Bitcoin has become quite famous in recent months, with the cryptocurrency increasing in value and attracting a lot of new investors. It is also one of the most volatile of all Cryptocurrencies, with the value of one Bitcoin going up or down by a factor of 10 in a single day.
To avoid the volatility of Bitcoin, some people have begun trading it on platforms that are regulated and supervised by third parties such as the Financial Conduct Authority in the UK or the Financial Industry Regulatory Authority in the United States. These are known as trusted exchanges, and they offer several advantages over untraded digital currencies.
Here are 5 reasons why you should consider trading Bitcoin on a trusted exchange like Bitcoin Up:
- Low Commissions.
Trading Bitcoin on a regulated exchange avoids high commissions, which can be a major deterrent to investment. These commissions can often amount to 20 or more percent of the purchase price of Bitcoin.
The exchanges also offer marketplaces that allow you to buy and sell Bitcoin, as well as hold it for a set period. This allows you to take advantage of price swings and make some profits while taking less risk than if you bought Bitcoin directly from the exchanges.
- Track Record of Successful Exchanges.
A trustless exchange has a history of being successful in the Bitcoin market. This is because they are regulated and have a good track record of policing the market. In addition, they take measures to ensure that their customers are safe and that their transactions are secure.
This makes trading Bitcoin on a trusted exchange much more reliable than trading on an untraded digital currency.
- Knowable Exchange Rate.
One of the most important benefits of a trustworthy exchange is the known exchange rate. This means that you can be sure that your money will be safe and sound. With an untested exchange, there could be any number of potential problems that could occur. For example, if you lose your money in an auction or if your account is hacked.
Trustworthy exchanges have a history of ensuring that their customers’ money is always safe. In addition, they usually have a team of experts who are available to support customers during their transactions.
- Easy to Use Interface.
The interface of a trust-based exchange is usually very user-friendly. This means that you can start trading immediately and get a good understanding of how the exchange works. You’ll also be able to use the exchange to buy and sell Bitcoin, as well as store your Bitcoin in a safe place.
In addition, the exchange will provide you with a withdrawal process should you decide to sell your Bitcoin. You won’t have to worry about any cyber threats that could affect your online security.
- Bigger Financial Capability.
The biggest advantage of trading Bitcoin on a trusted exchange is that the financial capabilities of the exchange are much larger than those of Untraded Digital Currencies (UDCs) such as Bitcoin. A trust-based exchange can hold more capital, which can be invested in other assets, such as stocks or bonds. This will allow the exchange to offer more complex and diverse trading products, and it will also provide greater security for investors.
In addition, a trust-based exchange will have developed regulations in place governing its operations, which makes it easier to comply with financial regulations. For example, the Financial Conduct Authority (FCA) in the UK has created a code of practice regulating exchanges. The FCA has also issued guidance on how to deal with complaints about digital currencies.
In America, the SEC has also been working on developing rules related to digital currencies. This is in anticipation of new regulations that may come from Congress or the president himself.
Bitcoin trading is an excellent way to invest in digital assets, as it offers low commissions, a track record of success, and a wider financial capability than other markets. Additionally, trading bitcoins on trustworthy exchanges offer the added benefits of being able to track the exchange rate, knowing the trustworthiness of the exchange, and being able to easily use the interface.