Trading Bitcoin has some peculiarities: in order to be able to buy or sell the cryptocurrency, it is not enough to simply perform an automatic buy or sell transaction. The trade must be placed on a special platform, which means that the conditions also differ significantly. How to find the best Bitcoin trading platform; what distinguishes the best Bitcoin Broker from competitors?
Bitcoin Trading 2020: Which one is the best Bitcoin trading platform?
At the latest since Bitcoin experienced an impressive performance in 2017, the cryptocurrency has become a serious alternative to conventional investments. In times of low interest rates on the capital market, alternative investments may be the better choice – and here, of course, Bitcoin is first and foremost among them.
There are, however, a few things to consider when buying and also later selling lucratively. For unlike the name “cryptocurrency” suggests, it is not an ordinary currency that can simply be bought and sold again.
Instead, a sale is placed on a Bitcoin trading platform and a prospective buyer then responds to this offer to sell. The platform charges a transaction fee for this, which should of course be as low as possible in the interest of both buyers and sellers.
In addition, the platform should check the sellers in particular in advance to ensure that they are honest. A special aspect of trading with Bitcoin is the fact that buying and selling is possible anonymously – which has advantages, but of course also involves risks.
Anyone who transfers money to receive Bitcoin, of course, does not want to take the risk that this expenditure might have been for nothing. In addition, the trading marketplace should of course offer a wide range of products so that buyers for your own Bitcoins can be found or there is a sufficient supply.
With smaller suppliers, there could now be a risk that the overall supply would be too low and that trading would come to a standstill.
Different Payment Methods
As mentioned above, when buying a cryptocurrency, it is not easy to convert a conventional currency into one of the digital currencies. In any case, a method of payment is required: this can be done either via the Instant Bank Transfer service, a credit card or a payment service provider such as Neteller or Skrill. The latter have the basic advantage that the deposit can be made anonymously. So anyone who places particular importance on ensuring that the already anonymous trade in Bitcoin is not revealed by the payments should prefer these methods.
It should not take long to find a Bitcoin broker that offers such a payment method for the deposit – both payment service providers are well established, especially in international transactions.
Availability of Altcoin Trading
In addition, there are of course a number of other criteria that should be considered when asking “Who is the best Bitcoin Broker”:
- – Are alternative cryptocurrencies, so-called Altcoins, available?
- – Is the trading platform clear?
- – What are the deposit options?
- – What are the fees for deposits and withdrawals?
The question of Altcoins should not be extensively examined here, here it depends on the requirements of the user whether it is actually an important criterion. Since the success of Bitcoin, the number of alternative cryptocurrencies has increased rapidly. It is indeed difficult to predict whether other currencies will write a similar success story – and above all, which currencies they will be. Of course, clarity is also a bit of a matter of discretion, but most platforms don’t have any difficulties here. Exceptions are actually only made if a large number of different currencies are traded or if CFD trading is possible and the user can view a wide range of different data.
Best Bitcoin Broker: Pay Attention to low Fees for Deposits and Transactions
The question of fees, however, is quite important: the best Bitcoin trading platform is characterized by the fact that high returns can be generated here. Of course, this only works if the Bitcoin price development is positive, but on the other hand no transaction fees are estimated to be too high. The deposit is mostly free of charge, possible costs for the payout often depend on the payment method. This fact is not only due to the broker, but also to the credit institutions.
Especially with credit cards, it is common that the bank charges a transaction fee, which is then passed on to the customer. For this reason, it can be useful to choose another payment option, especially for higher amounts. The fees for the trading itself are usually in the range of less than 2%. Here, too, more extensive comparisons are worthwhile if larger sums are to be traded.
Some other criteria should also be taken into account when selecting a broker:
- – Is a comfortable use also possible via Smartphone?
- – For which citizens is trading permitted?
- – What about the image of the exchange?
- – How does the customer service react to inquiries?
- – At what speed are credit notes issued?
- – Trading on the move: App or mobile website advantageous
Today, most website visits are made via smartphone – accordingly, trading Bitcoin should also be possible quite conveniently with the mobile device. The larger providers in particular usually offer an app for Android and iOS. If no app is available, however, this does not mean that trading with smartphones or tablets is difficult. Often the websites are optimized for mobile use and adapt to the size of the smartphone.
On the other hand, the question of citizenship should be considered a little more thoroughly: some brokers exclude certain citizens from certain countries, in the case of permanent residence. In many cases, use is still possible, but not recommended. The broker can block the account at any time. For this reason, either alternatives should be sought or the account will only be used to buy before the Bitcoins are transferred to a secure wallet.
Should be noted: Image and Customer Service of the Broker
The reputation of the stock exchange is often linked to its size and whether it is subject to a regulation. For most private users, such regulation is certainly beneficial, but the fees at such regulated exchanges are often a little higher. Image is not a hard factor when choosing a stock exchange, but the experience of other users should certainly be taken into account when choosing a particular broker.
There may always be combinations that require the support of the provider. If possible, the customer service should be able to react quickly and competently. The fact whether this requirement is met is in turn closely linked to the image of the exchange. Poor customer experiences are often due to bad experiences with service. In addition, the credits should of course be made as quickly as possible, which is also not a matter of course,
What else is to be considered
Of course, the registration should be as fast and uncomplicated as possible. However, no compromises should be made with regard to security: ideally, the broker offers a two-factor authentication, which requires a further code in addition to the account data for login. In this way, your own credit balance is particularly effectively protected against unauthorised access.
For beginners, probably of little interest, experienced users could possibly reach limits: some exchanges have a buy and sell limit, but this is usually more than 10,000 euros per week. However, if a larger amount of Bitcoin is to be bought or sold within a short period of time, this aspect should also be considered.
Frequently, gradually falling prices make it necessary to react quickly. So it is not very appropriate for trading to be restricted due to these limits. However, the restrictions may not only be legal, but also technical. The Bitcoin boom surprised not only politicians, regulators and financial markets – but obviously also the Bitcoin brokers themselves. Some portals are often very slow to reach, and it is not uncommon for connection failures or overloaded servers to occur.
Verdict: Your Bitcoin Broker should be carefully selected
There is no general answer to the question of which is the best Bitcoin trading platform. Decisive here are very specific criteria, such as the possibility of trading other cryptocurrencies, profiting from a variety of different payment options or being able to trade so-called contracts for difference. These Contracts for Difference enable the short-term purchase and sale of Bitcoin beyond one’s own budget. The own funds are ultimately only used to deposit a credit security. However, this highly speculative business is associated with enormous risks, which is why it is hardly suitable as a capital investment.