Bitcoin trading has become increasingly popular in recent years. Bitcoin, or BTC, is a digital currency, otherwise known as a cryptocurrency. Unlike fiat currencies (GBP, USD, EUR, ZAR) which are backed by central banks and regulated by government, Bitcoin does not operate in that way. It is independently created by open-source software, in a peer-to-peer fashion. BTC can be mined by powerful hardware and software programs, and its total production is capped at 21 million, courtesy of an algorithm. Presently, the number of BTC in circulation is 16,204,575, and the currency has a market capitalization of $18,647,900,819. Over the last 24 hours, some 287,402 BTC were exchanged, at an average price of $1,150.78 per BTC. For traders, this information is especially useful at trusted BTC trading sites.
How Do You Know Whether a Bitcoin Trading Site Is Safe and Secure?
Since Bitcoin is unregulated, it can prove challenging to find a Bitcoin exchange on the Internet. These virtual exchanges allow you to convert fiat currency into virtual currency. More importantly, many trading sites allow you to actually trade BTC as part of a broader range of financial instruments comprising other currency pairs – major pairs, minor pairs and exotic currency pairs. Currency traders can dabble in the cryptocurrency market in much the same fashion as traditional FX trading. Over the years, many BTC traders received a rude awakening after a major Bitcoin exchange – MtGox – shuttered and traders lost a fortune. This brought into question the viability of traditional BTC exchanges, and how reputable they really were. Nowadays there are a handful of highly regarded Bitcoin trading sites, including Coinbase, Bitstamp and BTC-e. Bitcoin enthusiasts typically rely on the reputation of the brand, courtesy of trader reviews and other web-based sources of verification.
Useful Tools to Evaluate Bitcoin Trading Sites
One of the most useful tools used to evaluate sites is the web of trust (WOT) browser add-on. This crowdfunded plug-in has been in operation for 10 years, and it is trusted by millions of users around the world. It’s the way it works that is so remarkable. First of all, WOT is fully compatible with all browsers. Whether you’re running Google Chrome, Mozilla Firefox, Safari, Opera, Explorer or any other reputable browser, you will be able to use the WOT plug-in to maximum effect. It designates safe BTC trading sites with a green traffic light. Even before you’ve clicked on the URL, it will display the green light inside your browser results. If the Bitcoin trading site has been deemed unsafe, it will be highlighted with a red traffic light. These are the clearest indicators for users. Armed with the web of trust and user reviews, traders can safely enjoy BTC trading online.
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