One feature of cryptocurrency is that you can exchange it with real or fiat currency. The fiat currency is the legitimate currency used around the world like US dollars or UK pounds. You can also convert the fiat money into a cryptocurrency like bitcoins. There are various exchange programs online on sites that facilitate the trading of bitcoins. First, let’s see what the types of exchanges are.
See, you can always hire a broker for buying or selling your bitcoins. The brokers charge a specific fee and use a predetermined rate for the exchange you are about to do. This method is a little hassle-free in the sense that you do not have to worry about the whole process of exchanging as that is the headache of the broker.
The broker takes care of all the regulations and there is also less uncertainty given a preset rate is used for the exchange. Several broker sites help you with your buying and selling experience. The only drawback is it is a little expensive due to the agency being involved.
Various online trading platforms let you buy or sell bitcoins without the involvement of a third party such as the Bitcoins Champion platform. These sites run on an automatic robot system that connects the buyer and seller. There has to be no interaction or communication between the buyer and seller.
They just enter their selling quotations and the buyers willing to buy the orders are automatically connected through these online platforms. A small service fee is charged. These sites are very easy to use and let you earn some money as well.
Peer to peer platforms:
These platforms allow the buyers and sellers of bitcoin to talk and negotiate the prices in person. This also allows various payment methods and options to the customers and is globally acceptable. However, you can never really know the buyer or seller as they are kept anonymous.
Next up, it is important and critical to know your terms of exchange for bitcoins. A few important terms are as follow
Now there are different types of coins. Not all the exchanges support all types of coin exchange. So you need to see whether the specific exchange platform you are using supports the coin that you want to buy or sell. Also, see the currency pairs it offers against your coins. Does it work for you? Only then move further with exchanging your fiat to coin or coin to fiat currency.
Availability in your country:
Please see if the exchanges you are using support your country. It should be able to provide you with services in the country you are living in. Many exchanges work on specific regions only and reject customers’ offers if they are not falling in the region. So make sure to use only that exchange that is available in your country or supports your county.
The availability of various payment methods versus acceptability of only specific payment methods varies with each exchange platform. Some accept credit cards and PayPal while some only work on the direct transfer mode. The only concern is that there is less fraud or scam so therefore many exchanges will put high prices on PayPal as the payments are reversible and lower rates for wiring transfer that is usually a more sound method of payment.
Make sure you are aware of the transaction fee as well as any withdrawal fee before exchanging your bitcoins. Some also require an initial deposit fee before making your account as a buyer or seller.
There is a limit as to how much worth of bitcoins you can buy but it depends on the type of exchange platform as well as your payment method. Some platforms require certain identification before allowing you to buy a large number of bitcoins.
The reputation of the exchange:
You must only use the exchange platforms that are reliable and well-reputed in the market. Due to no physical existence and all being on internet space, scams and hacking are the top threats. Therefore, always read the reviews and learn about authentication before using the exchange.
Now you know everything critical you should know before making an exchange for your bitcoins. Choose a reliable platform, learn about trustworthy sellers and buyers, and get the price that you were looking for. Never compromise on authenticity, maybe pay a little higher but always go for a hassle-free process.