These days, Bitcoin exchanges are a dime a dozen, with more and more solutions popping up every year hoping to enjoy a percentage of the trading market. With so many exchanges to choose from, including peer to peer, direct to sale and more in between, the decision can be pretty challenging, even for experienced Bitcoin traders. In this post, we’ll be getting to know a little bit more about exchanges and why choosing the right platform can be so important when it comes to the potential for profit.
What is a Bitcoin Exchange?
In the most simple of terms, an exchange is a type of platform whereby traders can sign up, log in and then interact with their peers as they attempt to buy, sell and trade their crypto. Other exchanges exist and these aren’t to be confused with crypto exchanges, because they might deal with any type of asset such as stocks, shares, or even physical products.
Unlike a Bitcoin dealer such as paybis.com which specialises in providing this type of cryptocurrency to its customers, an exchange is where that currency is spent and traded with.
Popular Platforms Have the Most Trades
One of the biggest challenges for a trader is finding a platform that can cater to their needs. Active traders and investors will undoubtedly need options to transact with many peers, and this is why the bigger names on the market can be more convenient.
As is often the case, however, these types of services can be more expensive as the company owners are able to raise their prices because so many people need their services. This is why newer enterprises are being established, in an attempt to provide lower subscription fees to their customers, as well as a growing marketplace to make trades in.
Exclusive or Varied Exchanges
An exclusive exchange is a platform that typically deals with one particular type of currency. For example, a Bitcoin exchange will usually deal with Bitcoin, while a crypto exchange will often cater to a broader selection of cryptocurrencies. There are also exchanges that implement options to trade stocks and shares, as well as numerous other features and assets that can be interacted with.
The decision should be based on the preference of the trader, with some opting for exclusive exchanges and others preferring the versatility of varied solutions instead.
A good Bitcoin exchange should prioritise safety, security, and availability above all else. As far as safety is concerned, measures should be put into place to protect trades from thefts and false sales. Security relates more to the stability of the website, whereby certificates should be in place to block hackers and other unsavoury attempts to steal money or data. Lastly, a website with good availability will remain active even during updates and maintenance, as many traders are global and will want to access their accounts for transactions at any time of day or night. These three features are what any good exchange should possess and anything less than this can be unsatisfactory.
