Are you new to the Bitcoin world or not sure what a Bitcoin trader is? Maybe you are not new to the world of Bitcoin, but just don’t know much about how a trader can help you. This article will discuss what a trader does and how having a trader can benefit you as a Bitcoin owner.
A trader is an entity that plays the role of a bank in the Bitcoin world. A trader will invest in a large amount of Bitcoin, and then sell it to people who want to buy-in to Bitcoin, but at a much smaller amount than an investor would purchase. Traders also allow Bitcoin currency to be exchanged for other currencies.
Bitcoin traders make their money by buying and selling Bitcoin. Just as any other entity in the financial world makes money from fees, the world of Bitcoin is no different. This means that a trade fee is normal, and a person buying or selling their Bitcoin, should expect to see a fee.
Traders will allow you to purchase Bitcoin, as well as sell Bitcoin. That is not all though. Traders also keep up with Bitcoin news and changes, just as your bank does for the dollar. The trader acts in the same way as a bank by allowing you to send and receive Bitcoin, complete transactions in-store, and also cash out your Bitcoin to a different currency, such as the American dollar. Having a trader is the normal route to go when dealing with Bitcoin.
Bitcoin is not insured by the FDIC like the dollar, but there are more and more people demanding insurance for their Bitcoin. A few insurance policies are now currently available, but insurance policies for Bitcoin traders are a fairly recent development. Because of this, insurance is available and used by some. Since this is a new feature that is still being created and implemented, most traders do not yet have insurance policies and it is not required by law as of this time.