First thing to consider when looking for the top Bitcoin exchange is how safe is the website and server and is it a trustworthy exchange providing transparent data of coins in cold storage and are customers happy? It’s also good to lookout for which currency pairs are available: are you looking to trade Bitcoin for USD, Euros, or other fiat currencies. The location usually gives an idea of what’s on offer. However, the largest Bitcoin sites usually have many options for buying Bitcoin with government issued currencies. Bitcoin currency exchanges work in a manner similar to banks. You first deposit an amount of money in the currencies supported by the exchange, to your account in the exchange, then you use these balances to trade with other users of the exchange and then you are able to withdraw that money. Unlike over-the-counter transactions, there is no risk of losing money due to people not fulfilling their part of the deal, as long as the exchange itself does not commit fraud or withhold money. Exchanging is done by placing “buy” or “sell” orders, which the exchange system software then matches with each other. “Buy” orders (or “bids”) are offers to buy Bitcoins in exchange for another currency at a maximum price-per-Bitcoin which is set by the seller. “Sell” orders (or “asks”) are offers to sell Bitcoins at a minimum price-per-Bitcoin. If the bid price of a buy order is higher than the ask price of a sell order, an exchange can be performed and the bid order, the sell order or both can be removed from the “order book”. Thus, at any given time, there is a price above which there are no more buy orders and a slightly higher price below which there are no more sell orders.
Communication with the Bitcoin currency exchanges is commonly done using a standard web browser, over a secure SSL connection..