The story of the world’s number one cryptocurrency has been long and winding, and the best place to buy Bitcoins at any point in time has fluctuated.
In the earliest days of Bitcoin’s use, a limited number of relatively small exchanges and brokerages were dotted throughout the internet and provided traders and enthusiasts with simple options for buying, selling and trading.
A list of the best places to buy bitcoins and other cryptocurrencies can be found at BitcoinSocially:
Today the cryptocurrency market has grown to include over 200 separate exchanges alone, and dozens of Bitcoin brokerages and platforms providing similar services.
What was once a loosely-connected group of basic trading platforms, has now grown into a network of cutting-edge crypto access points, with trading volumes of up to $1billion per day.
But what is it that separates the best places to buy bitcoin from the rest of pack? Why do some exchanges see millions of users per year and growth rates that would make any tech startup dizzy, and others effectively dissolve and fade into the history of digital currency?
Crypto-asset markets are similar to traditional stock and financial asset markets in many ways. One of the distinctions between the two is that reputation isn’t just a sales tactic for crypto platforms — it’s the difference between growing to be more profitable than the 148-year-old Deutsche Bank within 1 year of operating, and getting zero traction, never to be heard of again.
Exchanges and brokerages within the cryptocurrency industry are acutely aware of the importance that reputation has, because unlike regulated financial platforms, opportunities to rip off users have been taken by malicious exchanges in the past.
Nowadays, this has meant that users have become much more diligent when selecting cryptocurrency exchanges to trade on, and developing a reputation for professionalism and trustworthiness has seen some of the largest players in the industry build loyal long-term userbases.
The range of traders using exchanges spans from high-level institutional hedge funds and investment banks conducting algorithmic trading, all the way down to retail investors with limited experience in trading previously.
In order for the best exchanges to be as effective in the services they provide as possible, they’ve had to be technological superior to their lesser competitors and provide services that allow for all user-types to be able to profit when using their platform.
Maintaining high-percentage and constant up-times, allowing for industry-grade trading through APIs and implementing many other technical features (which I’ll cover next) have meant that the best exchanges have ensured a high quality services for their users.
When handling funds of any kind online, security is important. But when dealing with thousands and millions of dollars of funds, and while being in an environment that is known for active attempts by hackers/scammers to relieve users of those funds, security is absolutely paramount.
Exchanges generally have many access points where hackers can try to exploit the system, and successful hacks on exchanges have occurred sporadically throughout the last decade.
Exchanges implement measures to protect their traders using technologies such as cold-storage, 2FA authentication, KYC and other identification methods, and other advanced ways to prevent unwanted access to the platform.
Wide Range of Assets Listed
Obviously the only way to be one of the best places to buy Bitcoin.. is to list Bitcoin as an asset for trading or sale. Some exchanges list hundreds of different cryptocurrencies to buy, sell and trade, while at the other end of the spectrum there are many Bitcoin brokerages that list it alone.
By providing users with a range of options, the best Bitcoin and cryptocurrency exchanges allow their traders to take advantage of opportunities both on that site and across multiple other sites.
Strategies such as cross-exchange arbitrage are effective only when there are enough trading pairs to present a range of deviations from one site to another. By providing a wide range of different crypto-assets, exchanges encourage users to trade not only mainstay assets such as Bitcoin and Ethereum, but also lesser-known, but highly profitable, altcoins also.
So, what is the Best Place to Buy Bitcoins nowadays?
The real questions that needs to be asked here is acually “what do you need them for?” and “how fast do you need them?”.
Purchasing Bitcoin in order to trade generally leads to cryptocurrency exchanges being the ideal place to begin. Once your account has been topped up with either fiat (USD/GBP etc) or other digital assets, it is easy to buy Bitcoin at the exchange and then to either store your coins in the provided exchange wallet, or to transfer them to another hardware or software wallet provider. This process is normally very fast and allows for easy future trading as well considering that your Bitcoin are already in an exchange, ready to sell.
If you plan to invest in Bitcoin instead of trading, and the overall goal is to buy and hold long-term, then Bitcoin brokerages may also suit your needs. Bitcoin can be easily and quickly purchased, normally using a bank transfer or credit card payment, and from there transferring your cryptocurrency to another wallet for long-term storage is easy also.
One thing that you can be sure of is that as time progresses and the cryptocurrency industry develops, that newer and improved methods for buying, storing and trading Bitcoin and other cryptocurrencies will become available in the market.