It’s no use studying the market, setting the amount according to your risk profile, and then handing over your entire investment in some scam. For this reason it is so important to correctly choose not only the asset, but also the exchange for trading cryptocurrencies.
Bitcoin’s decentralized feature allows for free trading between its users, known as p2p. In order to avoid risks in these transactions, exchanges emerged, which copied the model of traditional brokers, charging fees in exchange for this intermediation and settlement service.
How to choose a broker?
Exchanges, or crypto-asset brokers, such as the Bitcoin Market, are electronic platforms that facilitate the purchase and sale of cryptocurrencies and tokens. These exchanges only connect buyers and sellers to ensure that each one receives what was traded, in a practical and secure way.
The first step in choosing an exchange is to research its reputation. The Bitcoin Market is proud to be among the 25 most trusted exchanges in the world for trading cryptocurrencies, according to a study conducted by the Blockchain Transparency Institute (BTI).
It is very common for inexperienced customers to opt for exchanges with lower rates, forgetting to consider that during times of great fluctuations, the quotation on these exchanges tends to be very far from the leaders, such as the Bitcoin Market.
Bitcoin Risks
Bitcoin and other cryptocurrencies are a constantly evolving technology. There is a technological bottleneck that limits the number of transactions, called the scalability problem. There are other networks, dozens of times less secure than the Bitcoin blockchain, but with greater capacity.
The cryptography itself may someday be cracked, the technology responsible for securing addresses through private keys, the password needed to authorize transactions. It will be necessary to update the Bitcoin network, and this depends on consensus, that is, the approval of the vast majority of users.
As a writer, Richard is an advocate of blockchain technology and cryptocurrency in general. He writes about all things from cryptography to economics, with a focus on how it applies to cryptocurrencies. He is also passionate about writing about topics such as decentralization, open-sourced software development, and copyright law.
