By Simon M Kate
The financial world has evolved over time, and now involves various complex exchanges. Among these advancements is the emergence of online trading whereby people can perform transactions on the internet with others who are thousands of miles away. In fact, the bulk of international business is carried out on the virtual platform where large amounts of money are transferred at the click of a button. Most businesses have online sites to cater to distant clients, while there have emerged businesses that are solely online and have no physical addresses.
Among these online exchanges are the use of bitcoins to trade in property and stock. It would be cumbersome to use them as an individual, and you need the help of a bitcoin broker. They are normally found in bitcoin brokerage firms that cater to clients’ needs. The following are guides to choosing a bitcoin broker:
Liquidity
You will need to find a firm that is stable enough to handle your bitcoins to ensure maximum returns on your investment. The credibility of a broker is measured using the liquidity index. This is the ability of a firm to trade in your bitcoins and give profit while retaining its value. A broker with a high number of sellers and buyers has increased liquidity. To get the broker with the highest liquidity, search for the one that has the highest trading volume.
Cost of trading
Brokers rely on the volume of bitcoins to sustain their trade. The more bitcoins they trade in, the more the profit they make. They charge a certain percentage on the trader depending on the number of bitcoins. However, the method of calculating costs by way of percentage proves to be very expensive to the broker over time. Choose the firm that uses more stable rates to avoid sudden fluctuations in profit.
Proximity
The trade in bitcoins is a relatively new concept. This means that there are not yet any regulations governing their exchange due to its lack of highlighting by the media. However, some countries have started assuming control over the activities of brokerage firms to prevent the proceeds from being channeled into illegal business such as drug, money laundering and fraud. Choose a firm that is nearest to your locality to enable fast contact in case of anything.
Accessibility
Being an online exchange method, bitcoins are prone to hacking by malicious parties. Hacking would be primarily to alter figures, cause a drop in the value of bitcoins, and profit the hackers. Choose a firm that uses the latest anti-hacking software to ensure the safety of your money.