Since the inception of Bitcoin, its price has been extremely volatile because of its reaction to the crypto world’s occurrences. How then does comparing Bitcoin with different brokers save you money? It’s majorly because other cryptocurrency exchanges have different prices. For example, Bitcoin price might be $19,000 on Binance while it may be $19,500 on Coinbase. This now brings us to why so many investors today are fixed on only one exchange.
Unfortunately, a single BTC exchange or broker has been fixed by many Bitcoin investors. This is, in large part, fueled by the services they receive from their preferred trading platform. Crypto investors have also been prevented from comparing Bitcoin prices in their trading journey by the lack of time to browse through brokers and exchanges and the fast increase of scam exchanges.
Notwithstanding the obstacles, by being exposed to high BTC prices, investors end up with a negative return on investment (ROI). Some exchanges charge exorbitant fees, aside from the costs. Sometimes, there may be grey areas in the fee schedule, further putting the trader in the dark and risking their ROI.
Cryptocurrency exchanges and brokers use common methods to determine the price of a virtual currency, including:
- Costs of Service: Trading platforms for Bitcoin charge fees as high as five percent and as low as 0.25%. Mostly while market takers pay higher fees for removing liquidity from the platform, market makers pay less.
- How often the cost is being calculated.
- The Method of Payment: For paying using credit cards or bank transfers, some platforms charge extra.
Best Place to Buy and Sell Cryptocurrency That Save You Money
It can be daunting at first to invest in or trade in Bitcoin or other cryptocurrencies. News about fraud and people losing money is regularly the order of the day. Although this is real, and many scams have happened and continue to occur, investing in cryptocurrencies has never been easy. In the last few years, so much has advanced that crypto trading has been secure and simple.
While selling and buying Bitcoin or other cryptocurrencies, the primary concern is safety and protection. The following exchanges are the best for any use case you might have, whether you wish to buy and keep long term, want to trade regularly, are interested in anonymity or privacy, or simply want the ease of use. Here are the top three crypto exchanges platform:
Coinbase
Coinbase is the most commonly known and used cryptocurrency exchange in the United States. Coinbase was founded in 2012, not long after Bitcoin’s was published in 2009, and is a fully regulated and licensed exchange of cryptocurrencies. Coinbase currently has licenses in over 40 states and territories of the United States to operate.
Although fake coins and dubious exchanges have infected the crypto-currency industry, Coinbase has largely escaped any controversy. Coinbase provides an incredibly easy-to-use business, significantly reducing the entry barrier for investment in cryptocurrencies, usually seen as frustrating and convoluted.
Fee: Around 1.49% per transaction, depending on the purchase’s dollar value. An easy way to save on these fees is to use Coinbase Pro.
Binance:
The Binance exchange is an exchange with a strong emphasis on altcoin trading established in 2017. Binance provides almost 600 different trading pairs between different cryptocurrencies. Few fiat/crypto pairs are provided, but most of their pairs are between cryptocurrencies.
Fees: 0.1% on the part of the taker and 0.1% on the part of the manufacturer. On both sides of the exchange, this decreases the trade volume to 0.02 percent. Using the native cryptocurrency of Binance, BNB reduces fees by 25%. We also found promo codes to receive a lifetime 20% discount on all the Binance fees.
Cash App
Just like Venmo, the Cash App is a peer-to-peer money transfer system. This form of service enables users to split food, pay a roommate’s rent, or even shop at a store that supports the Cash App online. Essentially, the Cash App can function as a bank account, and users can have their debit cards from the Cash App. This service alone is convenient, but there are also more features in the Cash App. The only advantage of this platform is that it presently only accepts Bitcoin.
Fees: For each purchase, the Cash App charges a service fee. It also charges a fee calculated by fluctuations in price. Depending on the market’s operation, these fees change.
Conclusion
Buying Bitcoin is an investment, and no doubt you are investing for the profits. Therefore, the contrast between existing and upcoming exchanges or brokers of crypto prices increases the profit margin by allowing you to buy low and sell high. Don’t just look at the spot price; however, consider the trading costs and what the site charges depending on the payment process. Comparing crypto prices can easily save you money in the long run.