Bitcoin and other forms of cryptocurrency are traded in a very similar manner to other types of currency. In fact, they are most often traded in exchange for traditional currency. Just like Forex, there are professional arenas for trading and exchanges better suited to amateurs.  When someone wants to enter the Forex market they must choose a brokerage, open an account with that firm and get to know the specific platform.  If you are planning on trading bitcoin or cryptocurrency professionally you will have to choose a platform, verify your identity and open an account as well.  There are other forums that are better suited to one person doing a couple of isolated trades.

There are a few options of types of exchanges, and which type best suits your needs is the first decision to make when choosing the exchange to use.  There are platforms that match buyers to sellers and charge a commission on those sales.  Another option is a forum that is direct trading between buyers and sellers.  In this type of exchange, the buyers and sellers agree on a price, it is not a set market price.  The third option is to use a broker.  Similar to Forex brokerages, the brokerage sets the prices and provides both the buyer and the seller, as anyone can visit the website and participate in these transactions.

Coinbase is one of the most popular exchanges for trading bitcoins.  They are a well-known brokerage and trading platform for cryptocurrency.  This San Francisco based digital currency exchange is used by millions of traders all over the world.  This firm trades Bitcoin, Bitcoin cash, Ether and Litecoin.  Global Digital Asset Exchange (GDAX) is this company’s main product.  What currencies you can trade with them is dependant on which country you are in.  Their digital wallet is available on android and Iphones.  Currency that is stored through the brokerage is insured by coinbase insurance.  It seems that they only really cater to professionals and which services are available vary based on your location.

One of the other most popular Bitcoin exchanges is Kraken.  Kraken is the largest cryptocurrency exchange in Euro transactions.  Through Kraken, you can trade several types of cryptocurrency with a few different types of traditional currencies as well.  Be aware that this exchange is not designed for beginners and is not so simple to use.  It does seem to be a great choice for more experienced traders.  Kraken is similar to a bank or a traditional Forex brokerage in that you must make an initial deposit and you can withdraw your funds when you see fit.

Another very popular exchange is Slovenian based, Bitstamp.  They boast a tremendous volume of trades and a very professionally run operation. They mostly operate with bitcoin/USD trades.  In order to trade with Bitstamp, you need to open an account usually through electronic transfer of fund which will need to be converted to USD and then can be used to buy cryptocurrency.  Bitstamp charges a small fee for each successful trade.

This is just a small peek into the world of Bitcoin exchange, there are many more options to explore before choosing a platform.