Cryptocurrency exchanges are websites where you can buy, sell and trade cryptocurrency for any other digital currency or traditional currency such as US dollars and Euro. You may need to use an exchange to verify your ID or open an account if you want to trade professionally and have access to sophisticated trading tools.
What are Cryptocurrency Exchanges?
Trading Platforms connect buyers and sellers with each transaction and charge a fee while direct trade sites offer direct trade to users where people from different countries can trade currency. There is no fixed market price for direct trading markets, instead each seller sets their own exchange rate. Trading websites can be used by anyone to purchase cryptocurrencies at the broker’s rate. Cryptocurrency traders are similar to foreign exchange dealers.
If people trade, they have to use an exchange in cryptocurrencies. This is a way to match buyers and sellers. For example, when you keep Bitcoin and want to sell it for Ethereum, you can find an Ethereum seller to transact with an exchange.Exchanges will charge you a fee that normally costs about 0.1 percent for each transaction.
There are a multitude of exchanges for cryptocurrencies that sell a number of currencies, including bitcoin, litecoin, ethereum and many, many more. While not all exchanges allow you to buy, using U.S. dollar coins, exchanges exist that allow you to use your own cash to buy coins or swap specific currencies, such as buying bitcoin with litecoin, etc.
Looking for the Top Cryptocurrency Exchange
There are several things that can help you get a better understanding of any crypto coin. The only lighthouses are ratings in the whirling ocean of crypt. They can tell you a lot about a coin, but they can find your path. Rankings can be found at CoinMarketCap based on different criteria. That’s how the market cap will feel.
Generally, it is recommended to look at both the cost and the size of trade independently and together. A coin’s low price is not necessarily a positive indicator to be judged on. It may have been triggered by different scenarios. It may be justified by a comparatively low community trust and obsolete interaction or project management.
A successful exchange of cryptocurrency is important to begin (or continue) your investment journey in cryptocurrency. So, what are some of the best platforms for cryptocurrencies, and what makes them stand out?
ChangeNOW, Coinbase, and Mt. Gox
ChangeNOW is an online cryptocurrency exchange site free of charge for limitless crypto conversions. For more than a year now, ChangeNOW has been on the market and has earned a reputation for reliable service and high rates.
Coinbase is one of the world’s most popular and well-known exchanges and trading platforms, backed by loyal investors and used by millions of customers worldwide. The Coinbase platform allows digital currency to be easily bought, used, stored and traded.
The first thing to keep in mind while looking for a digital currency exchange, and indeed if contemplating every type of cryptocurrency investing, is that scams and frauds are out there and can have a very real impact on individual investors. Mt. Gox, one of the early and most successful digital currency exchanges, crashed. Others were compromise.
The more complicated it is at a particular exchange to create an account, the better. If the creation of an account is too simple, it implies that an exchange is not particularly reliable. So what happens if your digital assets vanish suddenly? You can find it much harder to track down and get your money back in those situations.
You’ve searched through a pool of potential exchanges and found many that seem to have an excellent reputation, a solid record of security, and no experience with hacks or scams. That’s a great start, but now you’re going to have to understand how every exchange is going to impact your everyday investment.
Kraken, Cex, and Bitstamp
Founded in 2011, Kraken has large euro volume and liquidity as one of the largest Bitcoin exchanges. It is a partner in the first cryptocurrency bank. Kraken allows you to buy and sell bitcoins, as well as trade between bitcoins and euros, US dollars, Canadian dollars, British pounds and Japanese yen.
Cex.io offers a broad range of services for the use of bitcoin and other cryptocurrencies. The platform allows users to exchange fiat money quickly for fiat money with cryptocurrencies and fiat money in the opposite direction. The platform offers personalized and user-friendly trading dashboards and margin investing for those looking to trade bitcoins professionally.
Bitstamp is a Bitcoin exchange located in the European Union established in 2011. The site is one of the first-generation exchanges for bitcoin that has built up a dedicated client base. Bitstamp is recognized and respected as a secure forum throughout the Bitcoin community. This provides advanced security services such as two-step encryption, multi-size wallet technology and full cold storage protection.
Edel is an Editor with a decade of print and digital media experience – specializing in Science, Technology, Finance, Entertainment, and Advertising. He is also a stock and cryptocurrency investor. When Edel is not editing or analyzing charts, you can find him with his DIY lightbox taking timelapses of plants.