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Crypto Exchanges With The Lowest Fees; How To Maximize Your Profits For Beginners

Which bitcoin exchange in the UK with the lowest fees can maximize your money? Bitcoin has reached its highest value at around $40,000 (US Dollars). With the Bitcoin prices rising, new traders are interested in making a profit off the new found strength of this growing cryptocurrency.

A major problem that new traders are encountering while trading are the high prices you pay for transferring your money. Coinbase and Binance are two commonly used exchanges that are user friendly. Although these platforms are used the most, they have some of the highest wallet transfer fees on the market.

Bitcoin has always been an interest in the UK but has gained more traction as of late. Before we cover the bitcoin exchange in the UK with the lowest fees, were going to cover bitcoin trading in general.

uk bitcoin wallet

How to Trade Bitcoin in The UK

Bitcoin is a digital currency that operates outside a central authority. There are several variations of bitcoin also known as “altcoins”. Bitcoin was created by a person or group of people named Satoshi Nakamoto back in 2009.

The reason why Satoshi created Bitcoin was to create a method of payment that was free of government supervision, transfer delays, and transaction fees. Bitcoin functions by 2 mechanisms called the blockchain and mining process.

The blockchain is a digital ledger where all transactions are recorded. The recent transactions are grouped into “blocks”  by the miners. Next the blocks are cryptographically secured and are linked onto the existing blockchain.

Next we will cover bitcoin exchanges and how they operate.

bitcoin exchange fees

Bitcoin Exchange in the UK With the Lowest Fees

Bitcoin exchanges are places that you can hold and trade your cryptocurrencies. Although bitcoin exchanges are very secure, cyber criminals often target these platforms. If you would like to learn more about bitcoin scams and security click here.

There are two popular methods of trading bitcoin in the UK, the first method is investing your money into bitcoin on a trading exchange. The way you profit from the first method is by selling your bitcoins at a time where the rate is higher than what you paid earlier.

The second method is based on the speculation of prices and movement of bitcoin without actually owning any. This tax free method is known as bitcoin “spread betting”. You’re basically betting on whether if you think the market will rise or fall. If you guess correctly you make a profit, if you guess incorrectly you lose money.

Bitcoin Trading Strategies for Beginners

When learning how to trade bitcoin in the UK, these are the fundamental techniques that will help you gain footing in the crypto trading arena. The first bitcoin trading strategy is known as day trading.

Day trading bitcoin is the process of buying and trading bitcoin within the same day. In order to be successful with using this method, you must have both a long term and short term placements with your bets. Capitalizing on the movement of the market will determine if you are profitable for the day.

The next strategy is known as “scalping bitcoin”. Scalping bitcoin is a strategy that includes trading frequently within extremely short time periods. The goal is to capitalize on every positive movement of the market.

When choosing a strategy, please keep in mind that each one has its perks and flaws. Choosing the right strategy will determine on your comfortability with risk and how much capital you have.

bitcoin price

UK Bitcoin Wallet

Now that you have a general understanding of bitcoin, we are going to discuss the two exchanges with the less fees. Finding a bitcoin exchange in the UK with the lowest fees should be every novice traders priority. Depending on how much capital you have to work with, saving as much money as you can will help you in the long run.

Luno Bitcoin Exchange

Luno is a very underrated bitcoin exchange and doesn’t get the recognition it deserves. What makes Luno a great bitcoin exchange for beginners is because of the very low trading and withdraw fees. Luno has been on the cryptocurrency scene since 2013 and has processed over 17 billion US dollars in transactions.

With Luno you have full access to every cryptocurrency on the market, that includes Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin. Luno also offers very fast withdraw and deposit times. One of the best features of Luno is the free transfers between other Luno users.

Kraken Bitcoin Exchange

Kraken is a great platform for beginners to get acquainted with the cryptocurrency world. Kraken takes pride in having low fees in order to provide the user with a chance to grow their cryptocurrency. Purchasing cryptocurrency has never been easier with Kraken and should be used for first time cryptocurrency buyers.

Kraken charges no fees when starting an account and making any crypto purchase. Their payment rates from card transactions are 3.75% + €0.25. Kraken does offer a pro version of their software which comes with better features than it’s free counterpart.

Either way, these two platforms should be used in order to maximize your profits in the beginning of your cryptocurrency journey.