Since its launch, Bitcoin has been such a phenomenon in the digital world. In the past decade, its prices have reached all-time highs of thousands of dollars. This cryptocurrency has been creating a buzz allover be it social media or the news, creating both popularity and reliability. Bitcoin is user-friendly and choosing to invest in it might be one of the smartest decisions you ever made.
The simplest way to trade Bitcoin is through online exchanges. The following article will inform you about the significant Bitcoin exchanges and their distinctive properties and fees.
Bitstamp is a Slovenian based company which assures you Bitcoins at low cost. All deposits by SEPA are free, when the funds are converted to Euros withdrawals are charged a fixed 0.90€ fee. Bitstamp only offers to trade in Bitcoin versus the US dollar. The firm charges new accounts a basic cost that starts at 0.5%, and it goes down to 0.2% to traders who trade over $150,000 in one month. The spread between bid and ask price ranges between 1 and 2 dollars.
The firm mostly avoids deposit and withdrawal problems which face a lot of Bitcoin exchanges. Due to lack of proper regulation with the popular crypto, many financial institutions are hesitant to involve themselves with its transactions.
If you reside in the US, Coinbase might be the most straightforward and safest way for you to exchange Bitcoin. They act as counter-party to all customers, and this implies that traders buy or sell Bitcoins directly to Coinbase. Simply put, Coinbase is not an exchange. Talking about prices, the buy/sell fee is 1% on top of the buy/sell spread. The bid/ask price for the firm is usually close to Bitstamp, and this is where the firm gets its liquidity. The firm also a limit on the amount of Bitcoin sold or bought within a day. This firm claims to have stored more than 95% of all customer funds offline in banks to prevent theft or loss. US residents can easily link their banks with Coinbase for easy and fast transactions.
This type of exchange might be favored more by forex traders, partially because BTC-E offers its a MetaTrader platform. The exchange comes with an instrument which provides a three to one leverage and the option to short Bitcoin. MetaTrader fees are slightly higher at 0.3% compared to BTC-E’s web interface, 0.2%. The real owners of BTC-E are not yet known, the headquarters of the company is allegedly located in Bulgaria. BTC-E deposit procedure is a little bit complex since cash goes through a series of banks, so you should make sure to be keen on the deposit instructions. As an added advantage, the firm allows deposit and withdrawals from popular e-wallets like Paypal, Ukash, PerfectMoney, and Webmoney.
Other ways of trading forex include:
Buying Bitcoin on auction sites like eBay. Remember cryptocurrencies trade at a premium on eBay because of possibilities of chargebacks and fraud.
Face to face meetups, where you exchange the cryptocurrency with another individual and make profit or loss.