Trading cryptocurrencies are growing in popularity and there appears to be a growing number of traders and private investors who are keen to gain some financial exposure to this particular investment opportunity.
Whether you are seeking out bitcoin affiliate commissions by introducing others to the market or looking to place trades directly in order to try and generate a profit, what you want to do is find a place where your trades are as safe and secure as possible.
Here is a look at some of the top places where it should be possible to buy cryptocurrencies safely and securely.
Using an online exchange
It can usually be the case that bitcoin exchanges will offer you some of the best rates available to buy and sell the cryptocurrency.
The key aim when you are choosing your exchange is to carry out some research and checks to ensure that the site has a good reputation and the feedback from existing customers is positive.
Small and seemingly unimportant issues with the site such as some noticeable inconsistencies or bugs should not be overlooked as they could be a pointer that the site is not as robust or trustworthy as you would want.
Make sure that you always withdraw your cryptocurrency to your wallet as soon as you complete a transaction, regardless of how happy you are with the site.
Using a decentralized exchange
It is worth remembering that there are actually varying definitions of what constitutes a decentralized exchange.
It is best to clarify exactly what each one is offering and how they are set up before you commit to using them.
What you might be getting is a decentralized exchange that does not actually have its own bank account, instead, it runs and order book system.
What should be a common theme amongst the majority of decentralized exchanges is the provision of an escrow service that is used to hold the bitcoins.
This is an important feature as the escrow service will mean that your funds should be protected.
The following are suggested trading platforms that you might want to explore, although it should not be taking as a recommendation simply because they have been highlighted in this article.
An easy platform to sign up to
Switchain is quite a new site but the company who are backing the platform do have a track record.
The fact that you don’t have to provide any personal information or deposits to get yourself set up on the platform is a plus point and the site does claim that it aims to allow you to exchange cryptocurrencies at the best rates around.
It does allow you to test that theory by letting you get a simple quote for comparison before proceeding.
A site aimed at professionals
Bitfinex is a platform that has managed to develop a strong reputation and that is why it has positioned itself as a professional trading site rather than aiming for less experienced investors.
Feedback would suggest that currency values might be lower than you could find elsewhere but if you are a serious trader who is looking to commit in excess of $10,000 as a starting point, this is the site you might target as your trading platform.
There from the start
Next up is the exchange platform known as Coinbase.
It is fair to say that Coinbase has been providing an exchange platform almost right from the introduction of cryptocurrencies such as bitcoin and that means they have plenty of experience on their side.
You probably won’t find the lowest transaction fees here but they do provide access to wire and credit exchanges which is a positive convenience factor.
One of the largest
Kraken bills itself as one of the largest and oldest Bitcoin exchanges around and it is a name that appears consistently in reviews and searches when you are looking for a way to buy and sell crypto online.
It aims to set rigorous security standards and because it has been integral to the development of blockchain technology for about 8 years it does have the sort of experience that could provide you with a degree of comfort that you are trading in a secure environment.
Some of these sites are custodial exchanges and a popular alternative is to use a non-custodial exchange. With a non-custodial exchange, you are not required to deposit your funds and, instead, you keep your coins in a wallet until to decide to make make a transaction on the chosen exchange platform.
A mobile cryptocurrency wallet
Another service to consider is a site called Evercoin, who is the creator of the non-custodial cryptocurrency exchange known as NEX.
How it works is users get to keep their own keys using a multi-coin wallet that has a built-in exchange, which gives you a greater degree of control because all of your private keys are encrypted and stored in your mobile device.
A new player
Although it is a relatively new site in comparison to some of the others mentioned, it might be worth taking a look at Terrexa.
This site is aimed at trying to offer a quick and simple way for traders to access cryptocurrencies and the site has been developed by people who have years of experience in the Forex industry.
Instant Bitcoin and altcoin conversion
Shapeshift is a platform that allows you to swap between assets in a quick and easy way, whilst doing so in a safe and secure environment.
All you have to do is choose which assets you want to trade and these assets are then defined as the digital currency you are choosing to exchange between.
Finally, a decentralized exchange that might be on your radar is one called Etherdelta.
What this and other sites like it provide is a sort of introduction service that could be classed as peer-to-peer transactions.
The trades take place via the Ethereum network, which is the most high-profile of those that support decentralized exchange and you do need to trust the integrity of the smart contract when using this platform.
There is a world of choice out there and it is growing, but the underlying factor that you always need to consider is that you want to be happy that your chosen platform is safe and secure before you start to trade.