There are several things to know before investing in cryptocurrencies.
There are several things to know before investing in cryptocurrencies. If you plan to trade on your cryptocurrencies, especially Bitcoins (BTC), you should be aware of all the trading platforms where you can buy and sell your BTC holdings. Here,we bring to you a comprehensive list of the top 7 Bitcoin trading platforms you should consider if you are planning to trade in Bitcoins.
1. Coinbase:
Being one of the most popular cryptocurrency exchanges out there, Coinbase is a great platform for trading in a wide variety of cryptocurrencies, especially Bitcoin. Using the dollar cost averaging method for trading purposes, Coinbase is a great exchange to work with because it allows users to take the aid of automation features to effect buying and selling of BTC. In Coinbase, as standard practice, the buying limit is initially kept low and raised eventually once one becomes a frequent traders. The upper limit may also vary from trader to trader based on nationality, residence, citizenship type etc.
2. Cex.io
Cex.io has a nearly universal presence and addresses the needs of all markets that are active in Bitcoin trading. It has also made its services available for other untapped markets. One can purchase and sell Bitcoins over here by means of debit cards or credit cards. In addition, one may also choose to make a bank transfer of the amount or deposit cryptocurrencies of an equivalent amount. This trading platform implements a “maker-taker” system where a person who gives the liquidity (maker) is granted a fee exemption or rebate while the taker of that liquidity is required to bear the entirety of that transaction fee. With a secure algorithm in plays, Cex.io also offers Bitcoin security as one of its USPs.
3. LakeBTC:
This is also widely considered to be a reliable Bitcoin trading platform as it offers great security and competitive transaction fees. What sets this trading platform apart is the fact that it supports a very large variety of currencies. Most national currencies are supported and accepted which makes it easier for people from various regions to make use of its services. Unlike the Cex.io platform, LakeBTC uses a trader-maker model. In this system, the trader is required to pay a fee that amounts to 0.2% of the transactions while the maker’s fee changes depending on the volume of transaction.
4. LocalBitcoins:
This trading platform is unique because it functions just like eBay does, but with respect to Bitcoins. On this platform,you are linked with buyers and sellers of Bitcoins who are ready to accept payments in a variety of ways, including the use of PayPal. While the prices vary from the usual market price because of the subjectivity involved, it is a great way to make use of more options when it comes to buying or selling Bitcoins. LocalBitcoins offers a wallet for storing your BTC holdings and also acts as an escrow service as well. As an escrow service, it acts as a neutral third party holding on to funds before stipulated deal obligations are met.
5. Kraken:
This is another of our top 5 cryptocurrency exchanges that are so trusted among users and investors for the ease and convenience offered. Kraken offers a number of useful pairings and supports several currencies. It also ensures sufficient security by making use of two encryption algorithms (PGP and GPG) and allowing users to use 2-Factor Authentication (2FA) and even an optional Master Key to secure transactions. This platform allows leveraged trading with a shorting limit of 5x. In terms of fees, it follows a tiered structure where the more you trade, the lesser you pay in terms of fees.
6. Bitquick.co:
If you have been looking for another option to trade Bitcoins like LocalBitcoins, Bitquick.co is your answer. It offers an escrow service as well and links you up with prospective buyers and sellers. While it requires a higher degree of due diligence than a crypto exchange, it makes up for it by offering a wide variety of options. Users get to deal with real people like themselves and pay using a variety of means. The easy-to-use interface only sweetens the deal further.
7. BTC-E:
This trading platform enjoys a very high trading volume that only points to its popularity. With the 2FA system introducing an added layer of security to your transactions, BTC-E allows you to exchange your BTC holdings for a wide variety of payment options ranging from debit cards and other cryptocurrencies to less common payment options such as Webmoney, Ukash etc. One of its key features is that it offers a chatroom for letting buyers and sellers talk to each other before finalizing a deal. BTC-E also allows for 3:1 shorting for leveraging in BTC trade.
Trading in Bitcoins is not easy, but with so many platforms to choose from, it can become slightly easier to make a trade. If you’re looking to buy Bitcoin in exchange for PayPal and LocalBitcoins and Bitquick.co are not enough choices for you, don’t forget to have a look at our article that tells you how to buy Bitcoin with PayPal for more options.