Cryptocurrency Exchanges were created to handle digital currencies. which -despite their multiplicity and diversity- have gained great popularity among investors around the world, as they are considered a golden investment opportunity. However, seizing these opportunities and making profits depends on choosing a Reliable and effective digital currency trading platform.
Best Cryptocurrency Exchanges
What are Crypto Currencies?
A cryptocurrency simply is a new form of digital money. So, it’s an asset with a predetermined value –that changes due to various reasons. traders now use it as a payment means for online purchasing, either for goods or for services. Unlike paper money, cryptocurrencies have an insensible form. They work through decentralized networks based on a technology called the blockchain.
Blockchain is a public computerized transaction database system. this system record the transactions made in a cryptocurrencies are stored and controlled across disparate networks. these networks have a peer-to-peer form connection.
A distinguishing feature of cryptocurrencies is the fact that they are immune to the government’s manipulation or even their interference, why. Simply, because no central authority issued these coins. So, they can not control them. However, you might not be familiar with cryptocurrencies as a concept. But, you are with the most famous one among them all, which is Bitcoin.
Bitcoin and Other Alternatives
Bitcoin is the first open-source software by the mysterious and pseudonymous Satoshi Nakamoto. “Satoshi Nakamoto” released This decentralized cryptocurrency in 2008-2009. As other cryptocurrencies bitcoin is operated by a decentralized authority and it represents a balance stored on a public network that everyone has transparent access. Since 2008, other cryptocurrencies have been released.
Other cryptocurrencies created after Bitcoin’s success, labeled as “altcoins”. Altcoins include Namecoin, Litecoin, and Cardano, as well as EOS, Ethereum, and Peercoin EOS. Nowadays, the total value of all the cryptocurrencies in existence is estimated by $1.5 trillion. Bitcoin acts for over 68% of the overall value.
How do Cryptocurrency Exchanges Work?
What is Cryptocurrency Exchanges?
Cryptocurrency exchanges provide the needed cash flow for trading. Thus, you can exchange your cryptocurrency for dollars, stable coins or other alt coins. Selling and buying orders play the main role in determining the market price for the cryptocurrency.
Are Cryptocurrency Exchanges the only available choice?. The answer is no, crypto brokerage is another available alternative. And it slightly differs by the means of setting the prices. Crypto brokerages place crypto asset’s price depending on the market price of the asset. But the price of crypto on exchanges is straightforwardly set by investors’ buy and sell orders.
How Does Crypto Trading Work?
Practice is the perfect way for you to master the crypto trading and achieve the desired results. However, as a beginner you should be familiar with the very basic principles, which are:
Crypto market is especially unstable market, which works uninterrupted for 24-hours.
Cryptocurrency trading is similar to real market trading, but it isn’t a fraction of a regular stock exchange.
6 Steps to Master Crypto Exchanges:
The following steps will help you to understand and start your first trade:
- Send your existing coins to an exchange account or use one of the platforms to buy crypto.
- Start observing the prices of other available assets on the exchange.
- Select the suitable trade.
- Now, start placing orders (buy/sell).
- The platform you are dealing with will find a seller/buyer who matches your order.
- The exchange finishes the transaction.
Cryptocurrency Exchange Platform Fees
The platform`s cut usually is 0.1%, which is a relatively high charge.
But this is because the average daily trade volume exceeds $55 billion. Therefore, lucky traders could build a real fortune doing this.
Professional traders do not depend on luck only, they use their math’s skills. But an enormous market such as the Crypto market needs more than luck or even math skills. Therefore, professionals use several programs to help them with deciding which the right asset is at the time, including market analyzing software.
How to Choose Between Exchanges
Below are 5 fundamental factors and features you should take in consideration when choosing the suitable cryptocurrency exchange for you:
- Governmental restrictions according to your Geographical location: in this you have to be aware of country`s regulations and laws on crypto and blockchain.
- Transaction charges and platform fees: before choosing the right platform for you to start trading, it would be helpful to check the deducted fees for each transaction on this platform.
- Security: although cryptocurrencies are stored and controlled across disparate secured networks, but it doesn’t mean that no one can hack it. Loses due to hacks estimated with billions within the past year. Therefore, Security, support and anonymity must be the first aspects to check when choosing a cryptocurrency exchange.
- User interface and functionality: once you are using an exchange platform, you will need to check it daily. And a good UI will facilitate your access to the data, information and features you need.
- Volume and liquidity: in some levels the volume of monthly trading for the cryptocurrency exchange you choose, will reflect the performance you do and to your profits, so choose wisely when it comes to this.
At the end, we confirm the idea of going with cryptocurrency trading as a profitable option. taking risks can pay off, but only if you do the needed research and calculations. However, trading platforms are abundant and opportunities are open to everyone.
Also, deciding the best platform for you depends on many factors, some of which are related to your capabilities and your location. So, choose wisely. At the end, we confirm the idea of going with cryptocurrency trading as a profitable option. taking risks can pay off, but only if you do the needed research and calculations. Trading platforms are abundant and opportunities are open to everyone. deciding the best platform for you depends on many factors, some of which are related to your capabilities and your location. So, choose wisely.