Guide To Picking The Best Bitcoin Trading Site For Beginners
Bitcoin has been around for almost a decade. Its price increased to nearly $20,000 in 2017 when everybody was after this revolutionary currency. Although the market has calmed from the highs, there is still significant interest in bitcoin and thus, finding the best site to buy bitcoin is vital for any trader or investor. Finding the best place for your bitcoin purchase is tricky nowadays because of the proliferation of sites purporting to sell bitcoin, which has led to the emergence of scam exchanges.
With the cryptocurrency market growing fast, finding the best bitcoin trading site can make a difference in profits and losses. The process of identifying a safe and secure platform for your trading needs is complicated because of various factors, as no platform will meet all your requirements 100%. Therefore the goal is to look for a site that charges competitive fees and with enhanced security. In terms of security, always consider if the site offers 2-factor authentication (2FA), cold storage and if they support secure wallets. One of the providers of safe and free bitcoin wallets is PrivateX.io, which offers users an intuitive experience.
Understanding Bitcoin trading
Bitcoin is a decentralized currency that presents investors with numerous opportunities to buy bitcoin and then sell it when the price rises to make some profit. However, there is a difference between investing in BTC and trading bitcoin. When we are talking of investment, we are thinking long term where you buy bitcoin and HODL it with the hope of the price rising to sell the coins at a later date. The idea behind bitcoin investment is that the price will increase in the long run, regardless of what happens.
However, when we are talking of bitcoin trading, we are referring to leveraging trading opportunities in the near term when the trader feels they can make a profit. For bitcoin trades, BTC is a tool for making quick cash rather than an investment for the future. Considering BTC price is highly volatile, traders are after leveraging this volatility to take positions that assure profits provided they predict market movement correctly.
The allure with bitcoin trading is the ability to trade 24/7 on the bitcoin trading sites, unlike traditional markets, where there is a specific time for opening and closing the market. Also, it is easier to trade bitcoin from anywhere without worrying about long KYC processes because of its decentralized nature.
Considerations for picking the best bitcoin trading site
1. Site reputation
Since there are several bitcoin trading sites available when looking for a good platform, look at its reputation. Several sites are involved in disreputable activities, exit scams, and hacks, which leave customers from counting losses. Research about the site on Google and even social media looking for reviews and posts about the exchange. Read the terms and conditions of the site to see if there is any red flag.
2. Security and bitcoin storage
In terms of security, always go for a site with enhanced security protocols like two-factor authentication. If the site doesn't have that, then it is not acceptable by today's security standards. Also, consider the compatibility of the 2FA that the site supports as Google authenticator and Yubikey are some of the common 2FA that offer enhanced security.
It is essential to consider where you can securely store your funds, and although keeping your funds in the exchange wallet is an option, it is less secure. Go for secure crypto wallets such as PrivateX.io to store funds unless it is the amount you are trading at a particular time. Consider hard wallets which store crypto offline and can only be accessed by you.
3. Know Your Customer (KYC) verification process
Different trading sites have varying laws that govern them based on their offering, location, and practices. Some sites will require you to submit personal information when creating an account. KYC is essential as it will affect how you withdraw or deposit funds for your trading. Sometimes you may find that your location is not supported for trading in a particular platform.
4. Supported digital coins
Besides bitcoin, traders can trade in Litecoin (LTC), Ethereum (ETH), and many other cryptocurrencies. So when picking a trading suite, you should consider one that offers a variety of digital assets that you can leverage to make quick cash.
Best site to buy bitcoin
When looking for a trading platform for BTC trading in the US, Coinbase should be at the top of your list. The site offers a BTC trading platform as well as a wallet for storing your funds. It makes it one of the top sites for your trading needs. Most importantly, the platform supports funds transfer from a bank account to exchange where they are converted to BTC. Its fees for the bank transfer are $1.49%, with credit/debit card purchases of bitcoin pegged at 3.99%.
If you are looking for a quick and easy way of making transactions, then consider Coinamama. Coinmama is a trading platform that offers digital wallet services with over 2 million users globally. You can buy bitcoin from the homepage. Instead of trading on the open market, there is an extra added security component at Coinmama, whereby users can trade for its holdings.
Binance is the world's most popular bitcoin trading platform, supporting BTC, ETH, and its native token Binance Coin (BNB). The site charges the lowest transaction and trading fees at 0.1% for all trades. If you are looking for a variety of coins to trade, then Binance should be your pick. It has an intuitive interface, and the site is easier to use for novice traders
Bitcoin trading is growing in popularity, and a lot of people are making profits through trading. There are several bitcoin trading sites. It is crucial to consider the security of your funds by picking a wallet provider such as Privatex.io.