By Wilson Mark
Bitcoin is not much different from computer programs or cellular applications that provide a personal wallet, allowing users to send and receive Bitcoin. Although there are many exchanges available for people who are looking for opportunities to trade or invest in BTC, knowledge of how system work is very important before starting. The money transfer process for exchanges can be a strict process. It is not easy to obtain, which explains why it is important to involve brokers or bitcoin exchanges. The process of finding brokers or exchanges is more than finding one with the most handsome website. The factors that need to be considered when choosing exchanges include:
Liquidity
It is traded on the market where traders and investors are looking for opportunities to sell or buy currencies. Therefore, it is recommended to consider exchange liquidity. Liquidity terms refer to the ability to sell assets without price significantly affected, in turn cause prices to fall. When there are more sellers and buyers, the more liquidity. Some of the biggest exchanges offer a high selling price, which in turn creates an effect that allows the system to produce to a large network where more people can join.
Proximity
Bitcoin remains relatively non-regulated money, although landscape is expected to change in the long run. There are more exposure to the financial industry and the media in this case. We will experience more governments who want to mobilize control of how monetary value is transmitted. This is associated with the government needs to examine and prevent instruments to be used for illegal activities, such as money laundering, illegal drug smuggling and terrorism. Because of the price difference, it is important to verify any exchange geographical location. Furthermore, the exchange of exchanges will dictate investors and legal traders what they have to follow.
Cost
Buying and selling does involve money. This money is ideally incentives for brokers or exchanges. However, it is not like buying bonds or shares, Bitcoin exchanges charge a percentage, while discount brokers used by most investors charge flat tariff fees. The percentage model, purchase and sales from time to time can be proven expensive. Some popular exchanges charge a higher percentage fee based on a sliding scale, based on volume. Therefore, they collect fewer percentages where more volume has been traded within thirty days.
