Five ways to buy and sell Bitcoin in different use cases
Millions of people buy and sell Bitcoin in the belief that cryptocurrency in general is the future of money. Bitcoin as the first cryptocurrency created the idea that digital currencies could be a faster and cheaper means of exchange than traditional fiat currencies. The fact that the price of Bitcoin has increased by around 115% this year alone makes it an attractive investment. Many Bitcoin evangelists have predicted that the price of Bitcoin could rise to $10,000, $100,000 and possibly a million dollars in the future. If you are interested in joining the crypto movement, this piece provides a comprehensive guide on five different ways through which you can buy and sell Bitcoin.
The easiest place to buy and sell Bitcoin: Skrill
Skrill offers users the easiest solution to buy and sell Bitcoin globally. Founded in 2001 as part of PaySafe Holdings UK Limited, Skrill has established itself as one of the largest players in the digital payments industry. In 2018, Skrill started to repurpose its experience, expertise, business process and existing rails to offer users an easier entry into the crypto market. One of the reasons Skrill offers the easiest platform to buy and sell Bitcoin is its seamless account opening process. You can open a free account, deposit funds, and start buying Bitcoin or any other crypto that interests you within minutes. Skrill then allows you to buy Bitcoin using more than 40 traditional payment methods and 100 alternative payment methods. Skrill also provides users with automated trades that help them take advantage of dips in the price of Bitcoin to buy at the bottom while selling their coins when the price of Bitcoin rises. The automated trades eliminate the need to check the price of Bitcoin every minute as you can set price triggers to buy and sell Bitcoin and trust Skrill to handle the trades without requiring any additional action on your part. The fact that Skrill is registered in the UK also provides a measure of confidence in its compliance with regulatory requirements. Skrill is authorized by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuance of electronic money and payment instruments.
Mainstream exchange for buying and selling Bitcoin: Coinbase
Founded in 2012, Coinbase is one of the oldest places to buy and sell Bitcoin and it is widely considered the most respected crypto platform because of its American roots. Coinbase provides its users with crypto wallets to store their coins and it also acts as an exchange for trading coins. Users can buy and sell Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Stellar and Ripple on Coinbase. One of the factors that make Coinbase a respected Bitcoin platform is that it has 98% of user funds offline to thwart hacks. In addition, user cash balances on Coinbase are insured up to $250,000 in the unlikely event that coins are stolen in a hack. Coinbase also fortifies its wallet with two-factor authentication and it keeps redundant paper and digital backups to make it easier to restore user accounts when needed. The big downside to Coinbase is that it seems to be built intentionally for US users; for example, it charges a variable transaction fee of 1% for transactions in the US and foreign transactions tend to attract higher fees. Coinbase also allows you to buy Bitcoin with credit cards for which it charges an additional 2.49% flat fee.
The cheapest place to buy and sell Bitcoin: Robinhood
If you are in the US, Robinhood crypto is probably the cheapest solution for buying and selling cryptocurrencies. Robinhood built its business around offering stock brokerage services to users at no cost. Robinhood has expanded its services beyond stock brokerage to providing a platform for trading cryptocurrencies. Robinhood Crypto allows you to buy and sell Bitcoin while backing about 16 other coins. It also allows its users to place market orders and limit orders. The trading app combines your stock and crypto accounts and it is available on the web, iOS, and Android. Robinhood is still the cheapest platform to buy and sell Bitcoin because it doesn’t charge any fees overtly or covertly. However, the downside is that Robinhood is only available in the US and only in about 16 states; therefore, many potential users are excluded.
Ideal place for professional traders to buy and sell Bitcoin: Binance
Instead of trading fiat currencies like USD, Euros and Pounds, you can buy Bitcoin with other cryptocurrencies and you can sell Bitcoin for other cryptocurrencies. Cryptocurrency exchanges typically act as platforms to trade one cryptocurrency for another. Binance seems to be the most ideal place to buy Bitcoin with other cryptocurrencies. Binance provides support for trading more than half of the coins, altcoins, and tokens in the crypto market. It also provides support for a long list of stablecoins. Professional traders will also be at home on Binance because of its advanced charting feature, margin options, crypto lending, and futures trading. If you want to become an active cryptocurrency daytrader, Binance is probably the place to be. The downside, however, is that Binance is not insured and although it boasts of excellent security, users may not have much breathing space if the money gets stolen. Earlier this year, Binance was hit by a hack in which more than $40 million worth of Bitcoin was stolen. Binance offered to cover the cost of the hack but the success of the hack raises questions about what will happen if hackers manage to steal larger amounts of coins.
Most preferred Peer-to-Peer platform buy and sell Bitcoin: LocalBitcoins
If you’d rather buy and sell Bitcoin directly from other people, you might want to consider peer-to-peer trading exchanges. LocalBitcoins allows you to get in touch with thousands of Bitcoin buyers and sellers worldwide, negotiate trading terms, agree on payment methods and trade the coins informally. Many people prefer to buy and sell Bitcoin on P2P platforms because of the relative anonymity such platforms offer. After negotiations, the seller will put the amount of Bitcoin to be sold in escrow, the buyer will make payment via the agreed payment methods, and the escrow service will release the coins to buyers once the seller confirms payment. People using LocalBitcoins often use a wide range of payment methods, including Moneygram, bank transfers, gift cards, and cash. LocalBitcoins also allows you to filter trades by amount, currency, location, and payment methods. However, LocalBitcoin charges a 1% fee on trades in addition to the transaction processing fees charged with whatever payment method you choose.
Conclusion
The value of Bitcoin has grown from barely USD 0.02 since its launch in 2009 to more than USD 19 000 in 2017, and now around USD 100 000. The potential value of Bitcoin depends on its widespread acceptance, integration into global financial services and investor faith during the inevitable bear cycles. Cryptocurrencies are an emerging asset class and Bitcoin is the yardstick to predict where the cryptocurrency industry is heading. However, Bitcoin is volatile due to its speculative nature; therefore, you should not put more money than you can potentially afford to lose into a Bitcoin trade.
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