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Bitcoin – Trading Crypto Currency
Bitcoin is the world’s first crypto currency, a characteristic that makes it uniquely interesting for all types of trading. Our guide explains how to trade the asset itself, which brokers allow trading with bitcoin and the best strategy for this volatile market.
Bitcoin might revolutionise the world – or it might fail within a few years. Decide for yourself, and take a position.
In this article, you will learn:
- What Is Bitcoin?
- Why Is Bitcoin Special?
- The Disadvantages Of Cryptocurrencies
- The Advantages Of Bitcoin
- What Does Bitcoin Offer Traders?
With this information, you will be able to understand whether Bitcoin, or Bitcoin cash, is the right investment for you.
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What Is Bitcoin?
Bitcoin is a crypto currency, which is a unique new type of currency that does almost everything differently than conventional currencies, for example by neglecting a central managing authority.
Conventional currencies such as the Dollar are issued by a central power such as a government. Even newly invented currencies such as the Disney Dollar are backed by one authority that instills faith in the currencies and its purchasing power.
Cryptocurrencies go a different route. There is no authority behind the currency, even its inventor Satoshi Nakamoto remains shattered in obscurity and might just be a synonym for a group of people.
Bitcoins are completely digital. They exist in a long chain of information packages on computers all around the world that is constantly checked and updated (blockchain). By providing the calculating power for these operations, users can earn more coins, which is how the currency is distributed. This process is called mining.
The technical side of Bitcoin is incredibly complicated and could fill its own book, but we will keep it at that. Bitcoin is an electronic currency that is distributed through and managed by computers around the world and not backed by a central authority – that’s all you need to know.
Since 2020, more than 100,000 merchants worldwide accept Bitcoin. Among them are such major players as Microsoft, Dell, and Paypal. Bitcoins is not the accepted currency of a country or an area, but it is a niche product that has found significant influence around the world. Bitcoin has become a currency that can do the same things as conventional currencies but still is fundamentally different.
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Why Is Bitcoin Special?
Bitcoin and crypto currencies are the third waves of currency types, decentralising currencies, which has a significant effect on how the currency works.
Until the 1970s, most currencies used the gold standard and defined a fixed exchange rate between the currency and gold. After money was no longer backed by gold, it was backed by the belief in a government’s or an authority’s ability to pay its bills. When we exchange Dollars into Euros or Disney Dollars, we do so believing that the authority behind the currency guarantees its value and purchasing power.
With cryptocurrencies such as Bitcoin, this system no longer exists. The system is backed by the faith in the system itself and by the faith in other people who believe in the same system. Bitcoin decentralises money, which has advantages and disadvantages, depending on what you expect from a currency. There is no central bank and no government behind the currency; it is based on the faith of the people.
Additionally, this currency is free from fundamental influences. Its exchange rate is solely determined by supply and demand.
Conventional currencies experience strong fundamental influences. For example, when a government prints a lot of money, the supply of the currency will increase and the price will drop. When a government increases the base rate, credits become more expensive and savings more attractive, which leads to lower supply and an increase the currency’s price. Such fundamental influences are strong and can change unexpectedly, which adds a strong sense of uncertainty for traders.
Since Bitcoin lacks a central authority that manages the currency, there are no such fundamental influences. The rate at which new coins are issued is predetermined and self-adjusting. If more people mine new coins, the number of new Bitcoins per operation decreases to keep the overall amount of issued money constant.
The only factor influencing the price of a cryptocurrency is supply and demand. This is a unique property no other currency can match.
Live Price Chart
The Disadvantages Of Cryptocurrencies
Because Bitcoins lack a central authority that backs the currency, it is difficult to trust for many investors. Historically, the worth of a currency depended on the trustworthiness of the authority that backed it. Without such an authority, many traders find it difficult to trust Bitcoin.
Critics argue that every currency needs an authority managing it and guiding it through difficult times. Bitcoin is an anarchic concept that puts more faith in swarm intelligence than in single managing authorities. Many people argue that this approach leads to a lack of stability that endangers the currency.
Additionally, the usefulness of Bitcoin is limited by the impossibility of surviving on this single currency alone. As a crypto currency, Bitcoin has no predetermined area where everyone accepts the currency. Regardless of where you live, it is almost impossible to unrestrictedly go about your daily life and pay with Bitcoin wherever you go. Since no country is likely to adopt it as its main currency, this limitation is unlikely to change in the near future. Consequently, Bitcoin will likely forever be a niche product that a few internet geeks use.
There is no reason why it should remain the main currency for this purpose. There have been crypto currencies before, and there will likely be crypto currencies that one day edge Bitcoin out of the market.
Based on the time lines on which these things played out in the past, this process is more likely to happen over the next decade than the next century. This impending end of the currency, including the loss of purchasing power that comes with it, strongly questions whether these digital wallets are a reliable form of payment.
The Advantages Of Bitcoin
In many ways, the disadvantages of Bitcoin are also its advantages. Many people consider the lack of a central authority one of the biggest advantages. They argue that authorities can misuse a currency for their own purposes, often injecting a sense of uncertainty and unpredictability. To these people, swarm intelligence provides a more reliable, more stable basis for a currency.
Additionally, the fact that Bitcoin is not the currency of a single country can be seen as an advantage. In a globalised world, a currency that is accepted by shops and people all over the world is a significant plus.
Blockchain The Future?
Bitcoin is one of the few currencies that has the potential of becoming the currency of the future. Some people expect that the world will eventually use a single currency, but the U.S. will never adopt the Chinese Renminbi, and China will never adopt the U.S. Dollar, but it might be possible for a new currency to edge out both currencies and replace them in a decentralised way.
In this sense, the concept is an experiment. Whether it makes sense to invest in this experiment depends on whether you believe that it can succeed.
What Does Bitcoin Offer Traders?
For financial investors, Bitcoin is an interesting currency because it is completely free from fundamental influences. There is probably no other asset whose price is less determined by fundamental influences. Even stocks experience influences such as earning reports and the overall economic situation, but cryptocurrency is completely free from any of these influences.
If you want to trade in an environment that is solely influenced by supply and demand, these new currencies are ideal for you. For technical analysts, Bitcoin provides a great environment in which their tools should work more effectively than in any other environment. Currently, nobody has tested this connection in a scientific study, but all signs indicate that it should be there.
The sole dependence on supply and demand opens the door for a higher volatility. With other currencies, fundamental influences often keep pushing the currency in one direction for long periods, and swings are marginal. That can be a great way of trading because it allows for long-term predictions. But if you want to make a lot of money in a short period of time, you need volatility. This volatility is more likely with Bitcoin than with other types of assets.
Once again, the ongoing expansion of Bitcoin makes it difficult to assess this connection in detail, but an expanding market with a strong influence of supply and demand should, in any case, lead to higher volatility.
This is why traders who want to invest for the short run often prefer Bitcoin. They hope that they can make more money in a shorter period of time than with other currencies.
Bitcoin is a currency experiment that faces many challenges but might just revolutionise the world. Because it relies on the support of many people instead of the backing by a single authority, it shows unique characteristics that separate it from all other currencies and other assets, first and foremost a strong influence of supply and demand.
Whether you want to invest in these new currencies is partly a matter of belief. If you like anarchic projects that transform classic responsibilities of governments into private projects, this will probably sound like a great idea to you. If you think that a government provides much-needed stability to a currency, these assets might not be right for you.
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Bitcoin is one of the most important inventions in all of human history. For the first time ever, anyone can send or receive any amount of money with anyone else, anywhere on the planet, conveniently and without restriction. It’s the dawn of a better, more free world.
— Roger Ver, CEO Bitcoin.com
Over Labor Day weekend (Sept 2020), needing a break from my startup Harvey, I had the choice of binge watching Narcos 3 on Netflix or taking a deep dive into cryptocurrencies. Since learning about the impressive $100M fundraise by Coinbase at a $1.6B valuation, I was been eager to understand their product suite a little better and discover where there might be a new income opportunities, so I jumped in and went deep.
Disclaimer: I am not an expert in cryptocurrency day trading, nor do I pretend to be one. I am not offering financial advice. Please understand your own risk tolerance and be responsible with your hard-earned money.
I started by wanting to know, in particular, if bitcoin was going to be the punchline of jokes like beanie babies in the 90s, and featured in Economics 101 classes as part of bubble theory. My quick conclusion: I don’t believe the bitcoin hype is over-exaggerated.
While there will be significant volatility in the price and valuation of bitcoin over the coming years, I strongly believe it and the entire asset class of cryptocurrencies will become a core part of the financial system within 3 years or less. There is enormous risk in trading these assets—more so than gold, REITS and other commodities—but the global market capitalization of cryptocurrencies ($148 billion today) I expect to pass $1 trillion by 2020.
Many of today’s coins will die off, and the ones that survive will be colossal in significance, similar to the way Amazon emerged from the shadows of the dotcom bust in 2001. If you don’t believe this core thesis, this article might not be for you, but I’d love to hear from you.
What I’m going to explain is a 10-step guide on how to research, buy and trade some of the major cryptocurrencies and enjoy some of their growth.
1. Learn how blockchain works
Goldman Sachs says blockchain technology “has the potential to redefine transactions” and will “change everything”. But anyone who claims to fully understand how blockchain works, and is not named Satoshi Nakamoto, is probably lying to you. And anyone who claims to be Nakamoto himself, is probably also lying to you. Fortunately, just like the internet, you don’t need to know how blockchain works to use it.
But here are the basics… a blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. By design, blockchains are inherently resistant to modification of the data, and serve as a public ledger of transactions between two parties. To date, the best analogy I’ve heard for blockchain compares it to a Google Doc:
“The traditional way of sharing documents with collaboration is to send a Microsoft Word document to another recipient, and ask them to save the document, make revisions to it, and send it back. The problem with this scenario was that you needed to wait to receive a return copy before you could see or make changes to the document. You are locked out of editing it until the other person is done with it. That’s how banks work today—they maintain money balances and transfer money by briefly locking access to the account (or decreasing the balance) while they make the transfer, then they update the other side, then re-open access (or update the balance).
With a Google Doc, all parties have access to the same document at the same time, and the most up-to-date version of that document is always visible and editable to all parties. This real-time shared Google Doc is just like a distributed blockchain ledger. The “real version” of the transaction is verified by analyzing all the available blocks on multiple computers and taking “the average”.
The decentralized and transparent nature is what makes blockchain highly secure and almost impossible to hack, because a hack to one ledger would cause a discrepancy in the entire network that will be ignored. Functionally, to hack the ledger one would have to hack all the computers on a network at the exact same time in order to change the “average”. For a currency like bitcoin, this would mean millions of computers. So the larger the network, the more stable the currency.
“Blockchain solves the problem of manipulation. In the West, people trust Google, Facebook, and their banks. But around the rest of the world, people don’t trust their corporations as much. Blockchain opportunities are the highest in the countries that haven’t reached that level [of trust] yet.”
—Vitalik Buterin, founder of Ethereum
2. Learn the top currencies
Bitcoin is here to stay. But the world of virtual currencies is getting crowded with many other “altcoins”. There are over 100 types of cryptocurrency that sell for more than $1 USD, according to CoinMarketCap. Even more are in penny-stock range, but I don’t recommend trading them right now.
What’s important to note is that bitcoin accounts for about 50% of the entire cryptocurrency market, and has the highest volume. It is undoubtedly the most important currency today. You’ll also notice a difference between the original version of bitcoin, Bitcoin Classic (BTC), and a newer version of bitcoin, Bitcoin Cash (BCH). Bitcoin Cash is a spinoff off of the original bitcoin blockchain. I’m not going to get into the technical differences between Bitcoin Classic and Bitcoin Cash, but understand they are separate currencies. So far, Bitcoin Classic seems to be favored by the public over Bitcoin Cash, and has an 8X higher market cap. But when people say “bitcoin” (lowercase) they could be referring to to either currency.
The other two currencies I would pay attention to are Ethereum (
40% the size of Bitcoin, also known as “Ether”), and the smaller and more volatile Ripple and Litecoin. Despite a smaller market cap, Litecoin enjoys higher trading volume than Bitcoin Cash and Ripple, likely because it’s one of the three currencies accepted by the #1 digital currency wallet, Coinbase.
3. Understand all inherent risks
Bitcoin is more volatile than practically any other type of asset, including gold or the stock market. Cryptocurrency is still a young technology, and faces many challenges. While I believe the overall trend for bitcoin is upwards, trading this currency comes with considerable risk. Bitcoin prices are highly impacted by public sentiment about the currency. It will continue to fluctuate as companies and financial institutions make decisions of how to incorporate (or not incorporate) it into their businesses and workflow. It’s also highly sensitive to regulatory changes, as I will get to in a minute.
To give an example, in early June 2020, Bitcoin was trading at $2,983, before losing 30% of its value a month later in July—crashing to $1,992. Then it climbed up to $4,764 in September, posting an impressive 139% gain.
Then as I sit here and write this on September 3rd, 2020, the Chinese government announced a few hours ago that they are banning all organizations and individuals from raising funds through Initial Coin Offering (ICO). They barred all banks and financial institutions from doing business related to ICO trading. This is significant news, although not a surprise to many people, as representatives from the People’s Bank of China and China Securities Regulatory Commission had previously criticized ICOs as an unauthorized fundraising tool that may open the door to financial scams. ( I will explain ICOs in the last section).
The news of the ICO ban in China had bitcoin trading down 12%, Ethereum down 23% and Litecoin down as much as 32%, as shown below. So don’t go throwing your entire savings account into Litecoin just yet, and being bullish long-term doesn’t mean it will get there smoothly.
There is also risk inherent to the exchange itself. Just like the cash in your wallet, the safety of your bitcoins or other currencies depend on your own diligence. While your bitcoins cannot disappear, the transactions are permanent and can only be refunded by the recipient. This means you should only do business with people and organizations you know and trust, or who have an established reputation.
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Remember, bitcoin transactions are stored publicly and permanently on a network, which means that anyone can see the balance and transactions of any bitcoin address. However, only the bitcoin exchanges and/or the parties involved in the transaction can attach the addresses to a real person. So for the most part, the transactions are anonymous.
Other trustworthy exchanges I considered before deciding on Coinbase were (in no particular order): Bitsquare, Bitstamp, ShapeShift, Kraken, Poloniex, CoinMamma and Gemini.
For a full list of exchanges by country, click here.
4. Read bitcoin news every day
Here are some great websites to bookmark for bitcoin news and discussion boards. The combined content here could keep you busy for at least a year.
If you’re on Twitter, I also created a list of bitcoin influencers that you can subscribe to and read their content. I find this to be the most efficient way of consuming information quickly before making trades.
Bitcoin Influencers on Twitter
news and entertainment on bitcoin, altcoins, cryptocurrencies and all the live commentary. We got you covered!
5. Open a brokerage account
Coinbase is one of the most trusted and well-known exchanges for buying and selling Bitcoin, Ethereum and Litecoin. They are essentially a digital wallet for your cryptocurrencies, and their iPhone and Android app make sending currency and tracking prices super simple.
What I like about Coinbase is they meet all the regulatory requirements in the countries they operate, and they have two distinctly separate but integrated products: Coinbase for buying and selling bitcoin or sending them to friends, and Global Digital Asset Exchange (GDAX) for more advanced and precise trading.
Previously, the GDAX was called the Bitcoin Exchange, but mid-2020 they decided to rebrand. From a product standpoint, you can tell they built GDAX with their own engineers, as the user experience is similar to Coinbase.
You can signup for Coinbase using my referral code, and you’ll get $10 in free bitcoin to play around with.
I would start by making a Coinbase account, then graduate over to GDAX once you feel comfortable. You can instantaneously transfer currencies between the two exchanges for free, which is really nice.
6. Fund your account
Once you create an account on Coinbase (or another exchange), you will need to verify your identity by uploading a picture of your drivers license or passport. This only takes a few minutes, then you can fund the account.
To add a new payment method, go to “Settings” and “Payment Methods” on the dashboard. You can choose a bank account or a credit/debit card. The bank account has higher limits, but takes longer for the funds to settle. The credit/debit card has lower limits, but the transactions happen instantly. If you go bank account route, you will need to verify two deposit amounts on your account. I personally did both—I funded the account with a few grand from my checking account, and thanks to my impatience I also put few grand on my credit card just so I could get started right away.
Keep in mind, Coinbase charges a 3.99% processing fee for all credit card transactions. I’d recommend using a credit card that gives you at least 3% cash back so you can offset some of the fees (I’ll cover the fee structure in more detail in the next section). You can use PayPay for selling currency, buy not buying currency; for PayPal the funds are available instantly but have lower payout limits. The bank account is usually your best bet.
7. Buy and sell some bitcoin!
Once your account is funded, you can go ahead and make your first purchase. Remember, you do not have to purchase coins in full units. You can buy coins in fractions as low as one hundredth of a millionth, or about less than one-tenth of a cent at current prices. That makes bitcoin and other cryptocurrencies easy targets for speculation.
Coinbase does not charge to transfer bitcoin from one user to the other, which is the point of blockchain. But if you want to transfer money to or from an outside exchange, such as a US bank account, Coinbase charges a small conversion fee. The charge is 1.49% with a $0.15 minimum if you are using a bank account and 3.99% if you are using a credit/debit card. I’d try to avoid funding with a credit card unless you get ample reward points to offset the higher fees.
For a full breakdown of their fees, click here.
Luno or Paxful? A beginner’s guide to Bitcoin trading in South Africa
One of the defining technological advances in the financial industry over the past decade has to be the introduction of cryptocurrencies.
Aerial view of Cape Town from Signal Hill after sunset during the blue hour – South Africa modern city with spectacular nightscape panorama
When the first cryptocurrency, Bitcoin, was launched in 2008, it was thought of as a novelty. Ten years later, the total value of all Bitcoin hit the $1.2 Trillion mark in January 2020.
The cryptocurrency craze has not been limited to Europe, North America and other ‘developed’ countries; Africa has also been hit by the Bitcoin bug. To buy, sell or trade in Bitcoin, a person needs the services of a cryptocurrency exchange platform. Two of the more popular ones within the South African market (and globally) are Luno and Paxful.
This guide will provide an overview of the South African cryptocurrency market and an objective comparative analysis of the two leading cryptocurrency exchange platforms.
The South African Bitcoin Market
With Bitcoin gaining acceptance as a mainstream option in global commerce, numerous startups have mushroomed all over Africa to facilitate the trading of Bitcoin (and other cryptocurrencies) as well to leverage the underlying blockchain technology. As the second largest economy in Africa, and arguably the most tech-savvy country in the continent, South Africa has been at the forefront of Africa’s burgeoning Bitcoin market (read this extensive SA market guide about bitcoin to ZAR).
The decentralized Bitcoin model has been popular in Africa, and other developing nations, since it addresses deficiencies in the existing economic structures. The peer to peer cryptocurrency model allows people to deal with each other directly, without any ‘middleman’ in the form of banks or government regulation.
The Bitcoin price surge in 2020 also made it an attractive investment option which attracted thousands of South Africans. Bitcoin’s popularity in South Africa has also been influenced by the hassle-free option it offers South Africans abroad who want to remit funds back home to their families.
It was therefore not surprising that South Africa was the location for the continent’s first cryptocurrency ATM. Hundreds of local vendors accept Bitcoin as a payment option and numerous individuals are either mining or trading in cryptocurrencies.
Luno: A brief overview
Luno is an international cryptocurrency exchange platform that was founded in 2020. Its first headquarters were located in Singapore before being relocated to London. The company runs its operational hub from Cape Town, with main hubs located in London, Singapore and Johannesburg. The company’s international credentials are outlined by the more than 2 million clients they serve in 40 countries.
What makes Luno stand out of the (increasingly crowded) crypto marketplace is its focus towards developing and middle-income countries. Nigeria, South Africa, Malaysia and Indonesia are some of the markets that Luno operates in, in addition to 36 European countries. The service does not cover Australia, North America or South America.
The fiat (traditional) currencies that clients can use to purchase Bitcoin on the Luno platform are the Euro, the South African Rand, the Malaysian Ringgit, the Indonesian Rupiah and the Nigerian Naira. The cryptocurrencies on offer are Bitcoin and Ethereum.
Luno offers three main services:
• The Luno Trading Platform: Here, registered users can trade cryptocurrency with each other, with the company charging a commission on all sales.
• The Luno Brokerage service: Users can engage with the instant buy or sell feature. This feature allows you to instantly buy cryptocurrency at a quoted exchange rate which includes a fee. The fee percentage varies depending on market conditions.
• The cryptocurrency e-wallet: Luno provides a crypto wallet that its users can use to trade in cryptocurrency or to send and receive cryptocurrency payments. The Luno e-wallet can be accessed on Android and iOS mobile devices and via the website.
Luno accepts payments through a handful of payment methods such as credit/debit cards, bank transfer and local payment methods in the countries it serves. There are three tiers of verification: phone, ID and proof of residence with limits placed depending on your location.
Paxful: A brief overview
Paxful is an American based international Bitcoin exchange platform. It gained notoriety when it began processing payments for sex workers on the (now defunct) backpage website. It has a global coverage that only excludes the state of New York and only trades in Bitcoin.
There are two main services offered by Paxful, the trading platform for users to trade Bitcoin with each other and the Paxful Bitcoin wallet that stores Bitcoin and allows users to trade, make and receive Bitcoin payments.
One of the factors that make Paxful unique is the number of payment methods that it supports. Not only does it support mainstream payment options such as PayPal, Skrill, and debit/credit cards; it also accepts payments via western union and even gift cards from major retailers such as Amazon. In fact, Paxful accepts more than 300 payment methods from all over the world!
There is, however, a premium that is charged on more unorthodox payment methods and more obscure fiat currencies. When using gift cards or currencies from smaller nations, the sellers might charge a higher commission to facilitate the transaction.
Paxful also runs an escrow service to protect its users. When two users agree on a trade, Paxful will hold onto the buyer’s money until s/he confirms that they have received the agreed upon Bitcoin value. To facilitate this system, Paxful charges a standard fee of 0.0008 Bitcoin for every transaction as well as a 1% commission on the value of the trade.
An important caveat when dealing with users on the Paxful trading platform is that you need to be careful of scammers. Thanks to the less stringent verification process for Paxful users (since the company believes in upholding the privacy of users); scammers try to ‘lure’ buyers to circumvent the escrow protection system.
Luno vs. Paxful: A comparative analysis
While sharing some similarities, there are significant differences between Luno and Paxful that may appeal (or distance) certain users.
• Services offered
Both Luno and Paxful offer a trading platform and an e-wallet option. The main difference comes from the brokerage service that Luno offers. Paxful does not have a similar service; all trades are between users, not between a user and the company. This can be challenging for clients who want to make an instant cryptocurrency purchase or sale, and don’t want to be involved in the lengthy process of negotiating on the trading platform.
In terms of coverage, Paxful is the outright winner. While Luno’s coverage only includes 40 countries within Europe, Asia and Africa; Paxful has a truly global coverage with the state of New York being the only exception. While South Africans are covered by both services, Luno locks them out of trade opportunities offered by users from other regions. If you are a South African that travels often outside the Luno coverage areas, then your cryptocurrency trading will be affected.
• Cryptocurrencies offered
Luno wins in this category since it offers two cryptocurrencies: Bitcoin and Ethereum. Paxful only deals with Bitcoin. Since Bitcoin is (by far) the most popular cryptocurrency, this should not be a problem for most users. However, seasoned cryptocurrency enthusiasts who want to dabble in more than one cryptocurrency will find it hard to work with Paxful.
• Supported Currencies and Payment methods
This is another domain where Paxful has a significant advantage. Apart from the Euro, Luno only accepts currency from Nigeria, Indonesia, South Africa and Malaysia. It also supports only a handful of payment methods, primarily bank transfer and debit/credit cards. Paxful, on the other hand, supports ALL global currencies, as long as you find a user that is willing to accept it during a trade. With more than 300 supported payment methods, that include big store gift cards, it is easier to find a payment method NOT supported by Paxful.
• Transaction Limits
Depending on your location, Luno offers limits based on your verification level. As you get a higher verification status (phone – ID – proof of residence) your limits are increased. On Paxful, the only limits are those placed by the payment service that you use. If you intend to trade large volumes on a regular basis, the limits imposed by Luno can be restrictive.
The fees charged by Luno are complicated. They all depend on your location and the type of payment methods selected. In South Africa, deposits made via EFT are free, and withdrawals cost just R8,50 regardless of the amount. Trade fees range from 0,50% to 1,00% for market takers and are free for makers. The consensus seems to be that they are slightly higher than those offered by competitors. Paxful, on the other hand, has a standard 0.008BTC fee on all transaction in addition to a 1% commission of the trade value. This is much simpler, and probably cheaper than Luno’s fees.
From the information provided, it is clear that Luno is the better service for people who are getting into cryptocurrency trading, while Paxful is ideal for those with a bit more experience.
The Luno brokerage service is perfect for anyone that does not want to engage in the ‘open market’ scenario offered by the exchange platform. You can simply buy or offload your Bitcoin (or Ethereum) based on the prices offered.
The global coverage and multiple payment options (and supported currencies) offered by Paxful appeal to seasoned Bitcoin traders. You can make trades with people from all over the world which makes the Paxful exchange more competitive. With no trading limits, you can also trade higher volumes on a daily basis.
With both Paxful and Luno serving the South African market, you can use either (or both) depending on your specific needs.
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