Bitcoin transaction process
Choosing the best Bitcoin exchange can be an exhausting task. This post will explain the important factors to take into account when choosing a Bitcoin exchange. I will also give you a review summary of the leading Bitcoin exchanges.
Bitcoin Exchange process Summary
The main things to look for when choosing an exchange are: What type of exchange is this? (Broker, trading platform, etc.) Does this exchange have the coins I want to trade? Does this exchange accept users from my country? Does this exchange accept my payment method? What are the fees and buying limits for the exchange?
※ What type of exchange is this? (Broker, trading platform, etc.)
※ Does this exchange have the coins I want to trade?
※ Does this exchange accept users from my country? Does this exchange accept my payment method?
※ What are the fees and buying limits for the exchange?
Finally, before deciding on an exchange make sure to read several online reviews to get a feel of the exchange’s reputation. Here are my top picks for the best Bitcoin exchange by category: NabobTrade cryptocurrency exchange.This exchange covers major countries in the world and also has Trading platform, Broker and P2P platform services.
If you want a more detailed explanation about Bitcoin exchanges and reviews about other exchanges keep reading this post. Here’s what I’ll cover:
1.How do You Trade Bitcoins for Cash or Real Money?
2.Types of exchanges
3.What is the Best Bitcoin Exchange?
*Accepted payment methods
- How to Convert Bitcoins to Real Money/Cash?
Bitcoin exchanges are companies that allow you to exchange “real money” (i.e. USD, EUR, GBP, etc.), also known as fiat money, to Bitcoin (and vice versa). This means you can either covert fiat to Bitcoin or Bitcoin to fiat. This is usually done via a website the helps you facilitate this trade.
- Exchange types
It’s important to understand that not all Bitcoin exchanges are alike. Some allow you to trade with other users, while other will only sell you Bitcoins directly. Some will not even give you Bitcoins but will only allow you to speculate on the price. Let’s break down the different types of exchanges.
Brokers are sites that simplify the buying process by allowing you to buy coins through them directly at a predetermined price. When you buy from broker sites, the process is usually much simpler and less confusing, but it’s also more expensive. Examples of known brokers: NabobTrade.
Trading platforms are sites that automatically connect buyers and sellers. This means that you buy from people who’ve placed sell orders on the site without ever communicating with them directly. The platform usually takes a small fee for the service.
Conducting transactions on trading platforms is usually the cheapest way to get bitcoins, but often it’s not very user friendly. Trading platforms have options such as limit orders and stop losses that can confuse inexperienced users. Also, when you place an order, it may not be fulfilled immediately due to a lack of sellers at the price at which you want to buy. Examples of known trading platforms:Nabobtrade.
P2P (Peer-to-Peer) platforms connect buyers and sellers directly so they can negotiate on a price. While these sites usually allow for a wider array of options (payment methods, supported countries, etc.), they also hold a large amount of risk because you’re buying from an anonymous individual. Examples of P2P platforms: Nabobtrade.
3. What is the Best Bitcoin Exchange?
NabobTrade is one of the oldest Bitcoin brokers around with very responsive customer service. The company allows you to buy and sell Bitcoins and other cryptocurrencies through the use of a credit and debit card, SWIFT or SEPA transfer. Their services are available worldwide with the exception of a few countries.
4. Exchange Terms
Next, you’ll need to enquire on the different terms on each exchange. Here are the most important ones:
Coins supported: Does the exchange support the type of coin you’re looking to buy and sell. What currency pairs does it offer for that coins (i.e. what coins can you trade it for). For example, an exchange offering a BTC/USD currency pair supports the buying and selling of Bitcoins for US Dollars.
Countries supported: Make sure the service is available in your country. Not all exchanges accept customers from all around the world.
Accepted payment methods: Some exchanges accept a wide variety of payment methods, while others accept only wire transfers. Payment methods that allow a buyer to request his or her money back, such as credit cards or Paypal, will usually involve higher fees. This is done to insure the seller in case you’ll cancel the payment after you get your coins. As you might expect, payment methods that can’t be reversed, such as wire transfers, are usually cheaper.
Fees: There are three kinds of fees. Deposit fees, transaction fees, and withdrawal fees. Each fee is usually different and can affect the total amount of money you’ll receive in the end. Make sure you’re aware of all of them.
Exchange rate: Some exchanges have low fees, but their exchange rates are higher relative to the competition. This means that the fees are sort of “hiding” in the exchange rate. This is more typical with brokers.
Buying limits: Your buying limit will depend on your payment method and your identity verification level. If you’re looking to buy a large amount of bitcoins, some exchanges might not be relevant due to their low limits.
Exchange reputation: Is the exchange well known in the community? How well is its support in the event you get lost in the process? Have there been a large number of complaints against the exchange? Has it been hacked in the past? Keep in mind that no exchange is free of negative reviews, but it’s important to consider the volume and the content of those reviews.
Exchanges today have a Know Your Customer process, also known as KYC, that you’ll have to go through before buying bitcoins.
This means you’ll need to supply the exchange with some additional information, such as your ID, a proof of residence, and in some cases even a proof of income. As Bitcoin becomes more and more mainstream, exchanges are subject to strict regulations by the government, and in many cases, they’re unwillingly forced to request this information from you.
This is not something personal and will probably be required by most legit exchanges. In fact, if an exchange doesn’t request this information I’d be suspicious.If you want to maintain your privacy, you can contact us to learn how to buy Bitcoin anonymously.
You now know the most important aspects to look for when choosing your Bitcoin exchange. In the end, the main thing that matters is that the company (or seller) is reliable and that you’re happy with the price you’re paying. Sometimes it’s worth it to spend a bit more money in order to finish the process hassle-free.
Personally, here are my top picks for Bitcoin exchanges by categories: NabobTrade cryptocurrency exchange.
If you’ve have any good or bad experience with the exchanges listed above, or any other exchange I’d love to hear about it in the comment section below.
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