what is bitcoin exchange? Bitcoin exchange is a business thats allows customers trade digital currencies for other assets such as conventional fiat money or other digital currencies. Different bitcoin exchanges around the world are what sets the price of bitcoin.
Types of Bitcoin Exchange
Since bitcoin and cryptocurrencies are all completely digital there are a number of different types of bitcoin exchanges and many different ways to buy and sell bitcoin. Some exchanges are for buying bitcoin with cash while others are for buying with an ACH transfer directly from your bank account and others are exclusively for trading digital currencies similar to a forex market.
If you want some bitcoin to experiment with or to save for years down the road, you are likely going to use a bitcoin exchange that sells bitcoins directly to end users. Here are the most popular exchanges for getting bitcoins both for personal use or for speculation purposes. Some of these are for buying directly, while others are trading platforms for day trading bitcoin against other cryptocurrencies.
1. COINBASE: Coinbase is the oldest and largest bitcoin exchange in the United States for business to consumer bitcoin sales. To purchase bitcoin from Coinbase, you will need to initiate an ACH transfer directly from your bank account. Coinbase charges a premium of 1% for both buy and sell orders.
2. SHAPESHIFT: Shapeshift is exclusively for trading bitcoin and other cryptocurrencies with other active users around the world. What I like (and probably most other users) the most about shapeshift is their focus on user privacy. No accounts or logins are required to trade on shapeshift. All you need is since these transactions are “on chain” you will need to pay a transaction fee for each transaction.In my personal opinion, ShapeShift is probably the best cryptocurrency exchange in the world.
3. BITCOIN “ATMs” or BTMs: Bitcoin ATMs or “Bitcoin Teller Machines” are one of the easiest and quickest ways to purchase bitcoin with cash. I think that most of these terminals are one way terminals for buying bitcoin only but some of them are two-way machines so you can both buy and sell bitcoin. Bitcoin ATMs are incredibly convenient because of their speed but they often charge high fees. Premiums of 10-20% over spot price are very common. If you would like to buy some bitcoin using a BTM, you can use coin ATM rader to locate the nearest bitcoin ATM.
4. LOCAL BITCOINS: LOCAL BITCOINS is one of the oldest and most trusted place to buy and sell bitcoins. LBTC is a peer-to-peer marketplace for exchanging bitcoins with other bitcoin users. Payment mechanisms range from bank wire transfers to face to face meetings with cash payments. When large trading platforms go down or are shut down by governments, users usually resort to trading here on local bitcoins. Be careful on here since there are lots of scams and fraud.
That pretty much sums up all of the different types of bitcoin exchanges around the world. With all of these different ways to buy and sell bitcoin, there is no shortage of ways to turn a profit in the bitcoins space or just to hond some of your own coins for years in the future. No matter what you plan on doing in the bitcoin space, there are a multitude of services there to help spread bitcoin across the globe.