In addition to choosing your payment method, it is now time to decide where you can buy bitcoin and in which forms your bitcoin can trade, and who are the best bitcoin sellers.
There are several platforms where you can buy bitcoin, each with its own advantages and disadvantages. In this chapter, we discuss each platform, and their differences differ. We also immediately made a list of the most popular bitcoin vendors of each platform.
You can consider a broker as a “bitcoin store”, where you as a consumer can buy bitcoins at a certain fixed price. The price of your bitcoins, in this case, is based on the current price, but also an additional fee based on the supply and demand that they have.
The disadvantage of a broker is that they are often less advantageous if you really want to get bitcoins in bulk. In addition, it is the price that the broker counts as additional costs based on how much demand there is for Bitcoin at that moment. This amount may well add up and is therefore not always the most suitable for people who want to buy and sell bitcoins actively and daily.
Because Bitcoin brokers have their own stock/supply of Bitcoin. That also means that they could possibly run out of their supply. Below is a top 3 list of the most popular Brokers to buy bitcoins:
These websites are concerned with connecting buyers and sellers of bitcoins and other digital currencies. Unlike the brokers, these platforms do not have bitcoin stock themselves, but they do request transaction costs. The transaction costs for these platforms are much smaller and do not vary on supply and demand.
These trading platforms are where, for the most part, the price of bitcoin is determined, since you clearly see what people are willing to pay for a single currency. In addition, these platforms also have their own wallet where you can store your bitcoin ( although it is not recommended to leave your bitcoins in an online wallet for a long time ). This does mean that there are many more useful techniques available to optimize your profit with bitcoins.
You have the option to place an order to buy and sell bitcoins at a certain price. But can also place stop-loss limit etc. This makes a platform very suitable for people who have a larger investment in Bitcoin of 1000 USD or more.
The downside is that for people who have never acted this can be a bit overwhelming. In addition, most exchanges mainly work with credit cards or Paypal. Some do not even offer the option to buy bitcoins directly!
Yet an online trade is indispensable for people who really want to get the most out of their investment of bitcoin, and want to make maximum profit on their investment.
Below is a top 3 list of the most popular online trading platforms to buy or trade bitcoins:
Online CFD Trading Platform
It is no secret that most people are interested in bitcoin because they see a good investment opportunity. This is not surprising when you look at the growth that the value of bitcoin has made since 2015.
Another way to make a profit on bitcoin where you do not even have to buy bitcoins is a CFD trading platform. CFD stands for “contract for difference”, a contract between two parties. This brings many benefits! You do not have to worry about storage, wallets and all that hassle of your bitcoins, because you trade in the CFD of bitcoin and not bitcoins itself.
In addition, because of the concept of “leverage” or leverage within CFD, you can make much more profit with smaller amounts than you would with traditional trading platforms.
An investor has done research and speculates that Bitcoin will increase its value even further. He opens a CFD position (long) for 1 Bitcoin of which the value of 2000 euros per bitcoin at the time. Normally the investor has to pay 2000 euros for this but to open the CFD trade, the investor only needs a certain amount of margin on his account. If the margin is 10%, the investor must have only 2000 x 10% = 200 euros in margin on his account
It is also possible to take a short position on Bitcoin, which means that you can predict that the price will drop, which you can also benefit from.
Contrary to popular belief, a CFD platform is often much more friendly than a traditional platform. Not only because much more attention has been paid to the design and clarity of their site or application. But also because you often get a virtual amount that you can practice with. So you get 20,000 euros that you can play with, with real shares. Until you master it. This is of course incredibly useful if you just make the attempt for the first time!
Suppose the price of Bitcoin has increased in the meantime to 2200 euros since the investor made his investment. Then the investors have made his profit the starting price and the final price or, 2200-2000 = 200 euros profit. In other words, a profit of 100%
The disadvantage is that in CFD trading you have to keep your margins (a certain minimum amount of the total) if you want to stay in the trade. Which of course involves a risk!
A new phenomenon that is starting to come up more and more in recent years is copy trading. At its core, this form is virtually identical to buying bitcoin with CFD trading platforms. The only difference is the social part.
In short, copy trading is nothing other than that you, as an investor, copy what the best investors are doing at the moment. You can then see how much profit they have made with their investment in bitcoin or something similar and decide to make the exact same investments.
Copy trading platforms allow you to do this automatically, and this means that it is very suitable for users who are new to the trade world but want to enjoy bitcoin growth!
Below are the three most popular CFD platforms for Bitcoins and other cryptocurrencies:
Offline Trading Platform
Would you rather buy Bitcoins from another user? Would you like to pay anonymously, and therefore in cash? Then an offline platform like LocalBitcoins is your best option to get bitcoins. This platform is quite unique in its function, so there is currently only one that offers buying and selling Bitcoin on this form.
You can compare this method of purchasing Bitcoins with the use of the marketplace. Users place an advertisement that they want to buy or sell Bitcoins for a certain price. Just as with marketplace, it indicates how the user wants or can be paid. That also means cash.
You can also continue to inspect the extent to which the user is reliable because you can see the experience of other people through the site, and their feedback on the seller/buyer.
The downside is that the price can vary quite a bit because people themselves indicate what they want for their Bitcoins, that can be either higher or lower than brokers!
How do you rate a Bitcoin seller / trading platform
Check their reputation
One of the first things you have to do is, of course, see if it is a reliable trading platform. This can be done by:
- Google the name of the site + “review” and study the result.
- Read the “about us” page of the bitcoin seller / trader.
- Ask forums for the experiences of other users, a nice example is bitcointalk
Volume and Transaction Costs
A good sign of trust is a trade or broker that sells and buys a large volume of bitcoin. You can often see this on their website.
It is also wise to look at the transaction costs that the broker uses. Do not underestimate this point. That way you can get the most out of your investment! The few euros difference count quickly to a larger sum that you prefer to put in your own pocket.
Extensive Verification Process
Some platforms may use a certain form of identification of your requirements for you to use their service. This process can consist of a photo of your ID or passport or transferring an amount (usually 1 cent) to verify your bank account.
This process can sometimes take up to 2 days with some brokers and is something that still needs to be checked manually.
Frequently Asked Questions
If you have entered the correct bitcoin wallet address, you do not have to worry about anything else. Often this process takes just a bit longer than you would like, especially if you use a UK broker!
If you look internationally at options where you can purchase bitcoin, you will see that the most preferable payment method is often a credit card.
This payment method is also often available within many other brokers, but because it’s the most popular international payment method; you have many more optionns. This often has the advantage that you can look much more at the mutual prices of the various brokers and other trading platforms.
That does not mean that you have to buy bitcoins with unreliable platforms, just because they are just cheaper!
In addition, you also have extra security with the credit card, and it is often possible to get your money back if you do not get your bitcoins.
Paypal is known for its aversion with Bitcoin, so it’s quite difficult to purchase bitcoins with Paypal. There are certainly a number of ways to work around this, more often than not it’s more difficult and it takes more time than alternative payment methods.
A number of bitcoin brokers where you can pay with credit card we recommend are:
There are websites such as Local Bitcoins, where you can get in touch with Bitcoin sellers and buyers who are willing to make the transaction in person. This, of course, means that the transaction is done with cash. The advantage of this method is of course obvious, some people prefer to do the transaction physically.
In addition, it’s usually slightly cheaper than an online transaction, because no transaction costs are charged.
The disadvantage is of course that you have to go to the person in question and that you make travel costs. In addition, you never know who will face you. It is therefore wise that you take correct steps to protect yourself.