TheBitcoinExchange.Net

TheBitcoinExchange.Net


What is Bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto.

Transactions are made with no middlemen – meaning, no banks!

Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it.

The price of bitcoin skyrocketed into the thousands in 2017.

Why Bitcoins?

Bitcoins can be used to buy merchandise anonymously.

In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation.

Small businesses may like them because there are no credit card fees.

Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

Acquiring Bitcoins is easy, you can Buy on an Exchange at https://bitcoinprod.wpengine.com.

These “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies.

Coinbase is a leading exchange, along with Bitstamp and Bitfinex.

Security can be a concern: bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in 2016.

Transfers:- People can send bitcoins to each other using mobile apps or their computers.

It’s similar to sending cash digitally.

Mining:- People compete to “mine” bitcoins using computers to solve complex math problems. This is how bitcoins are created.

The winner is rewarded with 12.5 bitcoins roughly every 10 minutes.

Owning Bitcoins Bitcoins are stored in a “digital wallet” which exists either in the cloud or on a user’s computer.

The wallet is a kind of virtual bank account that allows users to send or receive bitcoins to pay for goods or save their money.

Unlike bank accounts, bitcoin wallets are not insured by the FDIC. The wallet in the cloud.

Servers have been hacked. Companies have fled with clients’ Bitcoins.

Wallet on a computer: You can accidentally delete them.

Viruses could destroy them.

Anonymity:- Though each bitcoin transaction is recorded in a public log, the names of buyers and sellers are never revealed – only their wallet IDs.

While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them.

That’s why it has become the currency of choice for people online buying drugs or other illicit activities.

Future:- No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the currency.

BEST BITCOIN EXCHANGES

A List of The Best Bitcoin Exchanges

 THESE ARE THE BEST BITCOIN EXCHANGES:

BlockTrades.Org – REVIEW

  • High Liquidity
  • Instant Exchange
  • Newbie Friendly
  • Always Puts Customers First
  • No Account Needed
  • Anonymous
  • We Buy Bitcoins

No Deposit Fees:
No Withdrawal Fees:
No Trading Fees:
No Commissions:

No Brokerage Fees:

No Exchange Fees:

Ratings: Excellent

Futures Trading?No  Derivatives?No

Margin Trading? YES

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Coinbase.com Review    

  • Professionally made website
  • Educational Materials (videos)
  • Easy verification process
  • Copy trading
  • Does not accept Bitcoin deposits/withdrawals
  • Limited cryptocurrency listings
  • No live chat

No

Deposit Fees:
NoneWithdrawal Fees:
YesTrading Fees:

Good

Futures?Yes Derivatives?No Margin Trading?Yes

Visit Website

Etoro.com Review  

  • Easy account creation
  • No minimum deposit
  • Awesome interactive website
  • Unregulated
  • Some negative reviews

No

Deposit Fees:
NoneWithdrawal Fees:
NoTrading Fees:
None

Excellent

Futures?No Derivatives?No Margin Trading?Yes

Visit Website

Simplefx.com Review    

  • Demo Mode
  • High trading volume
  • Hard Verification
  • Many user complaints
  • Fees are high

No

Deposit Fees:
YesWithdrawal Fees:Trading Fees:
0.1%

Excellent

Futures?No Derivatives?No Margin Trading?Yes

Visit Website

Hitbtc.com Review    

  • Support for numerous altcoins
  • Fast deposits and withdrawals
  • Competitive fees
  • Weak liquidity for some of the coins
  • No mobile apps

No

Deposit Fees:
YesWithdrawal Fees:
YesTrading Fees:
No

Good

Futures?No Derivatives?No Margin Trading?No

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Livecoin.net Review   

  • Wide range of exchange options
  • Accepts Credit Cards
  • 2FA Security
  • High transaction fee of 0.5%
  • Negative comments from the community
  • Still a lot to prove (a fairly new company)

No

Deposit Fees:
NoneWithdrawal Fees:
NoneTrading Fees:
0.5%

Good

Futures?No Derivatives?No Margin Trading?No

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Changelly.com Review  

  • Easy to get verified ( 2 factor authentication)
  • Accepts Credit Card and PayPal
  • 24 hr expected resolution through their help-desk
  • Referral program
  • Website is too plain (there are no charts and no transparency)
  • A good number of negative reviews about how they operate
  • Was hacked

Yes, around January 2017

Deposit Fees:
NoWithdrawal Fees:
YesTrading Fees:
PayPal processing fee of 2.9% + $0.30 on top of the loan amount and interest.

Good

Futures?No Derivatives?No Margin Trading?No

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Xcoins.io Review  

  • Accepts US residents
  • Anonymous
  • Easy account creation
  • New to the market
  • Does not accept Fiat deposits
  • Could use more customer service channels

No

Deposit Fees:
NoWithdrawal Fees:
0.00001689 BTCTrading Fees:
Yes

Excellent

Futures?YesDerivatives?N/AMargin Trading?Yes

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1fox.com Review   

  • Probably the fastest way to buy and sell BTC
  • Trading with cash
  • Higher fees
  • Need to go to the bank to make it happen
  • Site was offline for a month after an attack

Yes

Deposit Fees:
NoWithdrawal Fees:
NoTrading Fees:
0-2%

Good

Futures?NoDerivatives?NoMargin Trading?No

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BitQuick.co Review    LOTS OF ALTCOINS  

  • User-friendly Interface
  • Security -Yobi codes (deposit codes)
  • Free Coins
  • Negative reviews

No

Deposit Fees:
YesWithdrawal Fees:
YesTrading Fees:
0.2%

Excellent

Futures?Derivatives?NoMargin Trading?No

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Yobit.net Review   

  • Accepts Fiat Currency Deposits
  • Physical Card
  • A lot of deposit options
  • Unregulated
  • Limited number of coins

No

Deposit Fees:
2%Withdrawal Fees:
2%Trading Fees:
0.43%

Excellent

Futures?Derivatives?YesMargin Trading?Yes

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Bitbay.net Review  

  • Safe and decentralized trading
  • Arbitrators
  • 2-out-of-3 multisig security in trades
  • Wide selection of FIAT and Crypto Currencies
  • They need more aggressive advertising
  • More active development
  • They need to team up with other companies
  • High fees

No

Deposit Fees:
NoWithdrawal Fees:
YesTrading Fees:
0.001% – 0.009%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Bitsquare.io Review   8080

  • Easy to use website
  • Great features
  • Verification process is long
  • Focused on Argentinean market

No

Deposit Fees:
YesWithdrawal Fees:
$20Trading Fees:
2%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

Visit Website

Satoshitango.com Review    HIGH VOLUME  

  • High USD liquidity
  • Low fees
  • Full package of order types, margin trading and lending market
  • Hack has been solved professionally and innovative
  • Not a transparent company
  • Reputation loss due to hack

Yes

Deposit Fees:
NoWithdrawal Fees:
No, except wire transfersTrading Fees:
0-0.2%

Good

Futures?NoDerivatives?NoMargin Trading?Yes

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Bitfinex.com Review    

  • Competitive fees
  • Good security
  • Accepts many different FIAT currencies
  • Website could use some improvements
  • Doesn’t keep the pace with competition

No

Deposit Fees:
NoWithdrawal Fees:
Yes, 1% + 5 USDTrading Fees:
0.0 – 0.15%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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LakeBTC.com Review    

  • High trading volume
  • Horrible Support
  • Inflated Prices (up to 10% above the real price)
  • Verification process is demanding a lot
  • Lots of bad reviews

Yes, hacked in 2013

Deposit Fees:
YesWithdrawal Fees:
YesTrading Fees:
0.1-7%

Good

Futures?NoDerivatives?NoMargin Trading?Yes

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Cex.io Review    

  • Private and fast
  • Easy to Use
  • Need to keep an eye for scams
  • Not suitable for large buyers
  • Now ID verification is required

No

Deposit Fees:
NoWithdrawal Fees:
NoTrading Fees:
1%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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LocalBitcoins.com Review  

  • Fast exchange
  • Two-factor authentication
  • Discounts for verified credit cards
  • High Bitcoin Premium

No

Deposit Fees:
NoWithdrawal Fees:
NoTrading Fees:
None

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Buysomebitcoins.com Review   

  • Good liquidity
  • Competitive fees
  • International market
  • Owned by Coinbase which is known for lack of privacy
  • Support could be way better

No

Deposit Fees:
NoWithdrawal Fees:
YesTrading Fees:
0.1 – 0.25%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Gdax.com Review   

  • Good reputation
  • High volume and liquidity
  • Connections in the industry grant it additional legitimacy
  • Easy to use and quick
  • Supports only BTC/FIAT trades
  • More negative comments in the recent past
  • Slightly higher fees if you are trading lower volumes

Yes, in January 2015

Deposit Fees:
NoWithdrawal Fees:
NoTrading Fees:
0,25% – 0,1%

Very Good

Futures?NoDerivatives?NoMargin Trading?No

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Bitstamp.com Review   

  • Numerous deposit options, including PayPal
  • Multiple cryptocurrencies
  • Trustworthy and reliable
  • Low liquidity
  • No live chat support

No

Deposit Fees:
YesWithdrawal Fees:
YesTrading Fees:
0.45%

Good

Futures?NoDerivatives?NoMargin Trading?No

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Cryptonit.net Review   

  • Fast transaction 
  • Community Involvement 
  • Website is straightforward 
  • Only Paypal
  • Very basic site

Deposit Fees:
NoWithdrawal Fees:
None, you pay their crypto price and that’s it, aside from PayPal charge.Trading Fees:
None, they sell high.

Good

Futures?NoDerivatives?NoMargin Trading?No

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Wesellcrypto.com Review   

  • Easy account creation
  • Online and Offline payment options
  • Easy to operate platform
  • Fees are high (3-11.9%)
  • No leveraged trading
  • No App

No

Deposit Fees:
N/AWithdrawal Fees:
N/ATrading Fees:
3% – 11.9%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Bitit.io Review    

  • No fees for Chinese traders
  • Super-high liquidity
  • 24/7 phone support
  • Minimal information in English
  • Possibly faking trading volume

Yes, but nothing serious

Deposit Fees:
For Chinese users – no, for foreigners – yesWithdrawal Fees:
YesTrading Fees:
0.2%

Excellent

Futures?NoDerivatives?NoMargin Trading?Yes

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Huobi.com Review    

  • Low fees
  • Excellent liquidity in EUR markets
  • Margin trading supported
  • Weak support for mobile platforms
  • No “advanced” orders (stoploss etc.)
  • Often has uptime problems when market gets hot
  • Volume lags a bit in BTC/USD

No

Deposit Fees:
Yes, in some casesWithdrawal Fees:
YesTrading Fees:
0.0 – 0.26%

Excellent

Futures?NoDerivatives?NoMargin Trading?Yes

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Kraken.com Review    

  • Superb liquidity, often the best in the world
  • Many advanced trading options
  • Low fees
  • Sometimes foreign traders have problems with verification
  • Chinese Exchange (PBoC)

No

Deposit Fees:
In most cases noWithdrawal Fees:
YesTrading Fees:
0.10 – 0.20%

Excellent

Futures?YesDerivatives?NoMargin Trading?Yes

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OKCoin.com Review   

  • Federally regulated
  • Available in all 50 states of USA
  • Good liquidity and competitive fees
  • Keeps BTC in cold storage, backed by audited reserve minimum
  • No mobile apps
  • No margin trading and short selling
  • No ACH transfers

No

Deposit Fees:
YesWithdrawal Fees:
YesTrading Fees:
0.20%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Itbit.com Review   

  • Competitive fees
  • Free deposits
  • Great support
  • Low liquidity
  • Doesn’t support mobile devices

No

Deposit Fees:
NoWithdrawal Fees:
YesTrading Fees:
0.29% flat

Good

Futures?NoDerivatives?NoMargin Trading?No

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BitKonan.com Review   

  • Wire Transfer accepted
  • Wallet service
  • Easy account creation (supports multiple countries)
  • A lot of features
  • High trading fees
  • Focuses on BTC

No

Deposit Fees:
N/AWithdrawal Fees:
N/ATrading Fees:
0.50%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Singapore.belfrics.com Review   

  • Accepts crypto deposits and fiat
  • User-friendly website
  • Competitive fees
  • Unregulated
  • Negative remarks about creating an account

No

Deposit Fees:
$10Withdrawal Fees:
up to $20.00Trading Fees:
None

Excellent

Futures?NoDerivatives?NoMargin Trading?Yes

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Coinfloor.co.uk Review  

  • Accepts BTC and Fiat deposits
  • Awesome website design
  • Account verification is a pain
  • Translation Issues with pages

No

Deposit Fees:
$10Withdrawal Fees:
$10Trading Fees:
0.5%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Bitex.la Review   

  • Easy account creation
  • BTC oriented exchange
  • Anonymous trading
  • Only accepts BTC payments
  • Exchange rates are very expensive

No

Deposit Fees:
NoneWithdrawal Fees:
0.0001 BTCTrading Fees:
0.4% up to 0.6%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Coinsecure.in Review   

  • Intuitive website
  • No deposit/withdrawal fees
  • Crazy account creation (limited countries accepted)
  • High trading fees
  • Needs more coverage (countries accepted)

No

Deposit Fees:
NoWithdrawal Fees:
NoTrading Fees:
0.25%

Excellent

Futures?NoDerivatives?NoMargin Trading?

Visit Website

Gemini.com Review   

  • Exchange and wallet service
  • Virtual wallet with MasterCard
  • Regulated
  • Not anonymous
  • Fees are expensive

No

Deposit Fees:
YesWithdrawal Fees:
$2.99Trading Fees:
0.65%

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Uphold.com Review   

  • Offline transactions
  • No registration needed
  • Fast exchange of hands
  • Unregulated
  • Physical transactions
  • Not anonymous

No

Deposit Fees:
N/AWithdrawal Fees:
N/ATrading Fees:
N/A

Excellent

Futures?NoDerivatives?NoMargin Trading?No

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Ptycoin.com Review   

Best USD / Bitcoin Exchanges

Brief History of USD/BTC trading pair

The story of bitcoin has started in 2009. Satoshi Nakamoto, the father of all cryptocurrencies have integrated many different existing ideas to create a new digital asset. After mining the first bitcoins, the value of BTC was first set by two individuals on a Bitcoin Talk thread in 2010. During the transaction, user Laszlo just paid 10000BTC for two Papa John’s pizza in Florida. At that time the 10000BTC worth about 40 USD. Things have changed rapidly ever since then, as one single bitcoin price has just recently hit the all time high value of 3000 USD.

USD was the first currency that users were able to convert bitcoins into. The USD denominated bitcoin market has a daily trading volume of 152000 BTC per day, which accounts for almost 25% of the market. The total market capitalization of bitcoin is equal to the total number of BTC mined which is 16 million times the current bitcoin price. This market capitalization has recently hit the all time high of 50 billion USD when bitcoin prices were on the peak.

The currency of USD is used worldwide, not just in the United States. Seven additional countries have adopted USD as a national currency and 89 more keep their local currency trading tight relative to USD. Many times USD is referred to as global reserve currency. The popularity of USD increased after the WWII when most countries switched to hold their reserves from gold standard to USD through the Bretton Woods agreement. The relative strength of the US economy supports the value of its currency. The current annual US inflation rate is 1.6% and it has been below 4% in the past 20 years.

Exchange USD to Bitcoin

Exchanging USD to bitcoin and selling bitcoin for USD is very easy on the cryptocurrency market. Almost all trading platforms offer the solution to trade USD fiat currency against bitcoin.

You can buy bitcoins using the USD balance of your credit card or bank account. It is also possible to purchase bitcoins for USD from your PayPal account, but you can use couple of other alternative payment providers, such as Skrill, Neteller or OKPay. All of them lets you to fund your account with USD or sell bitcoins for USD.

USD/BTC Country Specific Regulation: Bitcoin in United States

The United States is often criticized for falling behind in the bitcoin regulation compared to other countries. This is because, for many years, the US government and agencies were reluctant to state their position on bitcoin. In the past, bitcoin has been perceived as a currency used by criminals on the dark web mainly due to the pseudo-anonymity feature. However in the recent years, as bitcoin gained bigger and bigger popularity, this negative tag has been disassociated from bitcoin. The governments no longer see bitcoin as a vehicle for money laundering. The FED stated in 2014 that Bitcoin does not present a threat to economic activity.

The regulatory landscape in the US is now more definedthan ever in 2017. As of January 1st, 2017 there are now 13 states with have clearly defined positions in regards to the blockchain and digital currency industry. The other states just remained in the gray area. Due to the stricter than average money transmitting regulation in the United States, the bitcoin service providers have limited capabilities.

The regulation and taxation of Bitcoin changes by each state in the United States. Bitcoin friendly states include Texas, Kansas, Tennesse. Texas was the first to release their official position that selling bitcoin does not require a money transmitting license. South Carolina and Montana do not have money transmission laws or regulation on bitcoin. On the other side of the coin, the most hostile states for bitcoin include Hawaii and New Mexico, where it is explicitly required to have a money transmitting license in order to trade with bitcoin and cryptocurrencies.

Cryptocurrencies are considered as virtual currencies by the IRS which are treated as property thus required to be taxed for gains and losses.