Fiat Money Deposits on Crypto Exchanges via SEPA Transfer?
The platforms bear names such as Binance, Kraken or Bitfinex. But what are the best Bitcoin exchanges? We investigated what the different offers are and which coins and services can be expected from the respective providers. In addition, the question is also to be clarified for what one needs such a crypto exchange at all and which alternative forms of trading or buying exist.
The best Bitcoin exchanges: What exactly is a crypto exchange?
A Bitcoin Exchange is nothing more than a trading place for digital currencies. It is probably easiest to compare the processes with a completely conventional exchange, for example with the German Stock Index. This is where company shares are traded. In the case of online currencies, the assets are focused on the currencies. In stock trading, the aim is to buy various assets at the lowest possible price in order to be able to profit from price increases (and also dividends).
It is no different with digital coins. The price is decided by the market. If you find a seller for a certain price, you can buy yourself. But if you are interested in selling, you need a trading partner who is willing to sell at the offered price. Since this does not just happen directly between the parties, you need a Bitcoin Broker or a trading platform.
A market is considered to be particularly liquid if you do not have to estimate a long time period for your orders, as it can be expected that a large volume of buying and selling will occur at any given time. If this is not the case, then the price changes only slowly and it can be that personal orders can only be concluded very laboriously. In this respect, the size of an exchange is not to be neglected, since potentially more traders could be active here.
Buying or trading coins on crypto exchanges?
In summary, it can be said that Exchanges are worthwhile from exactly two different application forms. Firstly, they offer a very simple way of trading, where you can profit from both falling and rising prices thanks to the currency pairs. On the other hand, it is often the only possibility for interested investors to get the real coins into their own wallet. So there are probably a few reasons for registering with a good exchange.
The best Bitcoin exchanges: What payment methods are available?
How do the best Bitcoin and Crypto exchanges make deposits in 2019? Of course it depends on the selected exchanges, but the providers are similar in terms of their payment methods. If you use a purely cryptic network, you will only be able to access it with digital coins. In the deposit window you should see the possible online currencies that are suitable for trading on the platform. The transaction must then be initiated by yourself. For this there are the so-called crypto addresses.
The deposit is started from the personal crypto wallet. Here you will find the function of sending the coins. The necessary data for the transaction will be displayed on the deposit page of the wallet. Some Exchanges will allow you to use a simple Copy Paste procedure, which promises the correct entry of all the number sequences. How long the deposit will take depends on the network you choose. It should be known anyway that the speeds of the systems can vary greatly. In most cases, you should also receive detailed instructions on the necessary process from your personal Exchange.
Deposits with FIAT currencies
For quite a few merchants, it might be a real hurdle if only digital coins can be used on a crypto exchange for deposits. After all, you first need to have the appropriate coins. Therefore, a few providers, including The Best Bitcoin Exchanges 2020, have now responded to this problem and established a link to real currencies.
So you will be able to make deposits on one or the other exchange using FIAT currencies. An especially easy way is to use virtual bank accounts for SEPA transfers to the exchange of your choice, as those services offer IBAN bank accounts and fast and easy transfers without the high cost of SWIFT transfers. First and foremost, dollars will be accepted, but there are also examples of euros, British pounds or Japanese yen. The way in which you can deposit depends on the platform you choose.
If you want to buy various crypto currencies with a credit card, you will have to search more intensively. Bitcoin Exchanges in particular relies on the traditional bank transfer. Digital wallets such as PayPal are not likely to be found. The popular payment service provider deliberately withdrew from transactions for cryptic currencies. This is related to the in-house buyer protection, which actually means a certain security for users of the service. However, cryptic coins allow anonymous payments. Exactly this does not fit the business model of PayPal. The company cannot then prove whether promised payments have actually been made. A buyer protection can hardly be guaranteed. Nevertheless there are possibilities to buy Bitcoin with Paypal.
Buy Cryptocurrencies with Credit Card
What do you do if you have chosen a cryptic stock exchange, but there is no possibility to deposit real money here? Even digging for the different coins is often out of the question, as it is either not possible or hardly worthwhile for a simple user. And so you have to think of another way to get the tokens or get them into your own wallet. Vendors such as Coinbase offer the possibility to buy, at least as far as the coins of Bitcoin, Ethereum and Litecoin are concerned. The coins can be paid for by credit card or bank transfer.
Especially for such purchases it is necessary to consider the seriousness of the provider. The bigger and more widespread the platform is, the more likely one will be treated with the necessary care. We therefore recommend the US American crypto pioneer.
Coinbase serves as suitable platform, in order to come to Bitcoin, Litecoin or Ethereum. Now, however, it still does not help such traders who want to acquire for example Neo, Stellar Lumens or Ripple. But if you read the article with a certain amount of attention, you know that a Bitcoin Exchange is an excellent way to get previously unknown or not quite so common coins into your own wallet.
So once you have purchased Bitcoin or other tokens, you can use them in the next step to trade them on the Crypto Exchange and thus trade against other currencies. In a way, you exchange your crypto assets, similar to changing normal money. The payout is then usually quick and very easy to complete by entering your personal wallet address.
The best Bitcoin exchanges 2020: What are the costs and fees?
In a comparison of the digital exchanges you should not forget to look at fees. In practice it will actually make a financial difference if you choose a particular provider. The fee models of the Exchanges are structured very differently.
Basically, attention must be paid to payments during normal trading. Here you will be confronted with a so-called trading fee. In most cases such payments are staggered and depend on the respective transaction volume. The more units you transfer, the lower the percentage of the fee. The best Bitcoin exchanges normally range between 0.1 and 0.25 percent in terms of costs. One might also know such a cost model from one or the other stock broker, who is also based on trading volume and value.
However, the trading fees are only a part of the possible costs that may arise. You should also keep your eyes open when making deposits or withdrawals. It may be understandable that you have to live with the network fee for crypto transactions. In some cases, however, you will have to be prepared to pay an extra fee.
This is not only the case with the classic Bitcoin Exchanges, but also with service providers like Coinbase. For example, a credit card deposit is charged with a fee of 3.9% and even a normal bank transfer costs 1.45%. In fact, there are also some providers who offer various trades or payouts completely free of charge. This is of course particularly attractive from the trader’s point of view.
One possible cost element is not to be neglected and is particularly relevant for not so active traders. The so-called inactivity fee is triggered if you have not concluded any trades or other activities on the platform for a long time. In German it could also be called an administration fee. However, if such a fee is incurred, one should usually be informed about such costs in a transparent manner.
Cryptocurrencies compared to Stocks and Forex
The comparison with the stock market thus brings you closer to the basics of trading on a trading platform. The next step, however, is to go a little deeper into the global trading opportunities. The comparison with the most liquid financial market in the world, currency trading, is quite obvious. Those who have already made their experiences with Forex trading will find a very familiar picture on the best crypto exchanges in 2019.
After all, here too everything revolves around currency pairs. It is a clear sign of quality if a provider has as many such pairs as possible. Many platforms are limited to purely cryptic coins, for example. On stocks and Forex broker platforms on the other hand, you will always be able to make fiat money transfers via SEPA or SWIFT. In other cases, however, it will also be possible to deal with real, so-called fiat currencies.
As already mentioned, the regular currency market is probably the most liquid market in the world. Online currencies have created a digital parallel world, which for many people represents a point of intersection to the future financial world. Already now, the functions of the crypto exchanges can be used. By the way, this kind of trading must not only be done out of the pure desire for quick profits by trading on the Exchanges.
There is also a second reason for registering on a crypto exchange. Even at the best Bitcoin exchanges in 2019, it is often difficult to participate directly in the various digital networks. Therefore, for many, the providers offer the only real possibility to get to the corresponding tokens and then transfer them to their crypto wallet. This may seem to make sense especially if the merchant expects to gain real benefit from the possession of the coins.
Bitcoin Exchanges with SEPA Transfer – Conclusion
Even the best Bitcoin exchanges in 2020 can differ in all kinds of ways. Our test winner stands out from the crowd despite strong competition. This is also due to the easy handling, uncomplicated payment methods and the fact that you don’t need a wallet. The article reveals in a comprehensive crypto broker comparison the best crypto exchanges and exchanges 2019.
With all offers one does well to deal with the exact advantages and disadvantages. This way you can find the right Bitcoin exchange in a short time. For those who are not afraid of a somewhat higher risk and are fundamentally interested in new trading opportunities, Bitcoin robots could also be an investment opportunity. The not entirely undisputed offers promise trading with the help of algorithms. The largest providers include Bitcoin Code, Bitcoin Revolution and Cryptosoft. However, one should be warned against high deposits. Such providers are nothing more than an experiment.