Bitcoin is one of the most popular cryptocurrencies on the market, with many people choosing to trade their fiat currency for them through exchanges. In this guide, we explain what trading on an exchange is and why it’s a good idea to get familiar with it.
Savings and investments are a sure shot at increasing your net wealth. It is no surprise that the average public is very interested in ensuring they have the best investment strategies. One such common investment strategy for the last decade has been cryptocurrencies. Moreover, amongst other cryptocurrencies, bitcoins have been the most popularly Tracking Bitcoin.
There are many reasons why bitcoins have gained this popularity. Being the first ever created cryptocurrency, no one is shocked to see the immense popularity they have over the public. In recent years we have seen how bitcoins have grown from being worth something over one USD to now tens of thousands of USD.
To make this growth many cryptocurrency exchange platforms have been set up. Similar to stock exchanges, cryptocurrency exchange platforms are responsible for bringing in more traders and investors to the crypto field. Not only that they also allow users to transact and invest in bitcoins as well as other altcoins.
Trading Bitcoins On A Crypto Exchange: The Ultimate Guide
The only way to make a profit is by buying low and selling high. Trading with the right strategies will help you make more money on the short term.
Here is a guide to help you register on a crypto exchange platform.
Step 1: log on to the platform –
this step is self-explanatory in the sense that you have chosen a platform and created a profile and logged in.
Step 2: Create a new profile–
Next, you need to create a profile for the completion of the rest of the process. However, when registering or creating a new profile for any crypto exchange platform you need to have certain documents on hand. You have to use your legal name, date of birth, address, verified phone number, and more.
In addition, you require to show proof of all the above. These can be done through some government documents such as your government identity card, social security number, or equivalent of it. Some exchange platforms also require you to verify with a selfie of you holding your legal details. This is to ensure no one is being scammed.
Step 3: Linkyour preferred bank account –
the next step in ensuring you can smoothly use the features of cryptocurrency exchange platforms. You link the bank details that allow you to use your fiat currency to buy and invest in different cryptocurrencies.
However, despite all these easy steps the most significant and daunting step can be choosing the perfect cryptocurrency. Here are some important points that you should consider when choosing a cryptocurrency exchange platform. Read on to know more in detail!
- Security
When planning to choose a cryptocurrency exchange platform, first and foremost you need to check how secure is your chosen platform. While hacking the blockchain is an impossible task the same cannot be said about crypto platforms.
Since they are based on the common algorithm on which most websites and apps are based, they are an easy target. However, if you wish to secure your investment you should make sure that you go through their security policies to ensure you have chosen the best one. BitIQ is one fine platform when it comes to dealing with Bitcoin transactions in the safest way.
- Liquidity
Another important point to consider when choosing a crypto exchange platform is to check the liquidity factor used by your chosen platform. This is one of the most common problems even the exchange platforms face. You have to make sure that you choose a platform that can offer you liquidity opportunities, meaning that when you want to withdraw your cash you should be able to do it or even bitcoins for transaction purposes. You should also be able to easily exchange your cash for bitcoins or vice versa.
- Fees
Next, you need to check if your cryptocurrency exchange platform charges you higher fees or is competitively lower than the others in the market. Many platforms have transaction fees to help make the trading and investing experiences better for you. It is important that you check the fee structure beforehand; otherwise, you may face problems afterward.
Conclusion
So, these were some important factors every financial investor needs to consider when choosing a cryptocurrency exchange platform. Some other important things would include looking at government regulations in your country and any other significant laws pertaining to cryptocurrency exchange platforms.
