To reach our conclusion, we have taken into account some key factors. The reason why the confidence of the users is high or low, the commercial characteristics, the international accessibility, the cost, and the speed, have all determined our selection. After that, you will have the appropriate information to choose the best platform to trade online. Therefore, below we will see which are the most important points to consider before choosing a Bitcoin exchange platform.
In these times there are a large number of websites intended for the exchange of Bitcoin. This is because an increasing number of people arouse their interest in cryptocurrencies. However, the vast majority of new users do not have adequate information to operate efficiently.
When we talk about a Bitcoin exchange we are referring to a website that specializes in buying and selling cryptocurrencies. These are online markets where a large number of people throughout the world can trade in real-time.
Each of the Bitcoin exchanges matches supply and demand. This means that sellers and buyers are the ones who determine the price of each Bitcoin or Altcoin token. Specifically, buyers are those who pay what they think they should pay.
These purchases are made concerning the number of Bitcoins that are available in the market at any given time. So there are exchanges of Bitcoins and other cryptocurrencies throughout the world. Some of them have international audiences, while others are only regional.
On the one hand and in certain countries in Europe, the number of searches and trends in Google for Bitcoin grows every day. Specifically, words like Bitcoin and cryptocurrencies have grown tremendously from 2017 onwards. This shows a huge interest in the industry, and that’s understandable given the whopping levels of profit Bitcoin managed to generate for some of its holders.
However, not all Bitcoins exchanges work the same way. Some of them accept crypto only, while others also incorporate fiat currencies. At the same time, there are other markets where Bitcoins are not bought or sold.
While a few Bitcoin exchanges are under a regulatory framework, the vast majority of crypto is unregulated. However, those platforms that offer cryptocurrency exchange are good as long as they offer excellent user experience and security.
This includes protecting the data and deposits of each user, offering the best features expected of this type of site, and of course complying with the law.
Broadly speaking, there are two main types of Bitcoin exchanges. You can find decentralized and centralized ones. This means those that do not accept fiat currency as payment, that is, decentralized, and those that do, centralized.
In other words, a fiat currency is money that a certain country or government issues. Some of them are the United States Dollars, the British Pound, or the European Union’s Euro.
When we refer to centralized Bitcoin exchange we must mention that these sites offer limited services. Although in compensation, a high level of protection is offered for each investor. In the same sense, also another positive point is that each of the strict regulations is complied with.
When referring to decentralized Bitcoin exchanges we must mention two disadvantages. Almost no regulations are complied with, so investors are more unprotected. However, a positive aspect is that these sites offer a wide variety of services.
By the time a novice user comes across these two concepts, they might be a little confused. Even the most experienced users may not consider all the differences between the two. So below we can mention how a Bitcoin exchange differs from a broker.
In the case of exchanges, the specific trading platform acts as a judge. This means that it fulfills the role of intermediary between the seller and the buyer. In this way, the Bitcoin exchange aims to achieve a fair exchange between those.
This happens since the people who buy and sell are usually in different parts of the planet. That is why the most trusted exchange sites comply with certain specific regulations.
On the other hand, a broker also works as an intermediary but in a different way. In this case, buyers and sellers do not have cryptocurrencies in their possession. Each of the trades goes through a secure trading platform enabled for the popular derivatives known as CFDs or Contracts for Difference.
The trading platform provides a level of security and regulation for each of the parties. After that, the platform acts as a broker and performs a fair exchange for each of the parties. An example of this is the eToro platform, which acts as a Bitcoin broker, apart from being a Bitcoin exchange.
In this way, choosing a broker can offer certain benefits for the investor. That’s how the investor has greater knowledge about the lows and highs of cryptocurrencies. This information from the broker allows fairer exchanges between buyers and sellers.
In conclusion, contracts for difference (CFD) are one of the simplest and best-known methods of trading. In addition to being the fastest, this can be a drawback for novice users who do not have adequate information.
By having CFDs, each user will not need to have a Bitcoin wallet, let alone enter Bitcoin transactions that they do not understand. To avoid losing all your money, you should gain experience in these types of transactions.
In other words, if you want to get real Bitcoin you should not go for brokers and their CFDs. You will only need a normal and conventional Bitcoin exchange.
Although there is a large number of cryptocurrency exchanges, in this case, we can mention one of the best options. It is a space for social exchange and commerce with an innovative operation.
When we talk about eToro, we are referring to one of the most popular exchange sites in recent times. It is a social trade broker formed in 2007. Today this site has an important presence throughout the world.
On this site, any user will be able to trade with raw materials, indices, CFDs, currency pairs, stocks, and, of course, with cryptocurrencies. At the time of trading, each of the users has at their disposal the best trading techniques of the best users.
Regulated PlatformVariety of CoinsAvailable via App
when trading CFDs with this provider
That is why it is a social trading platform since any user can operate in the same way that professionals do. Also, this platform has the most important licenses and authorizations in each region.
It is regulated and authorized by the Financial Conduct Authority, or FCA, from the United Kingdom. It is also licensed by the Cyprus Securities and Exchange Commission (CySec) established in Cyprus, and also by the Australian Securities Investment Commission (ASIC), established in Australia.
Today this exchange site has compatibility with more than 15 cryptocurrencies. So we can find Bitcoin Cash, Dash, Litecoin, Ethereum, Bitcoin, and others.
Besides, it accepts a large number of payment methods. So depositing money once an account is created is very simple. Among the most common options, you can find the possibility of using a credit or debit card, PayPal, among many other options.
At this point, we can mention some of the most important characteristics that a good Bitcoin and cryptocurrency exchange must include.
Just as there are advantages in some places, there are also some signs of a scam that it is recommended to avoid. So by keeping the following points in mind, you will be better protected against all kinds of scams.
There are a large number of cryptocurrencies that are in operation today. Of course, it is not worth trying to check the proper functioning of each of these. Many of them present considerable risks to users. An example of this is hacking or fraud that is always present.
This causes many of the beginners to lose all their money in their first operations. So it is always advisable to check the legitimacy of each of the sites before depositing money in the account.
Beyond this, after reading this article, you will have the appropriate information to avoid all these common drawbacks. In turn, you will be able to learn how to trade online efficiently over time.
On the other hand, by understanding the workings of the best Bitcoin exchanges, you will learn how to generate extra money. It is an increasingly popular type of investment among investors.
Once you follow these tips, becoming a better and more successful investor will be easier every day. This includes increasing the chance of boosting your profits in a short period.
Disclaimer: Please note that the articles, news, reviews and all the content of this website should not be considered as a trading advice. The nature of investing is speculative and there is a risk to lose the invested capital completely. When investing seek a professional advice and make your own due dilligence. This site is not intended for use in countries where trading and investing is prohibited. This website is free for you to use but we may receive remuneration from the companies we feature on this site.