Buying your first bitcoin is a big step for any cryptocurrency investor. It marks the point where investors overcome their uncertainty regarding cryptocurrencies and take a dip (or a dive in some cases) into the market.
There are many options to choose from when making that first purchase and this can sometimes prolong the decision even further. Here are some of the top exchanges you should consider when buying your first bitcoin.
You can find a detailed list of the best cryptocurrency exchanges on Cryptimi.
Coinbase is widely considered as one of the best cryptocurrency exchanges for beginners. Its interface is extremely intuitive to navigate and all of the steps to making your first purchase are simplified.
The exchange allows users to purchase bitcoin and other top cryptocurrencies in a number of ways. Users can fund their account through bank transfer or can also purchase directly with a prepaid debit or credit card.
Coinbase also complies with regulations which means that users will have to undergo a stringent KYC process when signing up. Users will need to provide personal details such as date of birth and address and will also need to verify their identity with a government issued-document, drivers license, or national id card.
Don’t fret, however, as there is increased protection to your funds when using a regulated crypto exchange.
Kraken is considered to be another top cryptocurrency exchange where you can purchase bitcoin with fiat currency. It is highly popular in Europe and facilitates the highest volume of bitcoin trading for the Euro.
One of the main advantages of Kraken over Coinbase is the fee schedule. While Coinbase charges higher fees to purchase bitcoin because of their convenience and market dominance, Kraken has low fees at 0.16% to make a limit order and 0.26% to make a market order.
A limit order provides liquidity to exchanges helping them rank among the top cryptocurrency exchanges in terms of service and therefore avail of lower fees. The fees will decrease based on the amount of volume traded.
Kraken also allows users to cryptographically verify that the exchange holds the funds in their accounts. This is another attractive feature since most exchanges provide no way for users to verify that the exchange actually holds their funds.
If you are willing to pay extra for convenience, CEX has a quick-purchase option whereby users are quoted amounts of cryptocurrency they can buy for fixed amounts or custom amounts of fiat currency.
Although this is a convenient option, CEX charges a 7% fee for this service. The quoted amount is recalculated every 120 seconds. However, if traders sign up and delve further into the main exchange, they can avail of lower fees similar to Kraken to trade.
Top Exchange To Buy Bitcoin Takeaways
All three exchanges mentioned here are top contenders when for purchasing bitcoin, but you can find an updated list of the best Cryptocurrency Exchanges on Cryptimy website.
It really depends on what you are looking for. For instance, Coinbase has higher fees but is extremely straightforward to use. On the other hand, Kraken is a bit more complicated, but traders can avail of lower fees and verify that their funds are on the exchange. CEX has the best of both worlds with a convenient option to quickly buy. It is also a cheaper alternative if users wish to purchase a bitcoin found on the main exchange.