CoinDesk
To trade Bitcoin securely and keep your coins protected, it is essential to use a trusted cryptocurrency exchange platform. You might have a good tool such as a Bitcoin bank breaker, but without a good platform, you can’t trade comfortably.We have found and compared some leading platforms, so you know you are making the right choice.
What are the best Bitcoin exchange platforms?
We have compared some Bitcoin exchange platforms that exist to find the best one. Plus, we’ve thoroughly reviewed them to make sure you can find the right platform for you. For us, the best are Wirex, Bittrex, and Binance. In this article, we will not discuss them by describing every feature they have. Come on! You can see that information in many other sources. We will only compare what they offer in terms of what is important to us.
What is a Bitcoin exchange platform?
A Bitcoin exchange platform is a marketplace where you can buy and sell Bitcoin. On-exchange platforms or markets, you can quickly and easily exchange fiat currencies (e.g., GBP and USD) for cryptocurrencies and trading different cryptocurrencies with each other. Some exchange platforms, such as Wirex, are built with a user-friendly interface, making them attractive to beginners. While other platforms, like Bittrex and Binance, have a more advanced interface for more experienced traders.
How do exchange platforms work?
There are two main ways to trade Bitcoin on an exchange platform:
Market Orders. With a market order, you can buy or sell Bitcoin at the best price currently available on the exchange platform. Since buying is usually instantaneous, market orders are the fastest way to buy and sell Bitcoin.
Limit Orders. With a limit order, you set the price at which you want to buy or sell your coins, and the transaction is done automatically when Bitcoin reaches that price. If you think Bitcoin’s value is going to drop, then you can set a limit order to buy at a lower price and get more for your money.
How to use a Bitcoin exchange platform
To use an exchange platform, you first have to set up (and usually verify) your account. Once you have done so, you can link your card to that account or recharge it by paying directly into it. After doing this, there will be an option to buy Bitcoin – choose your payment method and buy the coins.
Depending on your preferred purchase method, the period during which your account will be credited will vary. For example, exchange platforms like Wirex instantly credit your account when you buy Bitcoin using a credit card, but it can take 3-5 days to use bank transfer.
What should I look for on a Bitcoin exchange platform?
There are a number of factors that must be taken into account when choosing the exchange platform to be used, including:
Accepted payment methods
Not all exchange platforms accept the same forms of payment. Most will accept credit cards and bank transfers, but some like Binance and Bittrex will only allow you to trade with different cryptocurrencies.
Design and ease of use
An important consideration when choosing an exchange platform is the design quality of the site. For example, Wirex comes with an easy-to-use interface to help beginners buy and sell Bitcoin. At the same time, other sites like Binance are designed for more advanced users, displaying complicated charts, tables, and cryptocurrency prices, and allowing different trading tools. You want to focus on buying the coins, not figuring out how the site works, so find a comfortable trading platform.
Do I have to verify my account on the exchange platform?
Yes, you will have to verify your identity when you sign up for an exchange platform. You will usually be asked to provide 2 forms of identification (such as a passport or driving license) and often a selfie in which you are holding one of the required documents to be able to prove that it is yours. Platforms like Bitstamp and Bitpay may also ask you for other verification documents such as bank statements or utility bills to confirm your address.
Are Bitcoin exchange platforms safe?
Bitcoin exchange platforms have many security features, but they are a great target for online attacks. There have been cases in which some trading platforms were hacked, and many cryptocurrencies were equivalent to millions of pounds sterling stolen by hackers, as in the case of the trading platform Mt Gox in 2014. Therefore, it is not recommended to store more than a small amount of Bitcoin at the same time in the account of these types of platforms. Instead, transfer your coins to a personal cryptocurrency wallet to keep them safe.
If you buy a large number of coins as a long-term investment, consider using a hardware wallet or a paper wallet for added security. If it is a small amount that you intend to access regularly, then the ideal option would be to get an online wallet.
What happens if I forget my password?
This will depend on the platform. Usually, the Bitcoin exchange markets will have steps to reset a forgotten password through the email address/security questions that you registered when setting up your account. Just choose to reset your password, and a link will be sent to your email address to help you set up a new one. Your exchange platform account has access to your Bitcoins, so it is important to choose a strong password that is not easy to guess.
How fast are the transactions on the Bitcoin exchange platforms?
For the most part, transactions on the Bitcoin exchange platforms are instantaneous. As soon as you make the payment, the purchased Bitcoin units will be in your account immediately to trade. This is not necessarily when you transfer your Bitcoin units between the exchange platforms, which will take a little more time since it has to be verified on the blockchain. Exchange platforms like Binance will credit your account after two blockchain confirmations, which may take a few minutes.
If you place a limit order, the transaction will only occur once the Bitcoin reaches the value you have selected to buy/sell. At this point, however, the speed of transactions will be the same as that of market orders.
What payment methods can I use to buy Bitcoin on the exchange platforms?
This depends on the exchange platform to be used. Debit cards and bank transfers are usually the most widely used payment methods. Some exchange platforms also accept credit cards or PayPal payments, but this is less common. If you use an exchange platform that supports many different cryptocurrencies, you can also use your other currencies like Litecoin or Ether (Ethereum’s cryptocurrency) to buy Bitcoin and vice versa.
Do exchange platforms charge fees for buying and selling Bitcoin?
The exchange platforms will charge fees for making transactions, especially if you buy your coins directly with your card. Typically these will be between 1% and 5% depending on the platform, the payment method, and how much you are spending. If you intend to trade a large amount, you will surely pay less commission than a smaller number of currencies.
