crypto exchange

Investing in cryptocurrency might be challenging for some individuals when it comes to choosing a convenient crypto exchange. There has been tremendous growth in the popularity of digital assets that people can purchase, sell, or trade. With the advent of cryptocurrency exchanges, it is now possible for many to acquire Bitcoin and other cryptocurrency. It has become more accessible in a variety of places and is now more efficient to store and lend it as well. 

On the other hand, the risks involved in investing in cryptocurrency have grown in the past few years. People may run into scams and frauds throughout the trading process. 

However, you can avoid this by choosing a platform that has proven to be safe, secure, and reliable. It is also necessary to consider whether crypto trading is even available in your jurisdiction, as local legislation differs. 

This article can help you find out what a good and appropriate crypto trading platform looks like and how you can choose one to fit your needs. 

Choosing a Crypto Exchange

Choosing a good crypto exchange might be the factor that makes or breaks your crypto journey. Our biggest piece of advice is to always try to sign up with trading platforms that have already build up a solid audience of loyal traders such as Bitcoin Loophole that climbed up the ranks this past year. Of course, there plenty of similar platforms which is why we gathered some of the core features to consider when deciding which crypto exchange to use. 

 

  • Security: Security is one of the most crucial factors to consider since it deals with the safety of your digital assets, especially on trading platforms. It is vital to prevent scams and massive hacks, which will result in the loss of your currencies. You need a platform that can ensure the security of the software you will use for trading or investing in cryptocurrencies. Look for adequate security tools that the company offers for individuals to secure their accounts.
  • Availability: It is also necessary to consider the availability of a good crypto exchange in your area. In this way, you can have easy access to the benefits of your digital assets. You are also more likely to be able to fund your account in local currency as well, which would minimise fees.
  • Coin/Token Support: There has been tremendous growth in the crypto sector as time has gone by. There’s a lot more than just Bitcoin and Ethereum to trade these days. When people invest in or trade cryptocurrencies, exchanges must support the digital assets that pique their interests. 
  • Trading Fees: Trading fees play an important role, particularly in profit margins for active traders. By switching from one crypto exchange to another, they can save a significant amount of money on fees.
  • Asset Liquidity: Liquidity refers to the measurement of how convenient it is to convert a digital asset to physical cash. It’s important to consider liquidity when using a cryptocurrency platform with a high trading volume. Since the prices of cryptocurrencies are volatile, it is significant to monitor and pay attention to the platform’s liquidity. 
  • Supported payment methods: It is critical to consider payment methods when investing in cryptocurrencies. Pick some that support the trading platform you are using. 

 

Kinds of Cryptocurrency Trading Platforms

There are two main kinds of cryptocurrency trading platforms. Below is the specification of each. 

 

  • Centralised exchanges (CEX)

CEXs or Centralised exchanges refers to an online trading platform that is run by a single entity or authority. Individuals use this platform for buying and selling cryptocurrencies, as well as storing them in designated crypto wallets. In addition, exchanges can also help you turn fiat into cryptocurrency. Since CEXs are a single entity, they comply with local laws, such as KYC and AML policies. Identity verification is a must with centralised exchanges. Cryptocurrency brokers also fall in this category.

  • Decentralised Exchanges (DEX)

Decentralised exchanges or DEXs are cryptocurrency trading platforms that are not run by authorities, entities, or individuals. They do not need any governance from third-party alliances. Instead, they run on blockchains and require the corresponding network’s consensus mechanism to stay safe. Individuals can trade currencies without intermediaries on a DEX. Instead, DEXs use smart contracts or automatically executed protocols for facilitating the process of trades and investments between individuals. However, they don’t have custody of the clients’ money. Some DEXs suffer from issues such as slow upgrades and poor user experience. On the other hand, they don’t follow KYC regulations and provide greater privacy.  Popular DEXs include 1inch and Uniswap, among others.

The Best Crypto Exchange for Newcomers

crypto exchange

Though we already provided you with some examples above, we thought it would be convenient to go more in-depth on several of the most popular trading platforms out there. Let’s look at some of the most beginner-friendly crypto exchanges:

 

  • Coinbase: One of the most popular crypto exchanges in the US since 2012 is Coinbase. It offers Bitcoin (and other crypto) selling and buying services with a crypto brokerage provider. As time passes, it has also developed as a staking, trading, custody, wallet, and learning platform. Beginners can easily use its website and also its app accessible on both Android and iOS. 
  • Robinhood: Robinhood can be a worthy alternative for trading. It is more of a traditional asset investment platform that offers cryptocurrency trading options, among other financial instruments. Some of the cryptos it offers are Ethereum, Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, Ethereum Classic, and Bitcoin SV, and many more. Individuals can use Robinhood to buy and sell cryptocurrency quickly and easily. 
  • Binance: Binance is one of the youngest trading platforms that has grown tremendously in a short span since 2017. At the same time, it serves as an ecosystem inclusive of staking services, blockchain networks, spot, futures, lending, P2P trading, and the NFT marketplace. Binance has its own token, BNB, which has one of the highest market caps among cryptocurrencies. Aside from that, Binance is known for catering to clients in numerous countries and ensuring the security and safety of every transaction. 
  • Uniswap: Uniswap is a DEX, blockchain platform that launched in 2018. As it continuously develops, it continues to deliver benefits for individuals. The platform provides liquidity for all decentralised exchanges that simplify the token swap processes. In this way, transactions are faster and more convenient. Other than that, Uniswap supports the trading of ERC-20 tokens safely and efficiently. One worthy alternative for this is PancakeSwap since it uses the same concept of liquidity pools. 

Conclusion

Thanks to the massive growth of the cryptocurrency sector, nowadays there are many trading platforms to choose from, which can be a bit overwhelming. However, this article can serve as a guide for you to select a trading platform that matches your investment needs. It is highly advisable to take your time choosing and conducting research on the company that is most convenient for you to use.

By Jim O Brien/CEO

CEO and expert in transport and Mobile tech. A fan 20 years, mobile consultant, Nokia Mobile expert, Former Nokia/Microsoft VIP,Multiple forum tech supporter with worldwide top ranking,Working in the background on mobile technology, Weekly radio show, Featured on the RTE consumer show, Cavan TV and on TRT WORLD. Award winning Technology reviewer and blogger. Security and logisitcs Professional.

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