Bitcoin Exchange Review
Cryptocurrency exchanges function in an identical manner as the banks. A trader has to initially make some deposit to the exchange in the form of the currency that the concerned exchange accepts and subsequently, he can use the balance in the trading account for trading. Contrary to the transactions that take place over the counter, in these dealings, traders never stand the chance to lose the money, failing to complete the deal; so long the exchange itself is not getting into any financial laundering activities.
How the exchange executes the buy and sells orders?
Exchange of crypto currency in the digital currency exchange takes place through buying and selling orders that the software matches against each other. Just pick one of crypto exchanges and choose best rates. Bids or purchase orders are meant to buy new Bitcoins, while sell orders are basically the offers that relates to the selling of Bitcoins at the minimum price for each coin. You check latest exchange rates using our site. In case the bid price exceeds the value of the sell order, one can exchange the coins or it can be eliminated from the order book. Hence, at any given time, there will be a value, exceeding which there will be no further buy orders and a price, below which no further exchange rates would exist.
Why traders should not use soft payment methods while trading digital currencies?
Exchanging the digital coins with other types of currencies paves the way for some issues related to charge back fraud to arise. Payment instruments like debit and credit cards, as well as an internet money transfer system can be booked for a maximum span of 90 days, post the date of transaction. On the other hand, in the top exchange list, Digital currencies function more as liquid cash and once a trader spend Bitcoins, it is not possible to pull back the amount spent. Hence, when a trader trades with soft currencies like a credit or debit card or uses the online money transfer method, he stands exposed to the chances of charge back, once he have remitted the digital currency. It is possible for the trader to initiate a charge back by not receiving the goods, or in case a stolen account was involved in the transaction, the real owner of the account can start this process after such event comes to his notice. Hence, it is always suggested that traders should refrain from the use of soft payment methods for trading with Bitcoins, especially if you are dealing with a person for the first time.