Bitcoin’s fame is growing in shockingly exponential rates. At the same time, the market value also keeps fluctuating because of this. That is why a lot of people have been resorting to trading Bitcoin. But before you can do that, there are a lot of things you have to know about Bitcoin and factors to take into account before selecting the right Bitcoin trading platform.
What is Bitcoin?
First, here’s a brief introduction to Bitcoin: simply put, Bitcoin is a kind of digital currency, of which there are many benefits when you use them. Among these is lowered transaction fees and faster transaction speed compared to fiat money. In addition to that, Bitcoin has no centralized authority, such as the central bank, to govern how much Bitcoin is in the market, how much its interest rates are, and other such matters.
Not only can Bitcoin be bought by cash, but it can also be mined. Anyone with a specialized software and computer that is able to crack the mathematical problem will be given Bitcoins. The answer to the mathematical problem is usually a string of 64 numbers.
How Do You Choose the Right Bitcoin Trading Platform for Your Needs?
- Ask Your Family and Friends for Recommendations
Before you shortlist some Bitcoin trading platforms, the first step is to ask your family and friends for recommendations regarding what platform they use if they, too, trade in Bitcoin. By going to them first, you’ll be getting recommendations from firsthand users.
These will be the opinions of people you trust. They’ve tried the platform already and can give you firsthand tips on its advantages and disadvantages. If you don’t have friends or family to ask, then you can research online on what kind of platforms are good for trading Bitcoin. For example, informational resources like bitcoinloophole.info can be a site you can check out.
- Take a Look at the Trading Fees
To choose the right Bitcoin trading platform, you also need to look at the costs associated with the transaction. These costs need to be factored in when you’re crunching the numbers when you trade Bitcoin. Compare the trading fees and commissions from each trading platform. You need to select the platform that charges the least for Bitcoin trading.
Just a word of caution as well: there are some Bitcoin trading platforms that also charge a fee on deposits or withdrawals. So, you also need to watch out for these kinds of charges and try to avoid them. Read the fine print and look out for hidden fees. If you miss out on these, the hidden fees will likely eat up your profit from trading Bitcoin. Worse, it might make you spend additional money and trade at a loss for Bitcoin.
- Check out the Kind of Security It Has
It’s imperative that you make sure that the trading platform where you’ll put in your Bitcoins are secure. Verify the authenticity and security of the platform by doing further research on the security measures implemented. The biggest issue in trading platforms these days is the kind of security they provide. Since everything is online, the trading platform might not be legitimate. It might also pose some security risks depending on the kind of firewalls they have in place.
- Look at the Method of Purchase
The methods of cashing in on Bitcoin trading platforms varies from one platform to the next. You need to make sure that the trading platform you’ll be choosing will give you the convenience in selecting the kind of payment scheme you prefer. For example, there are some trading platforms that allow PayPal, bank transfers, credit cards, or debit card payments to buy Bitcoin. So, before joining any kind of platform, make sure it accepts one of the payment methods that you can do conveniently.
- Check out the User Interface and User-Friendly Features
You will be the one using the Bitcoin trading platform, so it’s imperative that you choose one with a good interface that’s easiest for you to use. Good user experience is usually tied in with good user interface. To be more efficient in your trading, you must make sure that you have an interface that will make it easy for you to trade Bitcoin.
As much as understanding what Bitcoin is, it’s also important to get a trading platform that is right for you. Listed above are some factors and features that you might want to look out for or avoid at all costs. Equipped with these tips, you can now have some help in selecting a trading platform. Of course, you still have to do some research before you begin using the trading platform to ensure that you’re picking the best one for you.