With black market tactics and scammers at an all-time high, there are a variety of safe ways to find the best Bitcoin exchange rate. You just have to know where to look.
Let’s talk about the dos and donts of finding the best Bitcoin exchange rate!
Why Are Bitcoin Exchange Rates Different?
First off, before you can find the best Bitcoin exchange rate, it is important to understand why there is more than one rate available to you.
In a nutshell, Bitcoin exchange rates differ because they aren’t controlled by federal governments like a traditional currency. There is anonymity to the transactions, which also ties in an ethical perspective. With that being said, the price is in the hands of the holder– literally.
Typically, prices directly reflect how many other banks are being filtered through to make the funds available. Banks take a piece of the pie, at a different price, every step of the way. Add it all up, and you’ll have varying rates all over the place.
Massive gaps in rates exist pretty much all the time. If you start using Bitcoin regularly, this won’t be any surprise to you.
More and more Bitcoin exchange companies are popping up. This makes it increasingly more difficult to know who to trust, and who can give you the best Bitcoin exchange rate for your money.
So, the key is to know where to look.
How Can You Find the Best Bitcoin Exchange Rate?
Think about banking. We can all agree that the number one reason we choose a bank is due to credibility. Supreme peace of mind comes from the ability to have total confidence in a business that is ultimately in control of our livelihoods. Right?
Bitcoin exchanges are no different. After all, your hard earned dollars are at stake. You’re going to want to be able to have total confidence in whichever Bitcoin exchange company you deal with.
Fortunately, we’ve got the Internet. As hairy as the worldwide web can be at times, we can rely on fellow users and business people to steer us in the right direction.
Here are some of the top-rated companies with the best Bitcoin exchange rates:
For some people, bigger is better.
If that means you, Coinbase could be the answer. It is the most-funded Bitcoin exchange in the world. The Bitcoin giant supports 32 countries, has served more than 9 million customers and has exchanged more than 20 billion dollars digitally.
Coinbase was founded in 2012 and is headquartered in San Fransisco, California. The platform currently hosts about 7.4 million users.
As of 2016, Bitstamp is the second largest Bitcoin exchange (by volume) for USD. The go-to for European Bitcoin users, Bitstamp was founded to be a superior option to former-reigning Bitcoin giant Mt. Gox. Users have the unique ability to use software to manage their account.
Bitstamp was founded in 2011 and is based in Luxembourg.
Local Bitcoins can be best described as the classifieds of Bitcoin exchanges. Local users in more than 240 countries, including the United States, use the platform to post ads about exchange rates and payment options for either buying or selling Bitcoins.
Local Bitcoins was founded in 2012 and they call Finland home base. The company serves about 1.35 million users.
CEX.IO got their start in the Bitcoin world through offering cloud-mining. In 2014, CEX.IO’s Ghash.io accounted for more than 40 percent all Bitcoin mining. The company has since grown into a legitimate Bitcoin exchange, offering users the ability to trade fiat money (USD, EUR, GBP, RUB).
CEX.IO was founded in 2013 in London and is a privately held organization.
How Can You Stay Safe and Secure During Bitcoin Exchanges?
Part of finding the best Bitcoin exchange is being secure while you’re doing it. Here are some pro-tips when it comes to security:
- When using any Bitcoin exchange platform, you have the ability to back up your Bitcoin wallet. Do it as often as you remember to. Think of your Bitcoins like [extremely valuable] data. If you don’t back it up, you risk losing it altogether. To help remind you, set a daily calendar reminder or use the alarm on your smartphone.
- Update software when applicable. This will keep each company’s security measures up to date and ready to protect your coins.
- Use cold storage for your coins. Don’t leave them inside the platforms or your wallet.
- Like anything worth protecting on the Internet, use two-factor authentication. This adds a layer of security to your coins.
- Strong passwords are the only way you’ll be able to access your wallet and keep it safe. Find a good one, and use a password manager to keep it secure.
- Treat your stored coins like your will. Plan out what will happen to them if something were to happen to you.
Why Is It Important to Find the Best Bitcoin Exchange Rate?
The answer is simple: you deserve it.
If you’re progressive and intelligent enough to be using Bitcoin exchanges, then you absolutely deserve to find the best exchange rate!
More than that, the best rate most likely reflects the best platform. This isn’t always the case, but more often than not, the best [and most secure] companies will offer the best rates.
It is also important to remember that finding the best rate will save you money in the end. Your hard-earned dollars should be well spent. One way to ensure that is to stay hungry in the search for the best exchange rate!
At the end of the day, using Bitcoin can be easy, seamless, and less time consuming than traditional forms of currency exchange. Using the information in this article, you should be able to not only utilize Bitcoin properly but you should be able to do it at the best rate.