Trading Bitcoin has some peculiarities: in order 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 a vendor with the title “Best Bitcoin Broker”?
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, it becomes apparent that alternative investments may be the better choice – and here, of course, Bitcoin is one of the first to be considered.
There are, however, a few things to consider when buying and later selling lucratively. 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 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 their probity. A special aspect of trading with Bitcoin is the fact that buying and selling is possible anonymously – which has advantages, but of course also carries risks.
Best Bitcoin Margin Trading Broker: Look for 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 may be advisable 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 stock exchange?
- How does the customer service react to inquiries?
- At what speed are credits issued?
- Trading on the move: App or mobile website is an advantage
Today, most website visits are made via smartphone – accordingly, trading with Bitcoin should be possible very conveniently via mobile devices. 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 mobile optimized 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, or permanent residents from there.
In many cases, it is still possible to use them, but it is by no means recommended. The broker can block the account at any time. For this reason alternatives should either be sought or the account is only used for buying before the Bitcoins are transferred to a secure wallet. If you are from the US you’re from one of the most restricted countries when it comes to bitcoin trading on margin, especially regarding higher leverage. Possibilities can still be found on TheMargin.
Anyone who transfers money to receive Bitcoin obviously 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. 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 at this point, here it depends on the requirements of the user whether this 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. The only exceptions are actually only when a large number of different currencies are traded or when CFD trading is possible and the user can view a variety of different data.
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 deposit is required: this can be done either via credit card or a payment service provider such as Neteller or Skrill. The latter have the principal advantage that the deposit can be made anonymously. So if you attach particular importance to ensuring that the already anonymous Bitcoin trade is not revealed by the deposits, you should prefer these methods.
Finding a Bitcoin Broker that offers such a payment method for deposits should not take long – both payment service providers are well established, especially in international transactions. International transactions are also the keyword for the next criterion: it is by no means self-evident that the platform is also available in your language, if it’s not English. Whether this is a significant disadvantage must be assessed by each user individually – trading in English is of course possible without any problems.
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 regulation. For most private users, such regulation is 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, competently and in English. The fact whether this requirement is met is again closely linked to the image of the exchange. Bad 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 possible as quickly and easily 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 unauthorized access. For beginners, probably of little interest to experienced users, limits could possibly be reached: some exchanges have a buy and sell limit, but this is usually more than $10,000 per week.
Speaking of security, this article about trading with VPN might be interesting for you if you consider starting to trade or if you want to trade on a geo-restricted broker for some (hopefully legal) reason.
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. Often, gradually falling prices make it necessary to react quickly. So it is not very appropriate for trading to be restricted because of 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 connections to be broken or servers to become overloaded.