What are cryptocurrency exchanges and which are the best ones?

Since its inception, cryptocurrencies have gained popularity and become one of the most attractive financial niches on the market. Whether you are a trader, ICO sponsor or just a beginner in this field who wants to be aware of everything that happens – cryptocurrencies can be your favorite financial instrument. To gain competence on how to manage cryptocurrencies, you must first own such currencies. 

Let’s be precise, clear and concise – exchanges are online platforms where you can exchange, buy and sell both crypto and national currencies. What you need to know is that there are different exchanges, and to choose one of them, you need to consider their type.

Types of Crypto Exchanges

Standard

They connect buyers and sellers, allowing them to trade cryptocurrencies such as bitcoin margin trading according to the current market price in exchange for a fee.

Brokerage

Slightly more expensive: there is an intermediary – a broker who receives an additional commission on the current market price.

Direct Trade

Direct trading platforms offering peer-to-peer transactions, without an intermediary or a fixed price. Base for many decentralized projects.

Tip: Make sure you use a reputable and reliable exchange platform and try to trade with highly qualified users to minimize the risks of fraud.

How to register at a cryptocurrency exchange?

It is very easy to get on board. The successful completion of the registration form requires the provision of personal information. Creating your account involves providing an ID card or driver’s license to ensure that you are a real person. In addition, if you decide to offer a bank statement or current account, this can bring you some additional benefits, such as more effective restrictions.

• First step: Filling in personal data
• Second step: Photo ID confirmation
• Third step: Improving the profile as a professional

How to choose a crypto exchange?

You may be wondering what the criteria are for choosing the best cryptocurrency exchange to suit your needs. Here are some of the factors you need to consider to make your best choice:

• Fees and commissions – the execution of the transaction always requires some kind of fees – these fees can be deposit, trading fees and / or withdrawal fees. Before deciding which exchange you want to continue with, pay attention to how you will be charged in exchange for the use of its services.

• Exchange rate – there are different exchange rates between currencies. Don’t be confused with the commissions and fees mentioned above. Exchange rates can vary greatly between different platforms, so do your own research.

• Payment mode – if we are talking about the initial purchase of cryptocurrencies, the payment mode refers to the way you pay for the purchased coins. Some exchanges only accept cash payments, while others accept both cash payments and bank transfers, credit / debit cards and PayPal, so keep this factor in mind when choosing an exchange. Moreover, different exchanges charge different fees for different payment methods, for example: 5% for bank transfer, but 2% for credit cards.

• Supported currencies – not all cryptocurrency exchange platforms support absolutely all existing cryptocurrencies. Some are focused entirely on Bitcoin, others on Ethereum, so before you make your final decision, you need to pay attention to this factor.

• Verification Requirements – Some exchanges require verification of your identity before allowing you to trade, while others may allow you to remain anonymous. Whatever you prefer, pay attention to what the platform of your choice offers.

• Security – the history of crypto exchanges knows many cases of breakthroughs and hacks. When choosing an exchange, make sure it includes two-factor authentication, that funds are stored in an online or offline wallet, that security monitoring is available, that you receive notifications, such as emails, messages, account activity calls, and message encryption.

• Geographical Restrictions – There may be differences in the properties of your chosen cryptocurrency exchange depending on your destination. Some exchanges are completely inoperative in some countries, while others have limited features, so you should keep this in mind when making your choice.

List and comparison of the best crypto exchanges

After all, in theory it always sounds easier to take into account several criteria and make a choice, but when the same is applied in practice, we distinguish some changes. 

Safety tips

Remember that cryptocurrencies are a new industry and there are no really serious rules and regulations, which turns this field into an appetizing bite of hacker attacks and malicious behavior. Although you cannot be completely protected, there are some good practices that can minimize the risk.

• Check the URLs of this exchange you plan to use. Make sure the addresses start with https instead of http. This minor “s” refers to the security protocol between you and the platform.

• Always check that the exchange you plan to use is registered with the security authority in your country, for example in the United States it will be the SEC – the Securities and Exchange Commission.

• Pay attention to warning signals, such as missing information about the legal entity behind the exchange or the address of the registered office.

• Last but not least, do your own research, paying attention to what is being said about the stock market and if the deal sounds too good to be true – it probably is.