When it comes to trading bitcoin, there are a lot of different choices out there. Which one is the right one for you? That can be a difficult question to answer, but we’re here to help. This blog post will discuss the different factors you need to consider when choosing a bitcoin trading platform.
Let’s take a look at these considerations.
Most bitcoin trading platforms charge a fee when you buy or sell, and this fee is typically around 1-3%. You must find a bitcoin trading platform that has very low fees because it could end up costing you a lot of money. Look for a platform with no buying/selling fees or one that at least offers a discount for executing larger orders.
If you plan on frequently trading bitcoins, it would be wise to sign up for a bitcoin trading platform that waives fees for trades over a certain amount. The reasoning behind this is that the more you trade, the less impact each trade will have on your funds. Bitcoin Code is one such trading platform that you must use for a better trading experience.
You are purchasing Bitcoin with fiat currency, and you are using the services of a trustworthy fiat-to-crypto exchange to buy Bitcoin with your hard-earned dollars. This means greater security for yourself and your Bitcoins since you do not have to worry about exchanges being hacked. However, there is a price premium when buying through a fiat exchange, which also means that there’s typically less liquidity available at the cost of lower volatility.
Does it provide secure storage of Bitcoins? Secure sites are better for trading large quantities of bitcoins because there is less risk of being hacked or having your bitcoins drained by others. Sites with good reputations usually have fewer problems. The first reason to use a secure site is safety. You don’t want to be the victim of hackers, so take this pretty seriously.
They will steal all your money! No kidding – Bitcoinica has been hacked multiple times in its existence, and MtGox had numerous problems before they were hacked for hundreds of thousands of dollars sometime last year (no one knows exactly when). Hackers are everywhere on the internet, including the Bitcoin world.
This one is so important. It can be the difference between a smooth transaction and getting robbed blind! If you’ve not heard of the exchange, google them and do some quick research. See what others say about their experience using that exchange. What type or level of complaints did they have? Check into that! This should be one of your top priorities when choosing an exchange to use for trading bitcoins.
Bitcoin trading platforms do everything to keep their client’s funds safe. Some use insurance policies to cover the loss in case of incidents. In contrast, others only state that the server is secured by professionals but never detail what kind of insurance coverage they have. Unless you’re dealing with entities that don’t have it, insurance is a good thing. I highly recommend choosing a platform that states publicly that their users’ funds are insured.
The Bottom Line
Bitcoin trading platforms are mediums where users can buy and sell Bitcoins, so they are extremely important in the cryptocurrency world. Your choice in trading platform should depend largely on your experience with cryptocurrencies, and picking out one that caters to your specific needs could end up saving you money in the long run.