Assume you possess a few Bitcoins and are keen on exchanging them for Euros. Let’s play along with this scenario; we’ll assume that the value of one Bitcoin has increased by 10% since last month!
If you had chosen to Exchange BTC to EUR at an earlier date, then it may have been more advantageous as its market value was less than what it is today. If however, you waited until now before making such a transaction, then perhaps another person may have appeared willing to accept Bitcoins in exchange for Euros thereby providing an even greater gain!
While it can be difficult to ascertain which cryptocurrency exchanges offer favorable conditions for Bitcoin investors, there exists an easy way to maximize profits with known platforms – the use of coin-to-coin (or altcoin) exchanges!
What is an Exchange?
Exchange houses are a succinct way of exchanging your cryptocurrency (such as BTC) for traditional currency such as dollars or euros, without having to use a third-party broker.
With an exchange house, traders can access an array of markets and product offerings, including exchange services. For example:
You can purchase Bitcoin with USD or any other currency supported by that exchange house. Then you can utilize it to trade into another currency of choice – all within the same platform!
How to Use Exchanges to Your Advantage
There are numerous online exchanges available, providing users with an array of choices when it comes to exchanging different cryptocurrencies. By utilizing this platform, you can gain access to a variety of currencies while also facilitating transactions between yourself and other users – all without having to leave your computer!
However, if you find yourself in need of converting your bitcoins into cash or fiat currency, exchange platforms don’t offer any convenient solutions; all transactions must be completed offsite. This presents an obstacle for traders who want to take advantage of these services’ services during periods of fluctuation in their holdings. If one intends on using exchanges for any such purposes, then it’s crucial to familiarize oneself with the various options provided
Which Coins Have the Largest Volume on the Market?
Like any other market, the most popular coins are those with the highest trading volume. If a coin has been in operation for an extended period and has amassed a sizable community of loyalists, this could potentially be the ideal occasion to initiate an exchange!
With over 300 coins available on CoinMarketCap, it can be tricky to select which ones will offer you the optimal exchange rate let us help you make an informed decision.
How Many Euros Will I Get for My Bitcoin?
To illustrate our exchange rate, let’s take a hypothetical case of obtaining a Bitcoin with a value of $3,000 at its peak in late 2013 and ending up with 1.7 million Euros today – as well as taking into account the more recent fluctuations in currencies’ value during the past few years.
If we were to use a common conversion rate of 1 Euro = 0.84 U.S. Dollar (USD), then we can calculate that 1 BTC will be worth ~$4,107 USD by the end of the year! This figure is based on exchange rates from January 2019; however, it should be noted that these figures are susceptible to fluctuation over time.
When Does the Market Open and Close?
The crypto market opens at 7 in the morning UTC and closes at 2 p.m. on Tuesday when trading resumes.
The European locales currently considered to be open are:
British Pound / Euro; Spanish Peseta; Polish Zloty; Italian Lira; Czech Koruna; Swiss franc and Estonian Kroon.
Which Rules Are in Place?
In contrast to institutional-level exchanges like GDAX, Bitsquare doesn’t require any special verification procedures. Anyone can become an operator; however, they must possess a Turing-complete device such as a desktop computer or laptop.
Nonetheless, even though you don’t have to go through any rigorous measures to trade currency on Bitsquare, there are still rules in place that citizens of Europe must adhere to – namely the EU’s fundamental law. Because its acceptance is mandatory for all exchanges trading within its jurisdiction, its operation must adhere to strict guidelines regarding security and fraud prevention.
Additionally, at this time cryptocurrencies aren’t eligible for tax relief anywhere within the EU; however, governments in Germany have recently granted some bitcoin businesses with an exemption and others have announced plans for their relief schemes.
Conclusion
At first glance, the process may seem fussy, but it is extremely useful for those who specialize in foreign exchange trading and can make a substantial amount of money. If you’re interested in learning more about how to execute successful trades then be sure to browse our blog or inquire within!
