Top 3 Bitcoin Trading Platforms (2021)
Bitcoin trading platforms have grown to become some of the most popular websites on the Internet in 2021, with traffic of millions of users each and every day using some of the largest Bitcoin trading platforms and that being a wide and diverse range of hundreds of different platforms available in order to trade the world's number one cryptocurrency.
Unlike many other sectors where the development of the kinds of platforms that support the industry can be relatively slow and gradual, the cryptocurrency market is developing at breaking its neck speed and the platforms with in it are significantly more advanced than even a few years back, and dramatically different in the way that they operate compared to the original Bitcoin trading platforms from 10 years ago.
This guide takes a deeper look into the top three Bitcoin trading platforms in 2021, starting with a look at what Bitcoin is and how to select the best Bitcoin trading platforms, before finishing off with a look at three of the top Bitcoin trading platforms available in 2021.
What is Bitcoin?
What is Bitcoin?
Bitcoin is a digital currency running on a blockchain having smart contracts and fast transactions, Bitcoin is known for being the most valuable crypto by market cap with its per-coin value soaring by over 400% since the start of the year alone which was largely driven by institutional investor liquidity.
Bitcoin was the first crypto to exist and when launched returned the power of finance management to the people thanks to its decentralized platform that lets BTC holders transact without bank intervention, this was important at the time as the effects from 2008’s financial crisis were still looming and causing havoc in financial markets around the globe.
Bitcoin enabled users then and consumers and investors now the ability to manage assets away from the control of banks that can freeze or halt access to holdings at will, this made Bitcoin popular among financial-independence advocates and investors that leverage its potential and hype for profits.
Bitcoin runs using the processing power lent by a network of computers from around the world that support its P2P platform and the operations it processes, BTC is among the most valued of all commodities and for the first time this year reached the unprecedented milestone of a $1 trillion dollar marketcap.
Why Does Bitcoin Have So Much Value?
Bitcoin is the world's largest crypto by market capitalization with a little over eighteen of its twenty-one million coin supply still available to trade, this limit is hard-coded in its protocol and cannot be changed as this limit is designed to create scarcity to enable its value to improve over time.
Bitcoin is decentralized and functions over a dispersed peer-to-peer network instead of a bank which is possible by the participation of miners who run software to validate blockchain transactions, miners earn rewards in the form of Bitcoin which are created every ten minutes and the amount of BTC given to miners is halved every four years.
Miners earn less now than long ago which creates urgency as scarcity increases with time which is why its value is expected to grow, Bitcoin is inflation-resistant and easier to manage than physical assets like gold and silver which will increase its value over as demand grows and its supply swells.
BTC is an attractive investment and store of value to those wanting to diversify conventional portfolios in the wake of a pandemic-havocked economy that left some assets in shambles, with BTC being easier to trade and store than fiat-backed assets, Bitcoins have become true-value assets having valuations only poised to rise alongside its widespread adoption among investors around the world.
How Does Bitcoin Work?
Bitcoin is a virtual currency and decentralized system that records transactions to a distributed ledger known as a blockchain, Bitcoin miners support the network and its requests using complex computer rigs that solve sophisticated puzzles in an effort to confirm transactions in groups known as blocks, successfully adding a block to the blockchain record will earn the miner a small amount of Bitcoin.
Bitcoins are stored on blockchain and accessed using wallets and private keys and can be sent to or from any wallet with ease, and thanks to growing numbers of miners, these transactions typically commence in a matter of minutes and at fees that are often cheaper than bank-assisted transactions.
BTC was created to be a store of value and liquidity outside of government and central authority control, this lead to BTC being known as digital-age gold as its price is now used to assess the health of crypto markets as a whole with many altcoin prices fluctuating in correlation with the movements of Bitcoin.
Bitcoin works simply to front-end users as they are bought on exchanges and then added to wallets from which they can be exchanged to external accounts, they can be received to exchange-issued wallets as well which is as easy as copying its address and providing it to the sender.
How to Select the Best Bitcoin Trading Platforms
As exchanges grew confusion among traders over which is best has too which is understandable given that more exchanges exist now than ever before, the growing list of options is underlined by added or hidden fees that can easily be overlooked in fine-print disclaimers though are important to be aware of as trade fees can quickly consume profits and especially the ones earned from low-liquidity trades.
Crypto has reached nearly every markets and with new traders pouring into crypto markets in volumes not seen before came platform offers designed to allure new users and investors to their exchange, and given the many lucrative tools and features available, traders can now leverage a range of offers and value propositions to their benefit.
The ability to be more profitable is the greatest offering to be had from an exchange which Kraken is known for as they support margin trades with up to 5x leverage which allows traders to leverage the returns of a larger position for a fractional up-front investment, margin trading can magnify losses as well as profits and when executed on an appreciating asset will produce much greater returns than if invested in a spot-traded asset whose returns are based only on cash-invested amounts.
Another exchange whose reputation encompasses their ongoing commitment to giving traders value, Binance provides great value to traders of all experience levels with a suite of trading tools and financial products suitable for profiting from a range of market conditions, they enable traders to amplify profits with margin trades which can be executed at one of the lowest fees in the industry, all trades are made at a 0.1% fee and even lower when using their own coin named Binance Coin (BNB) to place trades.
Top 3 Bitcoin Trading Platforms
PrimeXBT
PrimeXBT is one of the world's leading Bitcoin trading platforms and the fastest growing trading platform in the cryptocurrency space since its launch in early 2018, with that being a wide range of different tools and listings that have been integrated into PrimeXBT in the past years.
PrimeXBT today manages up to $7 billion of global trade every day, and lists some of the world's most popular financial assets including range of cryptocurrencies that included BTC, ETH, LTC, and EOS, as well as some of the world's leading traditional assets like stock indices such as S&P500 and FTSE100, forex pairs such as USD/EUR and AUD/CAD, and commodities such as gold and oil.
PrimeXBT has built a reputation for providing professional Bitcoin trading services, and as well as being able to use the tools available on PrimeXBT to generate an income easily, PrimeXBT has also developed a reputation for being one of the most secure Bitcoin trading platforms in the world in 2021.
PrimeXBT implements a range of bank-grade security measures including cold storage of digital assets with multi-signature technology and hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher, with this leading to the platform never being hacked throughout its entirety of operation and this being as a result of the implementation of these powerful security features.
Coinbase
Coinbase is known for having one of the easiest crypto-buying processes of any other platform and since launching in 2012 have evolved their features and interface to be among the simplest of any other to navigate, supporting users from many parts of the world with world-class support and trading tools it has become the largest and most-traded-on crypto exchange in many of the countries that it operates.
Serving traders for nearly a decade as a registered and licensed exchange they provide secure trading environments using bank-grade protection with the help of cryptography and dedicated security teams that monitor the platform for suspicious activities at all times to safeguard customer data and assets
As one of the best Bitcoin trading platforms you can assume they offer advanced trading tools as you would be right, offering a second platform named Coinbase Pro, advanced trading tools catering to the needs of sophisticated investors can be leveraged for profiting from a range of market conditions.
Having high market liquidity and FDIC-insured coverage, Coinbase users can trade in confidence knowing assets can be quickly liquidated and stored in a wallet secured by crypto-security protocols that ensure user funds/data remain protected, as such, they are a good choice for beginner and seasoned traders as well as for those prioritizing the peace of mind trading experience a platform allows customers to enjoy.
Binance
Binance is a popular crypto exchange catering to the experience levels of all users with tools and coin selections that satisfy even the most sophisticated of traders, whom of which enjoy their new features, proactive community, and the ability to buy Bitcoins and altcoins using one of over forty fiat currencies.
This platform has a coin of its known as Binance Coin (BNB) which when used to open or close positions reduces the already low fee of 0.1% even more, which allow users to retain more of the profits earned from Binance Futures or margin trading which are available with up to 125x leverage.
Binance is capable of sustaining quick speeds during peak trading hours which is great for users whose trades and profits rely on real-time data with no latency interference, this is vital to successful trading which is easier to achieve when using their advanced trading platform and suite of tools.
Binance has high liquidity and average daily trade volumes of over five-hundred thousand Bitcoin and with three years in the business during which it earned the title as the biggest exchange by market cap, it is a trusted and credible exchange offering tools suiting the needs and investment goals of all users.
Final Thoughts: Top 3 Bitcoin Trading Platforms
While there are hundreds of different Bitcoin trading platforms available for traders in 2021, there are a small group of platforms at the very top of the cryptocurrency market that see the use usage of millions or even talent tens of millions of traders every day and asked some of the largest and most advanced websites in the world.
The three platforms we’ve selected are three of the best and provide a range of unique opportunities to be able to interact with the cryptocurrency market profitably.
You like to learn more about the three platforms that we would select as some of the top Bitcoin trading platforms, check out PrimeXBT, Coinbase, and Binance.