Why buy bitcoin?
Ever since its launch in 2008, the value of bitcoin has had an upward trajectory, and now it’s at an all-time high. You may want to extend your investment portfolio to cover bitcoin as well. In order that you can buy or sell bitcoin, you’ll need an exchange company.
What’s an exchange company?
It’s an online marketplace where you can meet bitcoin traders from around the world. An exchange provides you a platform to buy or sell bitcoin from other traders.
But you don’t just sign up for an exchange company just because it advertises itself as such. You must ensure that the exchange provides security with at least two-factor authentications on wallets, and also that, it has a wide client base.
A large client base is a sign that hoards of people elsewhere trust the company, and also it promises that you’ll have a wider pool of potential traders to choose from.
So, I have put together a list of ten exchange companies that are worthy of your consideration when it comes to bitcoin trading.
Based in Switzerland, ShapeShift is an exchange company that caters to blockchain assets exclusively. This means that ShapeShift does not handle fiat money at all.
The company boasts of unique customer liberties, for instance, it doesn’t ask its customers for background information, and in that sense, customers are assured of discretion.
Customers send transaction fees to an address generated by the system.
This company was started by two peers: Nejc Kodvic and Damijan Merlak. The exchange wasn’t granted a business permit in the UK, under the clause that bitcoin isn’t a currency yet, and so, the company was moved to Luxembourg, where it’s headquartered.
Bitstamp allows peers to trade cryptocurrencies for fiat currency, and it boasts high transaction volumes, thanks to the companies diversified trade options.
The company also offers Application Program Interface (API) for integrating software into the system, making it possible to automate processes.
The safest way to buy or sell bitcoin is by meeting a customer offline rather than online. I suppose this is the idea that fueled Jeremias Kangas when he founded LocalBitcoins in 2012.
Headquartered in Helsinki, Finland, LocalBitcoins allows its global-based users to post ads on their platform, and then other users may reply to the adverts.
Buyers will see the sellers’ adverts, and sellers will see the buyers’ adverts too. They may contact each other and transact. LocalBitcoins has a rating system where users rate each other, and if you have a bad rating, after probably scamming people, obviously you won’t survive to scam more.
Another global digital exchange that facilitates the trade of not only bitcoin but also other class of cryptocurrencies as well. It was founded by Jesse Powell in 2011.
In Europe, Kraken has enjoyed the number one position for so long and has held the most market share. Although they don’t support the trade for all fiat currencies, the list of the allowed countries expands by the day.
Kraken is one of the few asset exchanges that haven’t encountered major hacker attacks. The senior management of Kraken was even tasked with supervising the Mt. Gox bitcoin heist.
An escrowed P2P online marketplace for bitcoin traders; Remitano was founded in 2014, and its growth has been steady all along, except now, as it’s shooting through the roof.
I expect that in 2017 Remitano will be every bit a giant in the vein of Coinbase and probably take the lead.
When it comes to choosing the perfect asset exchange, what really matters is customer comfort. In my experience, most of the large companies keep a condescending attitude toward their customers, whereas the up and coming exchanges are a bit more mindful, and you might want to support them, at least until they are big enough to be rude.