The Best Bitcoin Exchange | Top Ten Reviews

Since its launch in 2008, bitcoin remains one of the most successful and fast-growing alternative currencies. You can now use bitcoins to buy real goods and services. The price of bitcoins fluctuates, and intense trading has a noticeable effect on the currency. Services like Bitstamp, itBits and CEX.IO help you to buy, sell and trade cryptocurrencies. If you want to learn more about digital currencies, check out our Cryptocurrencies review. You can also read articles about several other financial topics.

Bitcoin Exchanges: What to Look For

Bitcoin exchanges all share certain core functionality, but their effectiveness as trading networks can vary greatly as the result of small changes in their design. Here are some key elements to look at when choosing the right exchange.

 Every bitcoin exchange has a slightly different fee structure, designed to suit various usage patterns and cater to distinct audiences. Almost every exchange uses a volume-based fee schedule, where those offering to buy and sell large chunks of bitcoin pay lower fees. Fees express a percentage of the transaction amount and generally cap at around 0.30 percent.

Some exchanges use a maker-taker fee model, where those who place buy and sell orders designed to move the price up or down (makers) pay no fees, while those who accept whatever offers are currently available (takers) pay a fee for the convenience. This ensures that traders are always acting to stabilize the price, keeping it as close to the market average as possible.

 When trusting a bitcoin exchange with your money, you want to ensure that the security measures are top of the line. Almost every bitcoin exchange uses two-factor authentication at the least to protect your account from hijacking, but some exchanges go above and beyond to ensure client privacy and security. Everything from advanced encryption methods to offline, unhackable ledgers, to strict hiring procedures can help make a bitcoin exchange more secure.

Trading & Currencies
 The trading volume of a bitcoin exchange can tell you a number of things about the exchange. It lets you know that many people trust the network with their money, which speaks well of business practices. A larger client base and higher trade volume ensure more equitable trades for all involved because everyone has more potential trade partners. As a rule, bitcoin exchanges with higher trading volume tend to stick closer to the average market value of bitcoin, while smaller networks tend to skew higher. Which currencies a network accepts can also affect its trade volume, as well as its usefulness.

 Almost every bitcoin exchange offers an API, or application program interface, to allow custom software to interface with the system. This allows you to develop advanced tools for managing money automatically without having to do everything by hand. Where bitcoin exchanges vary is in the specific functionality their APIs provide. For example, some APIs have built-in functionality for trading on margin, making them ideal for day traders and other currency speculators.

There are bitcoin exchanges available that trade in different flat currencies and other types of cryptocurrency. Some use enhanced and multiple levels of security, and the trading volume for various exchanges differs, which can affect your ability to buy and sell bitcoins.

Make Profits with Binary Options Systems

Start now

Originally published at