Which Bitcoin Exchange Is Best?
There is no best bitcoin exchange, but everyone has their favorite. When choosing a bitcoin exchange there are a few factors that will help narrow it for you:
How many bitcoins you want to trade: If you are a large investor you need to choose an exchange that has high liquidity in the order books to make sure your trades are filled without moving the price too much. You also want to find an exchange that has a Maker-Taker or Volume based trade fee model.
Your local currency: Most bitcoin exchanges use USD, CNY or EUR as a fiat trading pair. If you cannot deposit these currencies you’ll need to use one of the less popular exchanges.
Your country of citizenship: Bitcoin laws vary throughout the world, specifically the Know Your Customer / Anti Money Laundering laws. What this means is some bitcoin exchanges block users from certain countries because they don’t comply with the local laws. The United States has some of the strictest policies. Though bitcoin is perfectly legal in the United States, there are some bitcoin companies that still don’t want to do business with US customers. That’s fine, there are several regulated U.S. based bitcoin companies you can use.
How you want to pay for the bitcoins: There are tons of ways to buy bitcoins. You can use your bank account, credit/debit card, Paypal, Cash, etc, but not every website accepts all these payment types. Most bitcoin exchanges will allow you to wire money directly to and from your Banks checking or savings account. This is how most people invest in bitcoin. You can use credit cards or paypal, but it often costs more to buy bitcoin with these payment methods. There is also bitcoin price markup for paying in Cash because there is a high demand for people who want to avoid the KYC/AML laws.