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Crypto Exchanges: Everything You Need To Know About Them

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Crypto Exchanges Everything You Need To Know About Them - Crypto Trading

Photo by Kanchanara on Unsplash

Cryptocurrency exchanges come in many names. The most famous ones, which probably even you must have heard of, are Binance, CoinEgg, and Kraken. These names are being used in such a great abundance on the internet today that almost everyone is familiar with them. A cryptocurrency exchange is where you can buy your cryptocurrency and sell it. This means that it is the trading place for crypto and can turn anyone into an investor.

Crypto Exchanges; The Only Platform For Crypto Trading

The fact that the crypto market is decentralized doesn’t let any bank sell cryptocurrency. As any government organization does not regulate it, there is only one source to buy the digital currency: a crypto exchange.

The process of buying it starts with you making an account on any of the available platforms for crypto trading. No matter you have chosen Ethereum, Bitcoin, or any other form of currency, you will always have to head over to the exchange and make an. Account of your own. This will let you exchange your real currency (dollars) for the assets in digital form.

Choosing The Safest Option

When choosing a crypto exchange, you may have several options available. However, you need to play safe if you are new to the World of crypto investment. For instance, choosing a platform that has been in the industry for quite someone would be a safer choice. Coinbase has been working in the crypto industry for as long as the origin of Bitcoin, and are already aware of the aspects of Bitcoins.

One can say that it came into work when the crypto framework was nascent. Apart from this one, there are other safer options, such as PayPal and Robinhood. However, they offer numerous other services apart from providing crypto trading!

The price at which you will get the cryptocurrency depends on the current market price of that particular currency. You will have to pay in real currency, the country’s currency, to the exchange to buy the digital currency. If you sell it, you will get its current worth in the shape of the local currency. This is called trade back.

There is no one crypto exchange that is perfect for every investor. Rather, when you choose an exchange, you should think of the final goal you have in your mind. Any exchange that would help you achieve your goals is what you need to choose.

Choosing An Exchange

Crypto Exchanges - Everything You Need To Know About Them

Photo by Kanchanara on Unsplash

When it comes to selecting an exchange for yourself, there are many things you need to consider. They include the following features:

1. Easy To Access

When you decide to buy an exchange, your location matters a lot. Where you live may prevent you from trading crypto on some exchanges owing to state regulation. Certain countries, for instance, China, don’t let their citizens buy cryptocurrencies from the exchanges.

On the other hand, in the United States of America, a few states regulate the exchanges themselves. They do this by requiring the exchanges to seek permission from the state regulators to start functioning in that particular state.

However, many countries don’t put any regulations on the exchanges at all. Before choosing an exchange, being aware of all kinds of geographical limitations is necessary.

2. Security Offered

There is no central authority to back cryptocurrency. Hence, it may not be as secure as your regular currency is. Traditional investments are also much safer than the cryptos offered by the exchanges.

If you are worried about the security of your cryptocurrency, you need to get it from the exchanges that offer insurance policies against them. This will protect your currencies and will save you from all kinds of potential frauds and hacks.

For example, Coinbase is a reliable exchange as it is insured. It comes with an insurance policy of around 255$ million. In case the exchange reserves get hacked, the company will be able to pay the account holders. The same goes for Kraken that protects the clients through extensive security practices.

Conclusion

Your choice of exchange should align with your goal whether you need to keep the holdings for a short period or have them for long. The exchange you opt for must be highly secure and keep you safe even when offline.

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