You can easily buy digital assets from an online platform because there are ample numbers of platforms available where bitcoins are available. Even, people can use their PayPal account to buy bitcoin. You need to choose a trusted and reliable exchange where you can keep your tokens safe. You need to do your homework before you choose an exchange and you must check the following things while you consider a bitcoin exchange.
Overview of Bitcoin Exchange Platforms
Bitcoin exchanges are similar to stock exchanges, where you can trade bitcoin through your crypto according. You need to open a Demat account to trade stocks because you have to link your Demat account with a stock exchange to buy and sell your stocks.
When you plan to trade in Bitcoins, a crypto exchange platform is what you need access to. In this case, you do not need to visit their branches physically to open an account because bitcoin is a completely digital currency that does not have any physical presence. So, you can submit your KYC digitally to verify your identity and you can activate your account to buy or sell such digital coins.
Steps To Follow When Choosing A Bitcoin Exchange Platform
You need to check the location of such exchanges before you choose because most of these exchanges are governed by their local laws and authority, and you cannot buy or sell such coins from an exchange that is banned in your state. For example, there are some exchanges available that support certain currencies and you cannot buy bitcoin from an exchange that does not support your fiat currency.
- Creating an account on the crypto exchange platform requires you to undergo the process of verifying your KYC. Apart from that, exchanges have some liquidation limits and you cannot deposit or withdraw cash beyond their limit. You can increase this limit by verifying your KYC. In this case, you can submit your documents issued by the government to verify your identity and it will take some time to get your account activated.
- You need to buy such coins with fiat currency and you have to transfer funds from your bank account to your wallet. In this case, you can use your debit card, credit card, or digital wallet to transfer your funds. Else, you can link your bank account with an exchange to trade such digital coins. You cannot buy bitcoin with cash because there is no counter available where bitcoin is available. But, you can use BTM or bitcoin ATM to withdraw your cash and you can also buy bitcoin through these ATMs.
- There is no exchange available that can provide bitcoin transactions free of cost and you need to pay a certain transaction fee for every transaction. But some exchanges can offer you to buy such coins without any transaction fee. You can check such transaction fees of different exchanges to choose an affordable one. Make sure your chosen crypto exchange platform does not have any hidden fees.
- There are some bitcoin exchanges available that are releasing their order book every month and it is a healthy practice that can ensure you to trust such exchanges. Order books of such exchanges contain the buying and selling orders of bitcoin of their previous days and you can check the liquidity rate of such exchanges through their order books. It does not mean that exchange not releasing their order book is an illegal exchange, but you must choose a reliable platform that has this facility.
- There are limited numbers of bitcoin available in the market and some exchanges do not update their database on a regular basis. They can show a small number of coins available on their platforms and they will increase the price of such coins by showing such false data. So, you can crosscheck the available tokens from another exchange to verify such data.
On an important note, it is to be noted that you cannot buy bitcoin with an anonymous identity because you have already verified your crypto account with your KYC and people can easily trace your identity if you involve in any illegal money laundering activity.