Hello friends !!
If you’ve heard the word cryptocurrency, then there’s a 99% chance of you being familiar with cryptocurrency exchange platforms too.
What Is a Cryptocurrency Exchange / Trading Platform ?
We can’t simply go to a bank and ask for any digital currency. Instead, We’ll need a proper digital platform for making any trade in Bitcoin, Ether, Ripple or as a matter of fact any crypto. After all, that’s the whole point of creating digital currencies.
Cryptocurrency Exchange / Trading platforms are such online portals that allow we to exchange a digital currency (cryptocurrency) for another one or even a fiat currency depending upon the type of exchange.
You do not need to right away choose the first exchange option you see on Google search. Take your time to research as different crypto exchange platforms available in the market vary from each other in terms of functionality and style of trading they offer. Mainly three types of platforms are available in market :
1. Traditional Crypto Exchanges: If you see yourself as someone who has enough experience of dealing in the stock markets, traditional crypto exchanges might seem familiar to you. These platforms operate in a similar manner except for the fact that they deal in cryptocurrencies rather than fiat currencies. They also charge a small percentage of the trade in the form of their platform fee.
2. Crypto Brokers: As the name suggests, these platforms allow you to deal in cryptocurrencies according to the price set by the broker. The cost of using these exchanges is slightly higher than traditional exchanges, but they are comparatively easier to use.
3. Trading Platforms : Opposed to the traditional platforms, these trading platforms allow you to conduct exchange in a peer-to-peer manner. They match your selling/buying prices with the orders placed by other users and allow the trade to take place once both amounts match.
The market is still flaunting its potential and, therefore, all you need to do is find the right exchange and start investing. Following is a list of cryptocurrency exchange platforms, which i like to use, for your reference:
If your focus lies in crypto-to-crypto trading, Binance is the option you can go ahead with. Binance is ranked as one of the most popular cryptocurrency exchanges worldwide. Being natively evolved from China, it offers its features and functionality to traders worldwide. On the top of this, it’ll also provide you with impressive offerings along with an extremely low trading fee.
Though the Binance platform hasn’t been too old in the field of exchanges, it has taken over and gained a rapid growth by getting listed in the top 10 cryptocurrency exchange platforms of current times. Binance holds a huge selection of altcoins with Bitcoin, Ethereum, and Tether pairing.
The exchange offers its own coin named as BNB (Binance coin). Being a centralised exchange, you can get decent discounts while conducting trade in their own tokens i.e. BNB. Before investing through any exchange, your major concern might be the fee structure. Thanks to Binance, as it offers a standard trading fee of only 0.1% which can further be reduced up to 50%, if the payment is conducted in BNB. Moreover, you can register and operate on both web and mobile (Android and iOS) interfaces which are very simple and user-friendly. The platform supports to verified accounts, withdrawal funds up to 100 BTC/day, however you can request for more limit at their support.
For Registering at Binance, you can refer this link BINANCE
Bittrex is a US based crypto exchange platform that allows you to trade in large numbers of trading pairs. You’ll also be able to get all the major cryptocurrencies on the platform including litecoin, darkcoin, and nextcoin. Along with this, it also offers Ethereum and Neucoin. If you are looking for a platform that offers reliable security, then Bittrex is the right choice for you as it offers 2FA and is well-regulated and compliant with the rules of the United States.
Known for handling one of the largest Bitcoin volumes out of all the crypto exchanges globally, Bittrex allows you to decide the trading rates with a service fee of around 0.25%. Moreover, a lot of your time will be saved as the verification process in Bittrex is pretty fast which allows you to start the trading process without any major halt. The platform supports two types of accounts namely, Basic and Advanced with withdrawal funds up to 100 BTC/day, respectively.
For registration on Bittrex, all you need to do is just a simple log in through your email ID. However, for the purpose of withdrawing funds, you’ll need to go through the process of KYC and submit your personal details such as ID cards and phone number. Another noteworthy thing is that Bittrex is a “crypto-only” exchange, thus, it does not allow you to deal in fiat currencies.
For Registering at Bittrex, you can refer this link BITTREX
Poloniex was started in the year 2014 and has become a preferred platform for crypto exchange and trading since then. You might want to pay attention to this US based platform as it offers more than a hundred cryptocurrencies to its users for trading. What makes the exchange unique probably the most preferred choice of people like you is that, it holds the highest volume for Ether as it supports both Ethereum and BTC markets independently.
Similar to Bitterex, Poloniex is also a crypto-only exchange which will allow you to go ahead with your trading by depositing Tether dollars. The fee charges for this crypto exchange depends upon your choice (whether you are a maker or taker) and can be 0.15% to 0.25% accordingly. Traders looking for a variety of altcoins can check Poloniex for their requirements. Although you’ll get an intuitive mobile-friendly website to place your trade; there are no options in terms of mobile applications.
If you are a long-term, professional trader, Poloniex can be suitable for you but if you’re entering the market as a newbie, it can be a little challenging. You’ll also find a wide range of methodical data-analysis tools, clubbed with charts including precise details that help the users to make informed trade decisions.
For Registering at Ploniex, you can refer this link POLONIEX
Things to check Before Investing/Trading :
Like stock exchange and money trading, crypto trading is not a piece of cake. You need to learn the basics, gather all the necessary information, and get prepared before ultimately heading towards investments. Here’s a list of things to check before finalizing an exchange :
- Stature - Many people are using crypto exchanges for trading these days. Some of these are professional traders also. You can collect insights and feedback from such people as well as online resources in the form of blogs, video reviews, etc. and check the ranking and reputation of the exchange you’re willing to invest in.
- Fees - Almost all the exchanges include the information regarding their fee structure on their websites. You can check and gain more knowledge about different fee involved in crypto exchanges including deposit, transaction as well as withdrawals.
- Verification criterion - Since cryptocurrencies aren’t government regulated, trading on exchanges is posed to hacks and misuse of identities. Therefore, all the reliable exchanges will ask you for the verification of your personal identity in one or the other forms to make deposits and withdrawals. To remain on the safer side and avoid money laundering and frauds, you must opt for the step of identity verification while registering on an exchange.
- Location restrictions - Exchange platforms are subject to risks. Due to this reason, some of the exchanges limit the availability of their features to specific locations. Before investing in an exchange, you must read the terms, conditions, and policies thoroughly in order to avoid getting stuck in a situation like this.
- Modes of Payment - Cryptocurrency exchanges allow you to deal in crypto through different modes of payment like Debit card, Credit card, Wire transfer, and even PayPal. However, the number of payment modes offered by different exchanges might differ. You should choose a platform that offers you multiple options for payment purposes rather than the ones having a single mode.
- Exchange Rate - Similar to the payment options and charges, crypto exchange platforms differ in the terms of exchange rate too. You can save a good chunk of your money by spending more time in learning about the rates offered by different platforms.
In short, when it comes to trading in cryptocurrencies, you’ll get many options for buying and selling your digital assets. However, it is extremely important for you to study, research, and then invest your money in these cryptocurrency exchange platforms as exchanges are independent entities and are subject to risks.
In order to keep your crypto investments safe, you can keep your records in a separate hardware wallet and keep a track of your trading stack. Features of some cryptocurrency exchange platforms may vary from other platforms and that’s why it is important for you to find the one that matches your needs. Once you are sure about the exchange that fulfils your requirements, go ahead and trade. My personal suggestion for trading is Binance and Bittrex.
Happy Investing and Trading
Source : Hackernoon