What are Bitcoin Exchanges?
With the increasing popularity of the cryptocurrency Bitcoin, more and more investors want to make a purchase and profit as values rise, using Bitcoin Exchanges. However, they don’t often know where to start when searching for places to buy the currency.
A simple and safe way to purchase Bitcoin is to head to a dedicated exchange platform online. As the name suggests, these are Bitcoin exchanges where the cryptocurrency can be traded and exchanged.
Individual providers differ when it comes to currencies and cryptocurrencies that can be exchanged for Bitcoin, and vice versa.
Development of Bitcoin Exchanges
Basically, most Bitcoin exchanges share a similar structure. In most instances, only a username and email address are required to start trading with cryptographic currency.
As a result, it is quick and easy to start trading with cryptocurrency at most Bitcoin exchanges. Frequently, no proof of identity is required as these exchanges remain largely unregulated.
In order to deposit cryptocurrencies on such exchanges, Bitcoins must be transferred to the exchanges’ private address. Upon completion of this, the value is credited to the user.
Bitcoin Exchanges Comparison
The Bitcoin Exchange Comparison lists a selection of Bitcoin exchanges that are currently enjoying great popularity with users.
These exchanges have drawn the attention of many due to high levels of security and good quality service. However, exchanges also carry a level of risk.
Probably one of the best-known providers in the Bitcoin exchanges comparison market is Bitfinex. Since its founding in 2014, the provider has grown to become the largest exchange of its kind and enjoys a 10% share of the entire Bitcoin market.
To trade in Bitfinex cryptocurrencies, users simply need to register with their email address and a username. The entire exchange of cryptocurrencies is unlocked at this point, although proof of identification is required to buy and sell cryptocurrencies in euros and US dollars.
The fees for trading on Bitfinex vary widely. In principle, however, it can be said that fees for both sellers and buyers decrease with larger turnovers. Fees are percentage-based. Deposits are only subject to a fee for small deposits of less than $1,000 in total. Payments are always charged at a flat rate.
Although Bitfinex is considered to be a secure choice of Bitcoin exchange, in the past, several attacks by hackers have resulted in Bitcoin currency being stolen from the exchange.
Bitcoin.de is the largest provider in the Bitcoin exchanges comparison for German-speaking countries. At the time of writing, it is also the largest provider active in Europe.
This exchange was founded in 2011, where only Bitcoins themselves can be exchanged for Euro, and vice versa. In contrast to some other Bitcoin exchanges, Bitcoin.de stores Bitcoins during the purchase process. Users can advertise Bitcoins and enter their bank details at the same time.
As soon as the buyer receives funds, Bitcoins are immediately transferred from Bitcoin.de to the buyer. In order to minimise the amount of time spent waiting for bank transfers, users can only view sellers who have an account with the same bank.
This ensures that most transfers are carried out promptly, if not instantaneously. Additionally, Bitcoin.de has entered into a partnership with Fidor Bank so that users with accounts from this banking provider can make purchases within their banking community in mere seconds.
There have currently been no major attacks by hackers reported or online intrusions in which Bitcoins have been stolen from this exchange provider. This is likely due to the fact that cryptocurrency never stays with the provider for very long.
Another major provider of a Bitcoin exchange platform is Coinbase. Founded in 2012, the service offers a Bitcoin exchange platform, in addition to the provision of a web wallet.
With this handy addition, Bitcoins and other cryptocurrencies like Ethereum and Litecoin can be received and shipped with the wallet itself. Bitcoins can also be purchased and sold with conventional currency.
You can register for a web wallet with Coinbase by supplying your name and email address, but you must also provide proof of identification in order to actively exchange cryptocurrencies, if you’re using conventional currency to do business, that is.
Purchases can then be paid for by bank transfer or credit card, while withdrawals are limited to bank transfer only.
Fees vary at Coinbase. A charge of 3.99% of the purchase value applies to credit card payments within Europe. With bank transfers, a charge of 1.49% applies. A flat fee of 15 euro cents also applies to all withdrawals.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.