In 2008, Satoshi Nakamoto founded the first-ever cryptocurrency, Bitcoin. At the time, a paper explaining its mechanics and the ideology behind it, was published through the Cryptography Mailing List.
The first Bitcoin software client was released in 009, and Nakamoto collaborated with many other developers on the open-source team, never revealing his identity. By 2011, the enigmatic Bitcoin founder had disappeared. His peers then, understood how valuable this cryptocurrency was and worked feverishly to develop it to its maximum potential.
The first Bitcoin exchange
Around October 2009, the world’s first Bitcoin exchange was established, and by November of that year 4 million Bitcoins had been ‘mined.’ At the time, $1 was the equivalent of 1,309 Bitcoin – a fraction of a penny. When one considers how widely Bitcoin fluctuates, that was a real steal: it hit the $10,000 mark within eight years.
Bitcoin is becoming more and more popular, especially now that it’s worth a small fortune for each coin! There are extensive discussions and debates about cryptocurrencies and how to procure and earn Bitcoin. There are a lot of ways to add Bitcoin to your wallet ranging from Bitcoin Faucets to taking on micro-tasks in exchange for Bitcoin, but what is a Bitcoin exchange?
Simply speaking, a Bitcoin exchange is an online marketplace that enables traders to buy or sell Bitcoins using various fiat currencies or altcoins.
But really, this is just scratching the surface of this vast digital world. If you want to understand more about cryptocurrencies, specifically, Bitcoin or cryptocurrencies exchanges, then read on.
What does cryptocurrency mean?
Today, Bitcoin or cryptocurrencies have become a worldwide phenomenon. It still seems somewhat geeky, and most people don’t fully understand Bitcoin, but governments and organizations are aware of its importance in the present scenario.
Satoshi Nakamoto, the invisible inventor of the most famous cryptocurrency, the Bitcoin, wanted to establish a peer-to-peer decentralized digital cash system.
The failure of many forms of earlier digital cash systems led Satoshi to create a system that did not have a central cash authority. This gave birth to cryptocurrencies. In this system, there’s no server.
What is a Bitcoin/Cryptocurrency exchange?
To put it simply, a cryptocurrency exchange is an exchange for buying, selling, and exchanging cryptocurrencies. What this means is that users can either buy cryptocurrencies using traditional currencies – so-called “fiat currencies” – or other digital currencies.
Different exchanges may offer different types of cryptocurrencies, can have different terms, policies, payment methods, and fees. Moreover, some cryptocurrency exchanges may have geographical restrictions.
Also, certain exchanges simply offer an experience that will be more to some people’s liking. Security, user-friendliness, functionality, and design are all factors that can play a significant part in which exchange suits you best. Generally, cryptocurrency exchanges can be sorted into the following types.
Your first step into the cryptocurrency world will most likely occur through an exchange or brokerage. There are two main types of exchanges that we will discuss in this guide.
Read more: What is Bitcoin Worth?
Two types of exchanges
The first type of exchange is called Fiat Exchanges. These exchanges allow the direct conversion of US Dollars, Euros, and most government-backed currencies into cryptocurrency.
The second type of exchange is called cryptocurrency to cryptocurrency exchanges. These allow cryptocurrencies to be traded with each other. Crypto to crypto exchanges will be covered more in-depth on the second half of this page.
Depending on what cryptocurrency you are trying to obtain, you will need to use certain exchanges.
An exchange connects buyers and sellers just like a regular currency exchange (forex). Traders and buyers can buy or sell Bitcoin and other cryptocurrencies by choosing a market order or a limit order. In a market order, a trader enables the exchange to trade his/her coins for the best prices in the digital market. In case of an order limit, the trader asks the exchange to trade his/her coins for a rate that is below the current ask or over the present bid, contingent on whether they are buying or selling.
Usually, cryptocurrency exchanges designate traders as makers or takers. When a participant places a limit order, the exchange enlists it in its order book till the price is matched, and the trader is called a maker. In the case of takers, the trader places a market order that is immediately filled.
All Bitcoin exchanges impose transaction fees that are applied to each transaction conducted within the online marketplace. The fees depend on the number of Bitcoin transactions that a trader conducts on the exchange.
Signing up an account
For you to be able to transact on these exchanges, you have to register with the exchange and undergo a few verification processes to determine and authenticate your identity. After the verification process, the user has to transfer money into their account before they can start trading cryptocurrencies.
Various exchanges employ different payment methods such as wire transfers, credit/debit cards, bank drafts, money orders, or in some cases, even gift cards.
Deposits and withdrawals come at a fee, depending on the chargeback risks of the medium. For instance, drafts and wire transfers pose a lesser risk of chargeback than, say, PayPal, or a debit card.
Also, apart from the transaction fees, traders may need to incur currency conversion fees. This depends on the currencies that are acceptable to the exchange. Transacting on an exchange that approves your local currency is a great way to avoid Forex fees.
Nordikcoin: Your best Bitcoin exchange
With NordikCoin, you can buy Bitcoin, and other leading cryptocurrency assets using your local currency and preferred payment method. Our exchange offers different types of payment options to purchase Bitcoin such as credit cards, debit cards, etc.
NordikCoin was established in 2019 by a team of lawyers, Bitcoin technologists, and auditors. This team of professionals ensure full regulatory compliance, including strict enforcement of routines and procedures relating toKnow Your Customer (KYC),Anti Money Laundering (AML) andCounter-Terrorism Financing (CTF) measures.
NordikCoin is licensed to buy and sell cryptocurrencies, including providing hot and cold wallet storage. The company ensures positive client ID verification through the use of a multitude of official electronic ID solutions.
Our goal is to serve a vast array of European countries and provide sufficiently high limits to customers.
Customers can buy Bitcoin on our exchange for low transaction fees. We offer different account levels contingent on the level of verification offered by the user. The buying limit of each account type varies.
NordikCoin is a market-leading Bitcoin exchange that is easy to use and suitable for the newbie trader.
Read more:The History of Bitcoin
Factors in choosing the best Bitcoin exchange
With NordikCoin, you can buy Bitcoins in under 5 minutes. It’s free and comes with an easy-to-use app! You can buy, sell, exchange, and trade Bitcoin on our platform—making us one of the most user-friendly sites. After purchase, you can secure your Bitcoin with NordikCoin’s encrypted wallet. And there you are, you can spend your Bitcoin at thousands of merchants accepting the cryptocurrency. We are a prominent, free storage option in the community, and one of the most easy-to-use apps out there. NordikCoin is also a great storage option for investors, since it’s software-based, rather than online providing an extra layer of security.
Information on the exchange
Basic details on an exchange such as the founders, market focus, etc. can be a great first step in your search for an exchange.
Bitcoin is not regulated in many countries, but that’s changing fast. The scenario might be a lot better than it is a couple of years down the line. Governments are searching for ways to gain some sort of control over cryptocurrency transactions. The authorities need to monitor Bitcoin is due to the possibility of money laundering, terrorism funding, and smuggling that an unregulated currency can enable.
When Bitcoin first appeared on the market, the cryptocurrency was often purchased directly from a cryptocurrency company. It’s no longer common to make this type of transaction due to the complexity of the computing behind the currencies. Today, the most common way to purchase cryptocurrency is through a private exchange.
A cryptocurrency exchange acts as a virtual stock market where cryptocurrency from several companies is the only investment offered. Matching orders are put together between sellers and bidders by a cryptocurrency broker. Because exchanges are privately held and not regulated, prices can vary significantly between exchanges and brokers.
Many cryptocurrency IRA facilitators run a private peer-to-peer cryptocurrency system and require customers to use that system while others shop between multiple open exchanges.
Choosing the best Bitcoin exchange platform for your specific needs may be a time-consuming and challenging process. Do not forget to pay attention to the fees, reputation, security, verification processes, and geographical services an exchange platform has to offer.
Get started with NordikCoin today; one of the easiest, cheapest, and safest places to go for all your Bitcoin needs.