Bitcoin is a popular cryptocurrency as well as an excellent investment. People are earning massive profits by trading bitcoins online. There are several bitcoin trading platforms over the Internet, such as the Bitcoin Billionaire, but with a lack of regulations, it is highly important to be careful while choosing one. You need to consider several imperative features while choosing a bitcoin trading site, and a few of them are mentioned in the following paragraphs.
Choose the right type
When it comes to online bitcoin exchanges, there are several types available on the Internet, but you need to pick the one that perfectly fits your needs and requirements. To make the right decision, you need to know about the different types of bitcoin trading platforms, and a few of them are mentioned below;
Full trading platform
A full bitcoin trading platform is like an online marketplace where buyers and sellers can meet and exchange bitcoins with great ease and comfort. A massive number of users use full bitcoin exchanges, so to keep track of buy and sell orders, they use an order book. An order book is a list in which all the orders made on the exchange are recorded. Full trading platforms are considered to be the best option as they offer fantastic features such as margin trading, special types of orders, custom charts and graphs, etc. if you are a beginner, you need not try this platform for trading.
Brokerage bitcoin exchanges are trading platforms that are highly accessible and easy to use. It allows traders to directly sell and buy bitcoins. The interface of these platforms is quite user-friendly. All you need to do is create an account and verify it by providing some information and documents. Once the verification is done, you are all set to trade bitcoins.
If you want to trade bitcoin while being anonymous, peer-to-peer trading platforms are perfect for you. It allows users to make direct P2P transactions and choose any payment method according to their preference. When it comes to privacy, there is no better option than P2P trading platforms. It allows people to trade bitcoins while being anonymous and so you can sell and buy bitcoin online without revealing your identity. P2P platforms offer excellent privacy and security for your funds.
Check the fees
There are numerous bitcoin trading platforms on the Internet, and each one of them has a different fee structure and charges. So, before choosing a platform for trading bitcoins, you must know the fees charged by it and check if it is reasonable. If you want to trade for the short term, there is no use in paying high fees as you won’t be able to recover it from the profits that you will make. So, if you are a day trader, you must choose a platform that allows you to trade at minimum cost.
On the other hand, if you want to buy bitcoins for investment purposes, which means you want to buy and hold them, the trading fees will have no impact on your profits. In such a case, you need not focus on the fees and charges by the trading platforms. You must try to choose a bitcoin trading site that charges a reasonable and affordable fee, neither too low nor too high.
Private key storage
Some trading platforms offer the users to store their private keys, but while making your decision, you must ensure that the platform stores the key offline. It must offer cold storage for storing the keys as it is more secure and will protect your keys from cyberattacks. It will ensure that even if the trading platform gets hacks, your private keys will be safe as they are stored in offline storage. However, if you trade bitcoins on a regular basis, you must set up your own wallet and avoid using the storage provided by the platform.
Security is highly crucial when you are choosing a platform for trading bitcoins. You must choose an online bitcoin exchange that offers security features such as multi-signature, two-factor authentications, etc. These two security features are significant, and if the platform is not offering them, you must avoid using them.