Due to the growing popularity of cryptocurrencies, many people are eager to learn about where they can buy and sell Bitcoin online. Bitcoin happens to be the first cryptocurrency invented and possibly the most well-known around the globe.
The good news is that it is possible to buy and sell this cryptocurrency anywhere that Internet access is stable and available. You just need a good grasp of what cryptocurrency is and how the underlying technology works to start out.
Things To Know When Buying And Selling Bitcoin
People want to buy and sell Bitcoin for profit. But not all Bitcoin exchanges are credible. A good example of this is the failed FTX crypto exchange which has figured in the headlines of broadsheets lately due to legal troubles. There are also reportedly some fake crypto exchanges flourishing online.
Some scammers have even created fake crypto wallet apps as well. So your first concern should always be safety. The last thing you want is to get into a Bitcoin trading platform that is shady because you might lose your crypto stash that way.
Second, you will want to trade Bitcoin on a platform that will accept fiat currencies as payment for the fees. You can also use your current stash of Bitcoins to pay for new Bitcoins. To pay for your crypto purchase, some exchanges allow you to use PayPal, Skrill, VISA, Mastercard, Apple Pay, and Google Pay.
Third, you don’t have to buy an entire Bitcoin. You can purchase only a fraction of a Bitcoin per transaction and it would still be legitimate.
Fourth, governments of any country do not regulate Bitcoin transactions at all. This is because there are no dominant entities that control cryptocurrencies anywhere on the planet. So you can expect less impact on your cryptocurrencies when traditional financial transactions around the world are in flux. However, there are some payment channels such as PayPal that may deduct taxes if you use them to make your trade.
Bear in mind that the Bitcoin inventory of the world is finite. That means no one will be creating brand new Bitcoins ever. So that creates more demand for the 21 million Bitcoins that have already been created and may affect the rise or fall of the market price.
Finding the Right Place to Buy and Sell Your Bitcoins
Going online, you will literally be flying blind when trying to find the right exchange to trade for cryptocurrency. That’s because there is no governmental or non-governmental entity that will dictate which cryptocurrency exchanges are the best or are legitimate.
You also have no insurance to protect you against financial loss if your trade goes sour or someone steals your cryptocurrency. So that makes it more adventurous meaning you should only trade with money you can afford to lose.
It literally can be considered like casino gambling – you have no idea whether you stand to lose or gain profits with a crypto bet except your intuition, experience, and previous performance of other traders.
However, there are some websites that offer reviews of trading platforms. Some crypto exchanges are more popular than others. If you trust reviews of these exchanges, that may help you start out in Bitcoin trading.
Here is a list of some of the more popular Bitcoin cryptocurrency trading exchanges out there:
- Coinmama – this crypto exchange claims to be used by over three million customers online meaning it is quite popular. Common sense dictates that if Coinmama is still around then it must be rendering honest service to the public. But if you’re in doubt, try surfing for reviews about Coinmama itself.
- eToro – the nice thing about this trading platform is that it allows you to get a $10 bonus should you purchase cryptocurrency amounting to $100. It has a bigger media presence than other crypto exchanges due to aggressive online advertising and hiring a popular showbiz celebrity to endorse it.
- Coinbase – this possibly has the sweetest dealmaker promo since it offers you free crypto worth $200 for free just by signing up for an account with them. They also don’t ask for any minimum initial deposit into the account for you to start trading with them.
Incidentally, there are some websites that are actually not solely cryptocurrency exchange platforms but also offer other financial services such as stock trading and forex trading. So you need to understand what they’re offering first so that you don’t get confused as to how to conduct crypto trades with them.
To pick a crypto trade exchange, you need to determine what their fees are for specific cryptocurrencies and whether you have to make a specific amount for initial deposit when you set up your account.
Some of these websites don’t necessarily ask you to pay a specific amount just to make an initial trade. But some may ask for both a specific deposit amount and a trading fee. You have to determine which ones are really worth it on your own.
Of course, it goes without saying that Bitcoin buy and sell transactions carry their own risk. For one thing, your Bitcoins won’t have any marks of ownership on them since it is a decentralized form of digital money. This makes it easy to acquire Bitcoins without realizing that it was stolen from somebody else. This is the biggest disadvantage of Bitcoin trading.
Another disadvantage of Bitcoin trades is that you literally cannot tell sometimes when you will be scammed online. One way you can be scammed is through phishing email attacks where cybercriminals will attempt to secure your password and other sensitive information. They will then use this data to clean out your account leaving you with zero funds afterwards.
However, if you are street smart enough, you may be able to regularly acquire more Bitcoins over time. Then you can monitor the value of the cryptocurrency online and see whether you can make a huge profit by finally selling your crypto stash to an eager online trader eventually.