A bitcoin exchange is an online marketplace where you can buy and sell bitcoins with a credit card or through bank transfer. If you’ve been meaning to buy bitcoins as part of your forex trading strategy, you can do so by signing up for an account with a bitcoin exchange broker. Most of these brokers handle the exchange of this crypto currency with many major currencies including the US dollar, the Euro, the British pounds, among others.
Most people who exchange bitcoin do so with the intent of profiting from the price difference at the time that they buy or sell them. It’s really a lot like regular forex trading, only that you might be restricted in doing, depending on the country you are in.
Over the past few years as Bitcoin gained in popularity, governments have been quick to regulate circulation of this currency in some way. Government-based pressure has escalated with the bankruptcy of one major Bitcoin exchange, the Mt. Gox.
All other exchanges have stopped accepting customers from certain countries like the United States (because of so-called regulatory pressure). Others have stopped trading bitcoins altogether and have ventured into exclusively trading fiat currency. Still, there are other that are still thriving.
If you want to know which bitcoin exchanges you can still do business with, you should search Google for these companies. Just like anything else, not all of them are created alike, and there are exchanges that are better than others in terms of integrity. You can instantly tell if a company has moral fiber by its reputation.
That said, before signing up with any exchange, make sure to research on a company. Specifically, find out what the experiences of other people have been.
One of the major concerns that people have about bitcoin exchanges is the withdrawal process. Most people are flat out afraid they might not be able to get back the money they deposited. But really, the typical bitcoin exchange makes it easy for its members to withdraw money – they don’t get any benefit from withholding your money.
Some bitcoin exchanges, however, do have a process of verification before they allow members to withdraw their money. This is especially true in the case of companies that offer other currency pairs, not just bitcoin and other fiat currencies (mainly because they are regulated by their base country).
If you think you can make money from buying and selling bitcoin, you should be prepared to shell out money because this currency trades at $250 for one bitcoin. If you think that’s a lot of money, it is. But this is actually a very low rate for bitcoin, which used to trade at $800 for one Bitcoin.
Anyway, part of your adventure as a would-be Bitcoin trader is researching on the prospects of Bitcoin. Is the price going to go up in the future, or are we seeing the start of the end of Bitcoin? That’s something you need to determine for