Most Secure Trustworthy Bitcoin/Cryptocurrency Exchange: Thinking about getting into the bitcoin/cryptocurrency game but confused by all the different exchanges. We’ll look at why there are so many exchanges and which is the best one for you. Unfortunately, there is a slight learning curve to cryptocurrency trading but once you’ve registered with an exchange and logged in, terms that you hear all over the internet will start to make sense. It’s really just a matter of being involved and seeing things with your own eyes, in order for them to make more sense.
Why Are There So Many Bitcoin/Cryptocurrency Exchanges?
Basically, you use these exchanges to trade cryptocurrency coins aka altcoins. This means that you buy or sell crypto to other people. They will be doing the same thing – buying one type of crypto and selling another. The thing is, not all exchanges have the same cryptos available. Bigger exchanges tend to have all the major cryptocurrency coins and some of the smaller ones. Smaller exchanges tend to only have lesser known and newer coins. This is because it costs a lot of money to get a coin listed on an exchange. You would also need to build a lot of interest around your coin first before you can get it listed on major exchanges. For this reason, many coins remain on smaller exchanges for months or even years.
I recommend joining up with one major and one minor exchange to get started. You may find a specific coin that’s very interesting to you, at some point down the line, that’s not on either of your exchanges. At this point you may end up joining with that exchange or simply be patient until it is added to at least your minor exchange.
The Problem with Smaller Exchanges
The reason that most people stick to major exchanges is a trust issue. Smaller exchanges simply don’t have the manpower, and sometimes technical know-how, to keep their exchange up and running 24/7. When the market is doing well, I’ve seen many exchanges crash with too many people online at the same time. This can cause you to lose money – when you’re not able to sell a coin off when it’s at its highest price. I’ve seen smaller exchanges go down for months without any news as to whether they would return or not. Luckily I had sold all my coins from this site a couple months prior.
Another problem with smaller exchanges is quality-control. It’s costs less to add coins to smaller exchanges and some of them don’t bother to look at if the coin is made by a legit team. Many smaller sites have scam coins listed that will never release a finished product and are just there to make money off the gullible. It’s for these reasons that many people prefer sticking to major exchanges.
The only problem with this is that when a smaller coin is accepted onto a major exchange, the price normally skyrockets. So instead of paying a $0.01 for a coin on a smaller exchange, you might need to pay much much more when you buy it on a larger exchange. For this reason, I recommend registering with one major and one minor exchange.
Most Secure Trustworthy Bitcoin/Cryptocurrency Exchange
When I started trading with bitcoin and cryptos, Poloniex was the biggest and most popular exchange. But due to a lot of problems on their site and with their customer service – they are no longer trusted by most traders. Bittrex is a great exchange. I’ve been with them for a year and have had no problems to speak of. Their fees were quite high and that was the only reason I transferred my crypto to another exchange. This led me to search for the most trustworthy bitcoin exchange I could find.
1. In my eyes, the most secure bitcoin exchange is easily Binance. Once you’ve registered here, you’ll be able to purchase Binance Coin (BNB) on the exchange which give you 50% off of all your trading fees. What this means is that if you were to buy/sell a cryptocurrency on Binance and the normal fee would be $1, you’ll now pay just $0.50. This option can be switched on in your settings. Trading fees and withdrawal fees all add up over time, especially when you’re day-trading and using Binance has saved me a fortune through this offer.
A word of warning, when the bull market starts (when Bitcoin price starts steadily increasing), the number of people registering shoots up dramatically. Without fail, Binance will close all registrations to avoid slowing down the exchange. If you plan on trading at any time in the future, you should create you account now while registration is still open. You can leave it inactive until you need it but at least you will have it when the time comes.
Binance has proven itself to only add respectable coins. It also has the best security of any exchange ever. Usually when an exchange gets hacked, it loses all respect from its users. When some hackers tried to steal coins off of Binance, their risk-management system kicked in and within 2 minutes the accounts in question were blocked. You can read more about this story here. In the end, Binance actually made money from the online wallets of the hackers – which they duly gave to charity. The hackers were only able to pull this off because some users logged into a fake Binance website with their login details. Always bookmark your exchanges website address and do not pull it up using Google, as you could end up on a very similar looking site made to steal your details.
2. Initially, I only planned to talk about Binance but I realize that everyone will use at a very minimum – two exchanges. You will find a coin that you like that’s not available on Binance and you’ll want to buy it before the price goes up. When it comes to smaller exchanges – the most trustworthy cryptocurrency exchange is easily Kucoin. Again, always bookmark the exchange website address and use that each time you go back to it. If you insist on using Google to find, ensure that its is a secure https site and that the name is identical. Often scammers use letters or numbers from foreign languages that look identical in out browsers but are completely different characters.
Kucoin has great security and excellent customer service. They have lots of major coins and many smaller ones as well. They have a very stringent process in place to allow only the best smaller coins onto their exchange. With Kucoin, you’ll be able to invest in smaller market cap coins before they hit Binance and still know that your coins are safe and secure.
How to Buy Bitcoin
Once you’re all setup on the exchanges, you’ll need Bitcoin in order to make trades. Think of it as how you would trade on the stock market between stocks and USD. On exchanges, you’ll be trading between coins and Bitcoin (BTC). You can sell your Bitcoin back into USD whenever you like, but all prices on exchanges are in BTC. Most people use Coinbase to buy Bitcoin but I’ve found that their fees are ridiculous and it can take them weeks to release your Bitcoin to you. This led me to write the article How to Buy Bitcoin Without Coinbase. By far, the best way to buy Bitcoin fast is to buy it directly from miners at LocalBitcoins.
Basically, LocalBitcoins is a service that lets you buy Bitcoin directly from miners with a payment method of your choice. When you start a trade with them, their Bitcoin are held in escrow by LocalBitcoins. Once they’ve received your payment – they release the coins to you. Each seller has a rating out of 100 and they have to remain honest to keep their reputation score up. I’ve been buying from these sellers and selling Bitcoin back to them for a year now and have never had a problem. Depending on the miner, you can pay with Paypal, Alipay, Western Union, bank transfer, cash, etc. This makes it quick and simple to purchase your bitcoin and getting trading immediately.