Things to Remember When Buying Bitcoin on an Exchange
Bitcoin and the other cryptocurrencies have been in news so much that every one of us wants to have our own share. There are many ways you can trade the Bitcoin, check this out. Buying Bitcoin needs some other fees apart from the price of the actual coins. The exchange usually adds a little bit extra amount to the Bitcoin price depending on various conditions, it can be flat that can be applied for every trade or can be percentage based on monthly trading volume. Here a few things you know before buying Bitcoin or other similar cryptocurrencies on any exchange.
1) Exchanges are unregulated: First and the most important thing about the cryptocurrency exchanges is that most of them, except for a few exceptions, are unregulated. Cryptocurrencies are the decentralized currencies that are not under the control of any the authorities or governments and so are the exchanges. So the way these exchanges work can differ completely from each other.
2) Fees differ per transaction: The exchanges want us to trade the cryptocurrencies frequently and for higher amounts. So the fees are designed to work in such a manner that the fees are less when there are frequent transactions of higher amounts. Sometimes if the amount is quite higher, the exchanges can waiver off the transaction fees completely.
3) Using cryptocurrencies instead of fiat currency: It is the best option to buy and sell the cryptocurrencies with other coins instead of using the fiat currencies. The fiat currency transaction usually has transaction fees that add up to the total transaction cost. Whereas the transaction is usually free when you use other coins. In this case, a small amount might be charged to set up the wallet required for storing the coins.
4) Coins on different exchanges: Not all the exchanges offer access to all the coins. Like many big exchanges do not offer access to the newest coins, but you do this by transferring coins from one wallet to other. There are many ways to exchange the coins within the wallets or you can also use your fiat currencies to achieve this.
There are many ways to trade your cryptocurrencies and so are the different charges for it. When doing the transaction understand all the terms and conditions of different exchanges related to various charges and fees. Compare different exchanges to see how they charge and what different options are they for payment.