Cryptocurrency as you already know is an online currency that was first developed by Satoshi Nakamoto an unidentified man or group till date.
The most popular crypto-currency at the moment is a known as Bitcoin. It is one currency which is widely accepted the world over. Bitcoin is not a physical currency, it is a currency that is stored online and sometimes on hardware tokens, it can be traded for physical cash in local currency.
If you are new to Cryptocurrency one of the challenge that you are going to face is where to buy and sell Cryptocurrency. In fact, this was one of the challenges that I encountered when I was first introduced to Cryptocurrency.
What is cryptocurrency trading platforms?
Cryptocurrency trading platforms are websites where you can buy, sell or Exchange cryptocurrencies for other digital currency or traditional currency like US dollars or Euro.
For those that want to trade professionally and have access to fancy trading tools, you will likely need to use an exchange that requires you to verify your ID and open an account.
There are three types of cryptocurrency trading platforms and they are as follows.
- Trading Platforms: These are websites that connect buyers and sellers and take a fee for each transaction.
- Direct Trading: These platforms offer direct person to person trading where individuals from different countries can exchange currency. Direct trading exchanges don’t have a fixed market price, instead, each seller sets their own exchange rate.
- Brokers: These are websites that anyone can visit to buy cryptocurrencies at a price set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers.
The questions that you may ask yourself right now is how do I know good cryptocurrency trading platforms? The following that is written below are the things that you must have to put into consideration before joining any cryptocurrency trading platforms.
What you have to Consider Before Joining any cryptocurrency trading platforms
- Reputation: The best way to find out about an exchange is to search through reviews from individual users and well-known industry websites. You can ask any questions you might have on forums like BitcoinTalk or Reddit.
- Fees: Most exchanges should have fee-related information on their websites. Before joining, make sure you understand deposit, transaction and withdrawal fees. Fees can differ substantially depending on the exchange you use.
- Payment Methods: What payment methods are available on the exchange? Credit & debit card? wire transfer? PayPal? If an exchange has limited payment options then it may not be convenient for you to use it. Remember that purchasing cryptocurrencies with a credit card will always require identity verification and come with a premium price as there is a higher risk of fraud and higher transaction and processing fees. Purchasing cryptocurrency via wire transfer will take significantly longer as it takes time for banks to process.
- Verification Requirements: The vast majority of the Bitcoin trading platforms both in the US and the UK require some sort of ID verification in order to make deposits & withdrawals. Some exchanges will allow you to remain anonymous. Although verification, which can take up to a few days, might seem like a pain, it protects the exchange against all kinds of scams and money laundering.
- Geographical Restrictions: Some specific user functions offered by exchanges are only accessible from certain countries. Make sure the exchange you want to join allows full access to all platform tools and functions in the country you currently live in.
- Exchange Rate: Different exchanges have different rates. You will be surprised how much you can save if you shop around. It’s not uncommon for rates to fluctuate up to 10% and even higher in some instances.
Best cryptocurrency trading platforms | Best Website to Buy and Sell Bitcoins
Here is the list of the top Best cryptocurrency trading platforms that you need to join.
Coinbase – www.coinbase.com
Coinbase is one of the best Website to Buy and Sell Bitcoins. The reason it’s so popular is because of the method of doing business it has adopted, which is ‘dollar cost averaging’.
When you use Coinbase, you are going to be able to automate the purchase of your bitcoins for every week or every month. It’s a pretty easy platform to use whenever you’re just getting started out with bitcoin buying and selling.
However, if you are going to be performing any dubious activities that are in the gray zone of bitcoins, then you might want to watch out for this site as they are pretty strict about their policies. The company that runs Coinbase is very particular about what kinds of activities can happen on this exchange.
Coinbase is not yet available in some countries so before you join do make sure to check if they operating in your country.
LocalBitcoin – www.localbitcoins.com
LocalBitcoin is a P2P Bitcoin exchange with buyers and sellers in thousands of cities around the world. With LocalBitcoins, you can meet up with people in your local area and buy or sell bitcoins in cash, send money through PayPal, Skrill or Dwolla or arrange to deposit cash at a bank branch.
LocalBitcoins only take a commission of 1% from the sellers who set their own exchange rates. To ensure trading is secure, LocalBitcoins takes a number of precautions. To start, the platform rates each trader with a reputation rank and publicly displays past activities.
Also, once a trade is requested, the money is held on LocalBitcoins’ escrow service. After the seller confirms the trade is completed the funds are released. If something does happen to go wrong, LocalBitcoins has a support and conflict resolution team to resolve conflicts between buyers and sellers
Best cryptocurrency trading platforms | Best Website to Buy and Sell Bitcoins
CoinMama – www.coinmama.com
CoinMama is a veteran broker platform that anyone can visit to buy bitcoin or Ether using your credit card or cash via MoneyGram and the Western Union. CoinMama is great for those who want to make instant straightforward purchases of digital currency using their local currency.
Although the CoinMama service is available worldwide, users should be aware that some countries may not be able to use all the functions of the site. CoinMama is available in English, German, French, Italian and Russian.
BitStamp – www.bitstamp.net
BitStamp is the first licensed operator of Bitcoin. You would be surprised to hear that this exchange has been running for a full 5 years already, so it’s very reputable in that sense. With this exchange, you are going to be able to use your credit or debit card to do bitcoin exchanges, which is a huge plus for many buyers and sellers out there.
Another really huge advantage that comes with BitStamp is the fact that you can take out your bitcoins for actual, physical gold! That’s right, you’re going to be able to take out your bitcoins and receive actual gold in return. That’s perfect for those of you who are into keeping gold around for the rough economic times we might hit.
Kraken – www.kraken.com
Founded in 2011, Kraken is the largest Bitcoin exchange in euro volume and liquidity and is a partner in the first cryptocurrency bank. Kraken lets you buy and sell bitcoins and trade between bitcoins and euros, US Dollars, Canadian Dollars, British Pounds and Japanese Yen.
It’s also possible to trade digital currencies other than Bitcoin like Ethereum, Monero, Ethereum Classic, Augur REP tokens, ICONOMI, Zcash, Litecoin, Dogecoin, Ripple and Stellar/Lumens. For more experienced users, Kraken offers margin trading and a host of other trading features. Kraken is a great choice for more experienced traders.
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