Bitcoin (BTC) has rapidly become an investment vehicle in its own right in recent years – so better compare bitcoin right. But just like stocks or commodities, the price of bitcoin fluctuates. Buying bitcoin can be done in several places, including online brokerage platforms. However, prices can also vary between each broker. Therefore it is advisable to compare the different providers before buying bitcoin. Below you will find a handy comparison tool which makes comparing bitcoin sellers a breeze!
Cheap bitcoin buying
Will this be your first bitcoin purchase, or do you already own bitcoins but want to double check that you’re buying from the cheapest provider? Prices vary between providers. In some cases, these differences can be quite significant, especially if you buy bitcoins more often. The reason for these price differences will be explained later on this page. Because of these price differences it is important to find out what is important to you when it comes to buying bitcoin. Do you want extra good service, or do you just want to buy bitcoin cheaply? These are things you should consider before comparing providers.
Compare bitcoin prices easily
If you are planning on making your first bitcoin (BTC) purchase and have done a little bit of googling, you have probably already seen that there are many different providers. There are quite a few brokers and exchanges in the UK, so there is plenty of choice! However, this also means that the bitcoin prices differ from each other. To ensure that you do not have to scour each individual broker’s website, Crypto Insiders has a handy bitcoin price comparator for you above.
Why Compare Bitcoin?
The bitcoin adventure you are embarking on as an investor is most likely not one that will last just a week. Many investors invest in bitcoin for the long term. Although buying bitcoin does not always have to be with the same broker, it is nice to have a relationship with a single party. After all, trust in a provider is worth its weight in gold (or bitcoin).
Comparing bitcoin prices will help you get a better overview of the current market. Some providers offer cheaper prices than others, and these differences can be large or small. But as you read earlier, many people invest in bitcoin for the long term. So, if you buy bitcoins every month, you want to make sure you are not paying too much. On an annual basis, this can add up considerably. Comparing bitcoin sellers is therefore necessary to get the most out of your investment.
What is the difference between a broker and an exchange?
Bitcoin is sold in many different places. You can sell Bitcoin through a cryptocurrency exchange, a broker, or even through an online marketplace. The latter is not recommended due to the risks involved. The first two options are the most popular ways to buy bitcoin. But what is the difference between a broker and an exchange? Let’s start by finding out what a cryptocurrency exchange is exactly.
A cryptocurrency exchange is a trading platform where traders can trade cryptocurrencies against other currencies, such as other crypto currencies but also fiat currencies like the euro. This crypto is traded at the current market price which is determined by all buyers and sellers on the market. Well-known cryptocurrencies exchanges are Binance and Coinbase. Such trading platforms are especially attractive for the more experienced traders who want to actively place trades.
By buying low and selling high, a trader can generate profit, however this is of course not as simple as it may sound. An important aspect of trading on an exchange is that you first have to create an account. After you have gone through all required processes and bought your crypto, you will notice that your cryptocurrency will be added to your exchange account.
Crypto that you buy through an exchange will not be placed in your own wallet. However, you can send your crypto from your exchange account to your own wallet. The situation is slightly different with a broker. While you buy bitcoin on an exchange for the current market price which is determined by the traders, the bitcoin price at brokers is determined by the broker itself. You can compare it to an apple which you can buy in the market place as well as in the supermarket.
In the marketplace you can, so to speak, negotiate with other buyers about the price of the apple, but the price of the apple in the supermarket is fixed. The advantage of buying bitcoin from a broker is that it is often a UK company, with a british-speaking customer service and payment methods used in the UK. In addition, the broker will send your crypto to your own wallet. After you purchase bitcoin, you will receive your BTC in your own wallet, so your crypto is immediately safe! But as you may have noticed, brokers often charge different prices than exchanges. Why is that?
Why do brokers and exchanges use different bitcoin prices?
The BTC price stems from the basic principle of supply and demand. There are currently a certain number of bitcoins in circulation. People selling bitcoin are offering them for a certain price on the market. If someone wants to buy bitcoin they can accept this price. This happens on large cryptocurrency exchanges in huge numbers simultaneously and thus the bitcoin price moves in a certain direction.
If more people want to sell than buy, the price will drop as demand is falling. Conversely, if more people want to buy bitcoin, the BTC price will rise as demand increases. As explained in the previous paragraph the price setting of brokers is slightly different. Brokers namely set their own price. The basis for this price is the general market price.
On top of this are transaction fees and other costs. These costs are always clearly indicated on the website of a broker and are actually the margin that brokers charge to be able to offer you a good service. Should you encounter a problem, you can often directly contact the UK customer service, something you will not encounter with almost any cryptocurrency exchange. There is however another important factor which explains the price differences between exchanges and brokers. The bitcoin price that a broker uses is automatically calculated based on the aforementioned factors; the market price and costs.
However, it is often the case that this price is not updated every second. Once the bitcoin price makes a wild fluctuation, some brokers may lag behind with their price. This is why comparing bitcoin is wise, as it can help you save money by finding the cheapest bitcoins.
Tips on comparing bitcoin providers
Want to compare bitcoin sellers? Then read here some tips which will make your search a little easier. Firstly, it is important to get a few things straight. Which payment method do you want to pay with and do you already have a bitcoin wallet? Once you know that you can compare bitcoin prices. But what should you look for when looking at the various bitcoin providers? One of the most important aspects of a bitcoin broker is the reliability of the company.
See a good bitcoin price? Google the broker’s name and try to find experiences with the broker. A useful platform for this is Trustpilot. Here customers can post reviews of a company and also a small description. Don’t just look at the 5-star reviews, also look at the 3-star and 1-star reviews.
This will give you a complete picture and an idea of how a broker deals with any problems customers may have. Also research what verifications are required before you can buy bitcoin from a broker. Nowadays you need to verify your identity extensively due to increasingly strict regulations. But how does a broker handle this and what verifications do you need to go through? You can find out by reading the information on the broker’s website.