Here Are The Important Aspects To Consider When Picking The Best Bitcoin Exchanges
Bitcoin's global popularity is growing, and with its price rising in recent times, investors across the globe have been talking about opportunities being presented by Bitcoin. Nowadays, even Bitcoin's skeptics are joining the craze and several best bitcoin exchanges where one can buy bitcoin. Interestingly picking the right exchange is one of the things investors should be keen o because there is a proliferation of scam exchanges after defrauding genuine investors. If you end up picking the wrong exchange, you might live to regret your efforts as you are likely to encounter hacks, distractions, and even unreliable service.
To select the right exchange, always consider whether you want to trade in and out regularly, or it is a long-term investment you want. Although investing in bitcoin in the past has been challenging, the industry has evolved, and nowadays, you can get the best bitcoin market where you can easily and safely trade bitcoin. With platforms such as PrivateX.io, you get a secure and free bitcoin wallet where you can safely keep your digital assets after buying them from an exchange.
Benefits of buying Bitcoin
Bitcoin has become popular because of its decentralized nature, which means it is not restricted, and nobody controls it. As a result, the adoption of bitcoin has grown, and it is going mainstream, which makes it worth owning because of the numerous opportunities it presents. Because it is a virtual currency, you don't have to worry about carrying it or when it comes to divisibility. Most importantly, the vulnerabilities witnessed with fiat currencies are not there with Bitcoin, and with your PrivateX.io wallet, you are assured of the security of your funds.
There are numerous flexible opportunities presented by bitcoin to investors who can own and trade bitcoin as a commodity. Some of the best bitcoin exchanges offer spot trading where you can buy bitcoin and sell it on the exchange and make some profits. For instance, spot trading involves the actual bitcoin an investor buys and sells or transfers to their PrivateX.io wallet or another exchange, and they can hold the bitcoins for as long as they wish.
Also, traders can get to enjoy derivative bitcoin trading where they access products such as options and futures based on the underlying price action of assets. You can trade the products' contracts based on the underlying price of Bitcoin, and the contacts can be settled in BTC depending on the trading market you are using. Interestingly the contracts are local and are transferable to other locations.
What to consider when picking the best bitcoin exchange
One of the most important aspects to consider when thinking of investing in bitcoin is the exchange. There are different ways you can assess which is the best exchange for your needs because the exchanges have varying features in terms of security, fees and pricing, security breach history, if any, and supported digital assets, among others. Here are the things to look at when picking your bitcoin exchange:
Security should be at the top of the list of the things you look for in an exchange, and if the platform doesn't have basic security protocols, you shouldn't waste your time. Some of the basic security features include a two-factor authentication factor or the creation of a custom PIN. Always consider the compatibility of the 2FA and the common avenues for 2FA have Google authenticator, Yubikey, and Authy, which offer enhanced security compared to text-based 2FA.
Depending on where the exchange is located, it’s offering, and practices, the different bitcoin exchanges have varying regulations and laws. Some will have Anti-money Laundering (AML) or Know Your Customer (KYC) practices that require one to provide personal information to open an account. These requirements vary depending on the exchange. Some may require AML or KYC before you withdraw or lift some limitations that obligate uses to offer photo identification photos and residence proof.
3. Trading volume and fees
Trading volume is essential as it helps traders in knowing when to enter and exit positions. Sometimes volume issues can complicate positions on some exchanges, making buying or selling large amounts of bitcoin challenge. Most importantly some exchange post fake volumes and one way to look at it is true order book of other exchanges to see the amount of bitcoin they have in the order book and how the price level compares.
There is a small fee charged on transactions, and these fees depend on the exchange. Normally the fee is a small fraction of the trade, and this is important for traders who buy and sell BTC regularly as racking up fees could be expensive. Also, BTC's price will vary across exchanges because of trading volume, location, and other factors. The price discrepancy can be a red flag for a particular exchange suffering from low volume or liquidity.
Three best bitcoin market
There are numerous bitcoin exchanges globally with varying features and offerings. Here are some of the best exchanges;
Coinbase is among the top bitcoin exchanges in the US, which has been around for over 8 years. The exchange has primarily been without controversy as the industry grappled with shady exchanges and fraudulent coins. It is easier to use and offers a range of digital coins and high liquidity. The downside with Coinbase is that you don't control your wallet keys, but custodial wallets are insured.
Binance is currently the most trusted digital currency exchange which supports several cryptocurrencies. The exchange supports over 600 trading pairs, which include fiat/cryptocurrency pairs. Fees are the lowest compared to other exchanges, and there is advance charting. It is, however, tricky to use for beginners.
Another top bitcoin market is Kraken, which supports over 150 different coins, irrespective of whether you are trading or selling. The coin selection offers investors a variety, and the good news is you can buy bitcoin using fiat currency on Kraken, which simplifies things. The exchange’s mobile app is easier and intuitive to use with good customer support.