Ok!, so if you guys are here is because you already read all about bitcoin, you are excited and ready to make some profit on your BITCOIN investment.
So I decided to write about this because I see accounts selling bitcoin and other cryptos on eBay charging 200% of the actual price and I consider it a ripoff, these eBay sellers are simply taking advantage of uninformed people. This is meant for US residents, I am not a financial advisor and I have not been paid to write this article, I am doing it because I simply want to inform and help the community. I will recommend the exchange that I use but please feel free to try other exchanges available.
The exchange that I have been using for the past 10 months is www.gemini.com, I started using it because a friend that had been buying Bitcoin for a while used it, but I have to tell you that I have found it is the best so far in my opinion, it has some limitations but I am glad I use it and the reasons are,
For every $1,000 that you invest the fees are only $2.5 so we are talking of a 0.25% commission fee. This translates into you paying less fees and having more money available to buy more Bitcoin that will appreciate in value, so thumbs up for www.gemini.com here on this.
The commission is not charged when you transfer the money into the exchange but when you actually BUY the bitcoin or Ethereum (Another cryptocurrency offered in the exchange).
They have successfully and rapidly answered my questions, considering all the new customers they add every day being Bitcoin "the new thing" I am sure their customer support gets a lot of inquires every day, they usually dont take longer than 48 hours to respond.
I normally do not miss buying opportunities (meaning a low price on bitcoin or ethereum) because as soon as I do a deposit into the exchange the credit the same amount so practically the money becomes available right away, the downside on that is that the put a partial or complete hold on what you already own depending on how much you own Vs. what you just deposited. So for example, lets say you own already $200 worth of Bitcoin and you just made a deposit into the exchange of $500, they will credit the $500 right away so you can buy, but you will not be able to withdraw the $200 that you previously had, you may sell it into USD but you cannot withdraw until the $500 deposit clarifies. Another example is, you own $200 but you deposit into the exchange only $20 you can probably still withdraw about $160 according to my experiences.
The good thing is that even with the hold they still let you sell your Bitcoin if the price is going down while you have the hold you can sell it and not loose money.
THE HOLD IS ONLY FOR WITHDRAWING.
And for the last, they have a good security system, two authentication method, the system sends a code to your phone that you have to enter in the computer in order to access, holdings in US dollars are insured I believe by the FDIC.
I hope this has helped into having a better understanding of how Bitcoin exchanges work, please read very well all the contracts they offer you, read about them online and try to secure your wallet the most.
If you have any questions please ask me!
@Cryptozolano