To exchange cryptocurrencies to the US dollar or any local currencies, it is essential that you use a cryptocurrency exchanges. In short, cryptocurrency exchanges are platforms or website where you can buy, sell and exchange your cryptocurrencies to US dollars or any local currencies.
Before selecting a cryptocurrency exchange, it is essential that you research the transaction fees and its reputation in the industry.
Cryptocurrency trading has become more common today, and it can make someone incredibly wealthy. Regardless of your level of experience with cryptocurrencies, this guide can help you to make your first moves in the cryptocurrency market without having to focus on the Bitcoin market as a primary investment asset.
It is essential that you do research about the crypto currency market because you are entering into a highly volatile market. It’s volatility is proven as the price can rise up to 1000% in the matter of a few weeks.
This guide will help you to find a cryptocurrency that can suit your needs and will also help you understand in detail about which cryptocurrencies are the best to trade in the market. In this article, we will discuss different types of cryptocurrency exchanges and their functionalities.
This cryptocurrency exchange deals with the three main types of crypto currencies. They are Bitcoin, Ethereum and Litecoin. This exchange platform also has wallets that can be used by Android and iPhone users.
They have over 8 million customers making up their user base and is the most popular online exchange for digital currency. Among other things, this platform allows users to make recurring buys to invest in cryptocurrency over time.
Since its existence in 2012, Coinbase is still making waves. The headquarters for this cryptocurrency exchange is based in San Francisco, United States. Although this cryptocurrency only supports three of the main digital currency, it is expected that they will add more currencies sooner or later.
You can also conveniently use your credit card on this platform to buy Bitcoins. The trading fees for this platform is 0.25%.
This exchange platforms enables users to trade different types of cryptocurrencies. Emerging coins are also welcomed on this exchange. Today, it supports over 190 different cryptocurrencies.
To ensure that crypto investors feel safe using this management, compliance audits are done on all new cryptocurrencies that are listed on the exchange. With speedy transactions and low transaction fees, many experienced crypto investors use this cryptocurrency exchange.
The headquarters for this cryptocurrency exchange is in Las Vegas, United States. It can handle a lot of trades. This cryptocurrency exchange deals with different types of alternative coins.
Therefore, users have the opportunity to treat different types of coins. Unlike Coinbase, it is not limited to just three of the main digital currencies.
As of today, the trading fees are 0.25%. Withdrawals are completely free and it is only subject to the transaction fee specified in the blockchain of the cryptocurrency.
This is one of the most popular cryptocurrency exchange for Bitcoins among professional traders. This is because it provides different order types and high reliability, which enables experts to make decisions that surround crypto trading.
With its highly secure environment and different order types, it is no wonder why professional traders prefer the use of Kraken.
Kraken is well known for its high liquidity, affordable transaction fees and fast transactions.Their reputation has made them a very popular in the cryptocurrency world.
This enables you to buy and sell Bitcoin as well as trade between big coins and euros and different types of regular currencies. The trading fees using this platform ranges from 0.05% to 0.75%.
This is the largest crypto exchange regarding volume. It has a high liquidity for most alternative coins and Bitcoins. The main issue with large crypto exchanges is that they have a history of running away with customer money, especially those that invest in purely alternative coins.
If this cryptocurrency exchange were to exit the market, this could lead to many crashes within the alternative coins markets.
If you choose to use Poloniex, try to limit the amount of time you store the money on the exchange. This cryptocurrency exchange is a big target for hackers due to a large amount of volume that it processes.
There is a high risk of you losing your money to a hack. It is also one of the first platforms to support Ethereum classic. The trading fees using this platform are a flat 0.2%.
What should you look for in a cryptocurrency exchange?
Firstly, make sure that the exchange is regulated. If it has a history of hacking such as Polonius, you need to be extra careful. The currency exchange should also have good customer support and responsive to any support request.
Upon research, you will find different reviews from customers in which you can evaluate which could to currency exchange is the best one for you. It is best for you to go for an exchange which has been around for a good amount time and have a solid reputation. This guide will provide you with comprehensive analysis about which cryptocurrency will work best for you.
What are the risks associated with cryptocurrency exchange?
It is essential that you do not store your coins on an exchange. If you do not have the private keys to your coins, they do not belong to you. This is one thing that you must follow whenever you get into cryptocurrency exchange markets.
Make sure that you have a secure crypto wallet that you use to store your coins. Hacking is increasingly prevalent with over 900 different cryptocurrencies available in the market today.
The decentralization of cryptocurrency makes it a highly lucrative target by hackers. Once your cryptocurrencies are gone, there is no way to regain it.
This is one of the cons of the high anonymity feature that comes with cryptocurrency as it is not possible to trace the transaction back to the anyone.
For the best method to store your money, hardware wallets are one of the priciest options, but it is a must-have option for your wallet. With the high risks of hacking, it is even more essential that you take proper precautions to store it properly. Cryptocurrency requires you to get into it with extreme precaution.