wallet and only the amount you need for regular trading in their designated or hot wallet.
- Crypto coins on offer
Besides Bitcoin, there are other altcoins too in which you can invest. This is mostly done to mitigate the risk factors that come with trading in a particular cryptocurrency.Ethereum, Bitcoin, Litecoin and other crypto varieties are always there, but you need to choose wisely, depending on your exact requirement.
- Payment options
Payment can be done via bank transfers, credit cards, debit cards, Paypal, or cryptocurrency. Knowing the options offered by your exchange is important.
Steps to set an account with a Bitcoin exchange
Once you select the Bitcoin exchange, you have to furnish details for personal verification. You then buy Bitcoin with the payment process authorized by the exchange. Once you have coins in your wallet, you can start trading.
2 ways to conduct Bitcoin trading
A Bitcoin trader can look for a suitable buyer or seller in 2 ways. He can do this by opting for:
- Market order
The trader allows the platform to trade his crypto asset for the best price available in the crypto market.
- Limit order
The trader specifies a price limit at which his asset must be sold or bought. Similarly, for buying Bitcoin, the transaction is executed at the limit price or at lower prices.
A Bitcoin exchange offers a secure, efficient, legitimate, and hassle-free way to conduct transactions for Bitcoin traders. Once you associate yourself with the right platform, you can be assured of a safe journey into the world of Bitcoin.