Best Bitcoin Exchanges
For many newcomers, Bitcoin is the go-to cryptocurrency for those who want to get involved in this new and exciting industry. Starting your journey can be a bit overwhelming at first, especially if you don’t know where to make your first purchase. Luckily, there are various ways you can go about purchasing Bitcoin in 2022, and today we’ll be going over some of the best platforms out there.
Top Bitcoin Exchanges in 2022
When it comes to buying Bitcoin from exchanges, you need to look at the exchange rates, the fees involved, and the payment methods that are accepted. Have a look below to see a hand-picked list of our recommended providers.
What Is a Bitcoin Exchange?
A Bitcoin exchange is a marketplace where you can buy or sell digital assets such as Bitcoin (BTC) and Ethereum (ETH). Exchanges tend to offer different fiat currency pairings that can be used to make the purchase, including USD, EUR, GBP, and AUD. Notably, you can also use one digital asset to trade into another. For example, you can exchange Ethereum for Bitcoin and vice versa.
How Do Bitcoin Exchanges Work?
When it comes to using cryptocurrency exchanges, there are two main ways through which you can trade. The first method is known as a market order where you can buy or sell Bitcoin at the price it is trading at in that exact time. Alternatively, you can use limit orders where a purchase is only made if the price reaches a specified limit set by the user. For example, if Bitcoin is trading at $50,500, you can set a buy order at $50,000 and your bid will only be filled if the price goes to that level. Indeed, you could also set a sell order to sell at a certain price as well.
How Do I Use a Bitcoin Exchange?
If you want to use a Bitcoin exchange and purchase a variety of different cryptocurrencies alongside Bitcoin, here is what you need to do.
Step 1: Register and open an account
Step 2: Secure your account
Step 3: Purchase Bitcoin
What Should I Look for in a Bitcoin Exchange?
You need to consider a few things when picking which exchanges to use to trade or buy Bitcoin from.
Payment Methods Which Are Accepted:
Ensure that you find a cryptocurrency exchange that accepts the forms of payments you are comfortable using such as PayPal.
This is one of the most important factors, especially if you want to become an advanced trader down the line. Finding the best rates can help you get more Bitcoin for your money.
Some exchanges may not operate in your geographic location so you will have to do some research to find the ones that do.
The fees will vary from one cryptocurrency exchange to another and will be dependent on your payment method. It is worth researching the different platforms out there to see which one offers the best rates for you.
Design and Ease of Use:
Another important aspect that needs consideration when choosing a cryptocurrency exchange is how well designed it is. You essentially want to be able to focus on buying the coins, not figuring out how the website works, so a simplistic user interface plays an important role here.
Do I Have to Verify My Account on an Exchange?
On many cryptocurrency exchanges, you will need to verify your identity when you sign up. Bitcoin exchanges in the US are required by law to know who is using their platform and so you will be asked to provide multiple forms of identification when you sign up. Generally speaking, you may be asked to upload a scan of your ID alongside a selfie of you holding said documents.
Are Bitcoin Exchanges Secure?
Bitcoin exchanges are typically well equipped when it comes to the security features they implement. At the same time, they are a big target for online attackers so it’s generally a good rule to not keep a significant amount of money in your exchange wallet. Perhaps it’s worth withdrawing your funds into a private wallet to which only you have access.
How Fast Are Bitcoin Transactions on Exchanges?
Bitcoin exchange transactions are near-instant, or in other words, as soon as you make a payment to the exchange platform in question, the Bitcoins will be added to your account immediately. However, keep in mind that this is not the case when you are transferring between exchanges, which will take slightly longer as it needs to be verified by the blockchain.
What Payment Methods Can I Use to Buy Bitcoin on Exchanges?
This is a question that is highly dependent on the US cryptocurrency exchange in question.
Most of the time, debit cards and credit cards, alongside bank transfers, are the most commonly used payment methods. Some exchanges will accept credit cards or PayPal as well. However, this is a lot rarer to find.
Do Exchanges Charge Fees for Buying and Selling Bitcoin?
Generally, exchanges charge fees whenever you buy or sell Bitcoin and the fee amount varies by platform.
Do Exchanges Charge Fees for Transferring in and Out of My Account?
When you as a user end up transferring coins to another wallet or exchange, you will be charged the transaction fee associated with the blockchain. These are referred to as the miner fees and can vary depending on the number of transactions that are occurring at any given time. Indeed, when the blockchain is less congested, the fees will generally be lower as well.
Do I Need a Wallet to Use a Bitcoin Exchange?
Most of the time, cryptocurrency exchanges will provide you with an on-exchange wallet that will enable you to hold the cryptocurrency tokens you buy from the exchange. That being said, it is recommended that you transfer your coins from your exchange's wallet to a private wallet if you are going to hold onto them for a prolonged period of time due to the security benefits you get this way.
What Are the Other Platforms That I Can Use to Buy and Sell Bitcoin?
Apart from cryptocurrency exchanges, you can also use cryptocurrency brokerages or CFD trading platforms. Brokerages manage the buying and selling process for you, while CFD platforms have their attention primarily on making quick trades to take advantage of the market fluctuations that occur.
Should I Use a Bitcoin Exchange?
This is ultimately your choice due to the fact that exchanges are the most common and easiest way to buy Bitcoin; they are recommended for beginner traders.