Using cryptocurrency exchanges is the most popular and widely used method of buying and trading crypto. Whether you want to purchase them using fiat currency or other tokens, you can do so on these platforms that run, monitor and facilitate transactions 24/7.
There are two types of exchanges in the crypto industry, centralised and decentralised. The former refers to those run by a private company while the latter refers to peer-to-peer networks running independently from any central control.
Apart from their definition, there are other things about crypto exchanges you need to know before choosing which one to use. To help you know more about them and their ins and outs, Casino Days has listed all about exchanges including the best options below!
What to consider in an exchange
Before using any exchange, there are a couple of features you need to consider to ensure you’re getting the best crypto services. From security, proximity, fees, liquidity and even the variety of cryptocurrencies they offer, you have to familiarize yourself with these aspects to make informed trading decisions. So to grasp the idea better, here they are apart and explained:
One of the first things to greatly consider when choosing a trading platform is security since cryptocurrency exchange sites can be vulnerable to online attacks. To prevent fraud or hacking, choose a widely known platform with insurance policies and strict online security measures such as two-factor authentication.
As an extra precautionary step, check if an exchange keeps their assets in cold storage, meaning off the internet. This will ensure that your stored coins won’t be kept online where they can be accessed by hackers.
Another factor to think about is proximity. When it comes to cryptocurrency exchange, your location is important since it generally falls under your state or country’s regulations that can significantly affect the exchange. Some crypto exchanges are not available in certain countries. so before signing up, make sure an exchange site is available in your country.
Most, if not all cryptocurrency exchanges require fees to complete a transaction. These can either be fixed prices or percentage-based depending on the type of cryptocurrency and trade volume. But don’t let high fees stop you since these can sometimes be a safer option.
Higher fees usually come with better protection, insurance and faster confirmation time. This is something to consider to ensure your transaction completes securely at your preferred speed. So before proceeding with any transaction, make sure to check on the benefits that come with the exchange and weigh if the perks are worth the fee.
Variety of cryptocurrencies
Another great thing to consider when picking out an exchange platform is the variety of cryptocurrencies they offer. The wider the variety, the more accessible the exchange becomes to traders which means more trading options and bids.
The list doesn’t have to include all available cryptocurrencies on the market. As long as an exchange offers the top and most popular coins including those you want to trade, it’s already a great option for you to use.
Additionally, you should look for well-known cryptocurrencies such as Ethereum, Bitcoin, Litecoin, Ripple and so on when checking an exchange’s list of supported coins. If a platform doesn’t offer the top 10 tokens, you should take it as a red flag and find out if there’s any reason behind their unavailability.
Popular cryptocurrency exchange platforms
Now that you’ve grasped what to look for in an exchange, it’ll be much easier for you to choose a platform. You’ll find an array of these platforms online but to help you filter through them, Casino Days has listed the best ones below:
Binance is one of the most popular cryptocurrency exchange platforms around that offers a wide variety of available cryptocurrencies. The great thing about this platform is that it has transaction fees for as low as 0.015 to 0.1%. Plus, you get access to a more advanced trading platform and digital wallet as soon as you open an account.
This allows people from all around the world to deposit using crypto deposits, credit or debit cards, but it only takes US dollars via SWIFT.
Coinbase is another reliable cryptocurrency exchange platform that doesn’t just have a navigable interface but also high liquidity capability, making it the perfect site for beginner and veteran traders alike. It offers 123 available cryptocurrencies and comes with a digital wallet. You can also opt for its more advanced trading platform, Coinbase Pro, where you can make more trading options and access advanced tools.
If you’ve got your eyes set on Bitcoin alone you can try sticking with Cash App. They only offer one cryptocurrency but allow users to conduct a peer-to-peer transaction through Zelle or Venmo. It’s easy to use and gives you more options when it comes to withdrawing cryptocurrencies from your digital wallet, making it a perfect platform for beginners.
You can also opt to use this platform when investing in stocks and investing on cryptocurrency. Cash App can also be used for many other things like paying rent, ordering food online, shopping online and so on. You can even get a Cash App debit card if you want.
Last but not least, Bisq! This platform offers a variety of cryptocurrencies as well as fiat money. Once you open an account, you’ll instantly have your own digital wallet and you’ll be pleased to know that they also have considerably low transaction fees that go as low as 0.05%.
Among the other platforms on the list, Bisq is the only decentralized one so it’s not controlled by a private company. This platform is one of the convenient picks on the list since it’s also available on mobile phones, both Android and iOS but you can always opt to download its software on your computer.