November 2nd, 2018
A cryptocurrency exchange refers to a digital marketplace that allows its users to trade fiat currency for non-fiat currency such as Bitcoin or Altcoin. It is essentially an online platform where sellers of various cryptocurrencies meet their buyers. They exchange digital tokens for money, other digital tokens or other allowed assets. Whether to exchange digital tokens for digital tokens or for traditional money varies with each exchange’s requirements.
Types of Bitcoin Exchanges
Exchanges are categorized into trading platforms, direct traders and broker exchanges. Trading platforms connect the seller to the buyer and take a small fee from the transaction. Brokers are synonymous to forex trade dealers whose sites offer fixed price cryptocurrencies bought from other sites. Direct traders on the other hand offer straight peer to peer exchanges where people across various locations can trade directly without any added charge or intermediary.
Crypto-exchanges run their services with minimal or no intermediaries as opposed to the traditional banking services. Some of the leading exchanges include; Gemini, Bitcoin of America, Coinbase and Kraken.
Own mode of Operation
Each exchange defines its modes of operation with traders looking for the one that best suits their needs. In deciding upon a choice of crypto-exchange, traders consider the following factors: Reputation, Fees, Payment methods accepted, Verification requirements, Geographical restrictions and Exchange rates. Given different market and consumer needs, each exchange has its own tailor-made system with all of them looking to woo in traders.
Choosing the best Bitcoin Exchanger
In choosing the right Bitcoin exchanger, reputation comes in handy. The higher an exchange’s rating, the better its chances of attracting traders. Good ratings increase consumer confidence as well as assure potential traders that their investments will be safe.
Fees and payment methods accepted will also be considered in choosing the best exchange. Facilitation fees should be on the minimal side and payment methods be more enabling rather than restrictive, meaning that they should be a variety to choose from.
For large transactions, some sites will require ID verification. However, for one-time low volume transactions, no verification is required across a vast majority of exchanges. Additionally, some exchanges have put in place geographical restrictions for some tools and functions on their exchanges. This is in order to curb economic crimes whereby proceeds of illegally obtained funds are laundered overseas.
The exchange rate offered by each exchanger varies. Traders will therefore gravitate towards the most favorable rates.
Luckily for traders, there exists a host of exchanges to choose from. The best-rated and the worst-rated depends on the mechanism put in place by each. The rankings are based upon user reviews considering the fees, user-friendliness, accessibility, ease of use and security among a host of other factors.
Why Bitcoin of America
Bitcoin of America ranks highly with the likes of Coinbase and Kraken. It has however set itself apart from its competitors in a number of ways.
To begin with, as opposed to Coinbase which takes a whopping 5-7 days to complete a transaction, Bitcoin of America completes a bitcoin transaction in minutes. It boasts of advanced blockchain technologies which ensure that each transaction is fast, safe and hassle free. It has also fully complied with anti-money laundering and Bank secrecy regulations as required by the state.
The site has eliminated intermediaries and invested in an anti-money laundering monitor system which earns it its top rating. It has raked in years of experience in bitcoin exchange and developed the best customer service in the business through that time. It has a 24/7 dedicated support for its clients’ technical as well as transactional queries and problems.