For those who are unaware of what a BTC exchange is, it is an exchange platform of a virtual currency, specifically for the leading crypto of the world, 'Bitcoin'. It operates similar to how the fiat exchanges do, except that they are virtual, while exchanges for fiat exist physically as well in several locations. So, what function does this exchange platform offer? Well, there are several functions which are offered to crypto holders and investors by these exchanges. This platform links buyers and sellers of different crypto, allowing these holders to trade their virtual currencies, in multiple volumes, or even link crypto sellers with buyers, in exchange for regular fiat money. There are many BTC exchanges which operate in several countries around the world. You can search for the most suitable one for yourself online.
There are multiple BTC exchanges across the United States. And it is not just in the States, but also at other locations all across the world. It should be known that the exchange rates may vary on the basis of the differences in the locations of the users and other factors.
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It is really important for you to grasp how these exchanges operate, in order to enhance your trades and amplify your returns on your crypto investments. In this article, we will highlight and discuss the top four aspects to analyze about a BTC exchange before you start using it, in order to benefit the most while not facing any form of loss or risks. These aspects are as follows:
1. Guaranteeing Thorough Privacy
If you are seeking to purchase BTC with privacy and a safe or private mean then firstly, you are required to abandon the following approaches;
- Buying BTC through Bank transfer
- Purchasing BTC online using a Credit Card
- Purchasing BTC online using a Debit Card
- Converting your credits on PayPal into BTC
- All the other approaches which demand your personal information
One of the most widespread techniques, granting highest privacy is buying BTC via cash payment, which does not entail any personal information of the trader or investor in most of the cases.
2. You should be aware of the speed with which you can receive your BTC
A good idea for you would be to analyze the urgency with which you require the crypto and compare it with the speed with which the exchange you are using provides you with the BTC. What controls this relative speed of deliverance of crypto to you is the payment mode that the user is using.
According to the opinions of the market analysts and experts, who have firsthand experiences regarding this matter, they suggest that it is the first payment in the beginning which might occur with delays. However, the following transactions are said to be timelier and hence a lot more efficient.
It is noteworthy that one of the fastest ways of acquiring bitcoins is via a bitcoin ATM. It is true that these ATMs are rare at the moment, and being established at an increased pace now. So if there is one near to where you live, you can consider yourself quite lucky, as you can avail the opportunity of obtaining BTC through the fastest way and yourselves, without any intermediary involved.
Nonetheless, a few brokerage firms in the market do provide bitcoins instantly once the individual has paid them via payments like bank transfer or via credit and debit card.
3. Track the Prevailing Exchange Rate in the market actively
It should be known that there is no one official price of BTC in the market. However, there are multiple organizations which are providing bitcoin index on their websites which state the current market price (estimated) of the BTC in the global market, across several exchanges all across the globe.
The function of these indices is that they provide the investors and traders with useful information to conduct crypto trading whilst being well-informed. This allows these investors to make the best trading decisions due to the accuracy of the information available. A good example of a BTC index is The CoinDesk Bitcoin Price Index, which offers an average price throughout multiple exchanges. You can search on the internet to find the prevailing exchange rates and your currency's performance in the global markets.
4. Be aware of the exchange's repute
One of the key concerns you should have before selecting a bitcoin exchange to trade your crypto is whether the exchange is a legitimate platform. What we are implying here is that there have been instances in the past where crypto holders have selected exchanges and put all of their holdings inside that exchange, only to find out that the exchange was a hoax or a scam. This most often occurs due to a lack of research and background check on the exchange before putting in your crypto in that exchange. Therefore, we advise our readers to thoroughly research and do a complete background check on the legitimacy and performance of the exchange prior to their investment in the exchange, as it is vital or else they might end up losing a portion of their crypto holdings, or complete crypto holdings.