How to choose the right cryptocurrency exchange
With the advent of cryptocurrencies, it became necessary to buy and sell them for ordinary money, exchange different cryptocurrencies among themselves. Therefore, the first exchanges appeared immediately after Bitcoin owners wanted to get dollars or other currency for them. With the growth of popularity and the emergence of new cryptocurrencies, cryptobearches were also created. There are already many exchanges where all existing cryptocurrencies are traded, like stocks, commodities and common currencies. Trading in digital assets is available to everyone. But to do that, you have to choose the right fast crypto exchange.
Read it too:
- “Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
- “Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash
- “How easy it is to invest in Bitcoin on Forex?”
- “How easy is it to trade Crypto-currency at the Forex market?”
- “What happens to Bitcoin in 2018?”
- “The future of IOTA: Why does Tangle beat Blockchain? Iota’s forecasts for 2018
- “How to Buy Bitcoin Online. Fast. | 5 best ways to do it.”
What is a stock exchange cryptocurrency
The development of the economy and changes in the international trade system gave impetus to the emergence of new exchange technologies. Nowadays trade deals are made on the basis of modern computer programs. The latest information technology allows you to exchange currencies, sell, buy goods and other resources anywhere in the world.With the advent of cryptocurrencies, they became the same object of the exchange process as any other assets. The first bitcoins were sold on the Mt.gox exchange, which was founded before the advent of cryptocurrencies and traded game cards. Up to 2014, about half of the world’s Bitcoin turnover was concentrated on the exchange. As a result, the Mt.gox exchange was closed due to unauthorized withdrawal of funds from clients and owners.By this time, many new exchanges had already been organized, specially designed for the exchange of cryptocurrencies. New cryptobearches were created on the basis of more advanced computer technologies, with an increased security system. Functionally, a cryptocurrency exchange can be defined as a virtual resource where cryptocurrencies are exchanged for regular money or between themselves.Crypto-exchanges are established by individuals or companies and are not subordinate to state authorities. But in the U.S., for example, to open a cryptobirch, you need to obtain a license to conduct currency transactions. Chinese authorities are introducing regulation of cryptocurrency exchanges.
How the cryptobirch works
The mechanism of operation of cryptocurrency exchanges does not differ fundamentally from that of stock exchanges or currency exchanges. Registration and participation in trading is available to almost anyone, except for some regional exchanges, where there are restrictions on residence. Participation in trade often requires proof of identity. After registration, accounts are opened for the user in regular currencies and cryptocurrency wallets are created. Deposit methods can vary and a fee is charged.The information components of all exchanges are similar. It is necessary to have charts of cryptocurrencies movement, current quotes, cups of orders, history of deals. To buy or sell currency, the user creates an order where the desired price is set. This order gets into the general list, waiting for the counter order of the buyer or the seller. It is easier and faster to buy the right cryptocurrency at the offered price, but it is not always profitable. Each transaction is subject to a commission. After the transaction, cryptocoins are credited to the corresponding stock exchange wallet of the participant. Funds can be stored on stock exchange accounts for an unlimited period of time, and the withdrawal fee is usually paid by the payment system.
The difference between cryptobearches
Crypto-exchanges differ in many ways, such as trading volumes, security, commission and interface language. But the main ones are the choice of cryptocurrencies and the possibility of entering and withdrawing ordinary currencies. There are exchanges, such as Poloniex, where only cryptocurrency trading is supported. But there are about a hundred different cryptocurrencies traded here. Some exchanges only support the exchange of common currencies for cryptocurrencies. But most cryptocurrency exchanges provide trading in all currencies.Another important factor is the mode of trading operations. A distinction is made between normal trading without leverage and margin trading. There are stock exchanges that support one or both of them. In case of margin trading, participants can lend to each other or get leverage at the expense of the exchange.There are several exchanges that are more like exchange services. One of these is Localbitcoins, which brings together buyers and sellers directly. They pay a commission to the exchange, and the transaction is concluded between themselves.Some of the recent functions of the cryptobirch have been performed by the Forex company, including those that you will find in this section. They allow you to deposit bitcoins and trade popular cryptocurrencies with leverage.
Who needs cryptobirch services?
In order to choose the right cryptobierge, you need to understand its purpose. There are miners of cryptocurrency who need to exchange earned coins for regular currency. Often, miners who earn efirium, dash, monero or other cryptocurrency exchange these coins for Bitcoin. Usually, these users do not care about the current exchange rate, they need an exchange from which to withdraw dollars, euros or other currencies.The bulk of clients of the cryptobirch are investors. Such people buy cryptocurrencies in the hope of long-term growth. Any stock exchange where you can buy cryptocurrency and bring it to your wallet is suitable for them.A significant part of the users of cryptobearches are traders – speculators. They mainly use margin trading and make a lot of transactions within a short time. Such clients are interested in low commissions and speed of order execution.
Parameters of exchange selection cryptocurrencies
The most important parameters for choosing a cryptoboard are reputation and reliability. The fact is that exchanges cryptocurrency from the very beginning of their activities were attacked by hackers. There have been cases of stock exchange closures due to theft of funds. It’s possible that the owners’ fraud may be involved. Therefore, the most reliable exchanges are those under the jurisdiction of the U.S., Japan, China, South Korea, and other countries where they are somehow regulated by the state. The first licensed cryptobirch was opened in Switzerland.The following criteria should be taken into account when selecting a cryptoboard:
-
The size of the commission.
All exchanges charge commission fees for deposit and withdrawal of funds, for opening and closing of the order. The amount of commission and the method of calculation can be different. Therefore, it is necessary to find out how the amount of commissions can affect the profitability of trading.
-
Methods of account replenishment.
At the best exchanges, clients are offered many options for depositing and withdrawing money. Well, if besides bank transfers and payment cards there is a possibility of replenishment from popular payment systems WebMoney, Yandex Money, Qiwi and others. But if there is no possibility of bank transfers, it should be alarming. Support for popular currencies is also important. Some Asian cryptobarkets accept only the national currencies of their countries.
-
Verification.
Confirmation of identity is not required on most exchanges. However, verified accounts usually increase trade opportunities and security. Of course, there’s no point in doing it for a single deal.
-
Liquidity.
This is an important indicator that can be determined by the daily turnover of the exchange. The higher the turnover, the higher the liquidity, and therefore the faster the execution of orders.It’s impossible to find the perfect stock exchange for everyone. Therefore, we need to be guided by our own needs and capabilities. For the final choice, one should familiarize oneself with the ratings of cryptocurrency exchanges, which are regularly published on specialized resources.
Read it too:
- “Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
- “Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash
- “How easy it is to invest in Bitcoin on Forex?”
- “How easy is it to trade Crypto-currency at the Forex market?”
- “What happens to Bitcoin in 2018?”
- “The future of IOTA: Why does Tangle beat Blockchain? Iota’s forecasts for 2018
- “How to Buy Bitcoin Online. Fast. | 5 best ways to do it.”
Brokers who have Bitcoin trading available
- XM.com
- Etoro
- Plus500
- Instaforex
- FXTM
In conclusion, watch the video review of popular cryptobearches