If you have found yourself in the middle of the cryptocurrency world lately, then you will know that this is something which is growing in popularity every single day. With that in mind, that means there are more and more cryptocurrency exchanges cropping up all the time too – which can you trust and which should you give a wide berth to? If you want to safely buy, sell, and exchange digital currency then you need to know where to look, and you also need to know what to look for.
Types of the Best Cryptocurrency Exchanges
First things first, we need to be very clear what a cryptocurrency exchange is, and the different types you can use. For the best information on the subject, and everything to do with cryptocurrency, check out Crypto Investing Pro, for in-depth chat and information on what can be a confusing subject to those who are learning. We are dealing with cash here, whether you can see it or not, so it pays to be savvy and to education yourself fully before leaping into this exciting world.
A cryptocurrency exchange is a website which allows users to exchange, buy, and sell their cryptocurrencies, either for other cryptocurrency, or for regular currency, such as Euros, Dollars, Pounds, etc. The best cryptocurrency exchange will have low fees and a quick transaction time, so you need to do your research into which is the best for you and your circumstances.
There are three main types of cryptocurrency exchange available at the current time.
- Trading platforms
- Direct trading
A broker is very much like a foreign currency exchange office, so the rate is fixed, they charge their own fee, and you simply buy from them as you would if you were changing foreign money. This is perhaps the easiest way to exchange cryptocurrency, but it is also the most expensive. First time traders often go to a broker first, because it seems the simplest way. A trading platform offers some good bargains, and this is a website which brings together those who want to buy and sell their cryptocurrency. The site then charges a small fee. This is a relatively simple process to navigate.
On the other hand, a direct trading platform allows users to trade directly, e.g. to the person they are trading with and no middle man. A fee is charged, but this isn’t set and is arranged at the time, so can turn out to be quite low, although can be a little confusing for the first time user.
So, what do you need to look for when choosing a currency exchange?
- Read reviews and check testimonials – word of mouth is everything in the financial world, whether it is cryptocurrency or otherwise
- Understand the fees you will be charged – be sure to shop around
- Check the different payment methods you can use, e.g. credit card, debit card, wire transfer, PayPal
- How long does it take to get verified before you can use the exchange?
- Are there any restrictions on countries you can exchange with?
Again, check out Crypto Investing Pro for more information on the best currency exchange options available to you.
There are many currency exchanges on the Internet which have great reputations. The main ones to do your research on are:
- Shape Shift
By choosing one of these widely used currency exchanges you are getting quality, because they are so commonly frequented. Each has pros and cons, e.g. higher fees for transactions, a few geographical restrictions, and perhaps not the whole range of cryptocurrencies accepted with some, but overall, this range will cover all your bases if you use more than one.
Whilst Bitcoin is certainly the most famous of all the cryptocurrencies, that doesn’t mean that you should simply remain using this particular type, and not branch out into others. It seems that every year a new cryptocurrency comes onto the market and does well, and this can bring about a lot of success for new investors who are shrewd with their decision making processes. When it comes to exchanging your cryptocurrency, you need to be equally as careful with the broker or platform you choose.
The future of cryptocurrency looks very bright and is growing all the time, being savvy on how to us them, how to buy them, how to sell them, and how to exchange them will put you one step ahead of the game, and bring you greater rewards.