Bitcoin Exchange: What It Is And How To Select

Before investors can start buying or selling Bitcoin, they mainly need to make several decisions that will affect their experience with crypto down the road. Among such important factors, one to finalize choosing a reliable online trading platformBitcoin transactions. This might sound like an irrelevant choice at first, but the trading platform you choose will ultimately decide how good offers you’re going to see and the overall security of your digital assets. 

Overview of Bitcoin Exchange

Bitcoin exchange platforms are designed with a simple aim in mind: to match potential buyers with potential sellers and help seal bitcoin deals flawlessly. Like stock exchanges, traders and investors can buy or sell Bitcoin through market orders or limit orders. If you’re new to buying and selling Bitcoins, it’s always good to check out a couple of Bitcoin exchanges so you can get a feel for the current prices, bids, and auctions centered around this valuable crypto. 

Bitcoin exchanges are also, for the most part, a more secure way of buying or selling Bitcoin than the first shady email you see. 

Market Orders and Limit Orders

Market orders are the more common of the two, and generally involve the trader permitting the exchange to sell their coins for the highest available price. On the other hand, limit orders direct the exchange to trade Bitcoins for a price below the current ask (when the trader is buying) or above the current bid (when the trader is selling). 

Payment Methods

Depending on how they work, for the ease of convenience, different Bitcoin exchanges alsooffer other payment method options, including direct bank transfers, payment through debit or credit cards, bank wires, drafts, bank orders, and even gift cards. 

Not only this, if a trader wishes to withdraw money, he/she also has several options for doing so. The exchange could directly bank transfer their funds to a bank account, do the same through a PayPal transfer, mail a check to the trader, or other payment methods like direct cash delivery or credit card transfer. 

How Do You Choose A Bitcoin Exchange?

Picking the proper Bitcoin exchange can be difficult if you don’t know what you should be looking for, but it’s also crucial to the long-term success of your Bitcoin investments. Below, we’re going to explore how you can select the proper Bitcoin exchange for your investing and trading needs:

1. Use as many cautions as You Can. Then Use Some More

We really can’t say this enough: be very, very cautious when picking an exchange for trading any crypto, whether it be Bitcoin (BTC), Ether (ETH), or even XRP. Considering the number of fraudsters and scam sites out there, we’d recommend sticking with the sites you know and love, like Coinbase, or new sites verified and recommended by thousands of people, such as bitcoin alleviation.

The question is, how can you check up on a particular exchange’s trustworthiness? First, look for a physical address provided by the exchange. Transparency is the first step to evaluating legitimacy, and additionally, there can be additional legal factors depending on where the exchange is based. 

2. Don’t Forget to Do Your Research

When it comes to investing in cryptocurrency, the investors should never overlook doing the research part. Proper research helps you choose a reliable cryptocurrency trading platform to trade in bitcoins. 

3. Go for the Exchange with Higher Security

If you’re storing your digital assets there, it is highly advised to choose a secure exchange to take your cryptocurrency trading journey smooth everytime. A great tip is checking out how difficult it is to create an account at a particular exchange. If they let anybody sign up within minutes that suggests the exchange isn’t very trustworthy. 

You want to look for an exchange that makes you verify your identity, your phone number, and several other things since these are usually good indicators of strict security measures. 

The Bottom Line

At the end of the day, if you seem to be planning to invest in bitcoin or other cryptocurrencies, choosing a Bitcoin exchange is a must. If you want to keep your transacational records safe and secure, going with a reliable platform to trade bitcoins will always be a good option.