Bitcoin uses cryptocurrency rather than fiat currency. Fiat currency means the price value of the cryptocurrency is not directly related to the economy or policies of any single country. It is defined as money declared by a government to be a legal tender. BY law, it is neither convertible to any other thing nor fixed in value. This online trading trades 24/7. The volatility nature gives opportunities for traders to reap quick benefits at any point.
An exchange is where buyers and sellers perform their business dealings. In a similar way, here a buyer deposits USD with the exchange and then he can buy cryptocurrency from the sellers. But unlike the stock market, there is no official exchange for this online trading system. Instead, there are hundreds of many exchanges around the world. As there is no official exchange, there is no official price for cryptocurrency too. Users have many choices and should consider the following factors when deciding on an exchange:
- Regulation and Trust
There are many exchanges all around and some of them that dominate the exchange markets are:
- Bitfinex: It is the world’s number 1 exchange in terms of USD trading volume with about 25,000 BTC traded per day. Customers can trade with such online system without verification. Tether is also cryptocurrency associated with Bitfinex. It is with them that they share shareholders and management.
- Bitstamp: It was found in 2011 and it is one of the oldest exchanges ever. It is the second largest exchange based on USD trading volume with little under 10,000 BTC per day.
- OkCoin: An exchange which is China-based but trades in USD. It is a spot trading service between the currency pairs: BTC/USD, LTC/USD, EUR/USD and ETC/USD. The commission fee is charged for each transaction.
- Coinbase: It is the first regulated exchange in the United States with about 8,000 BTC traded per day. It is the fourth largest exchange based on USD volume. It provides a secure platform for trading. It is free to use but works with transaction fees.
- Kraken: It is the exchange in terms of EUR trading volume at approx of 6000 BTC traded per day. It is currently in the fifteenth position in terms of USD volume.
It is always good to get money with few clicks and without any strain. Using the source available, think wisely and invest your money properly to gain the fruits of quality service.