Cryptocurrency exchanges are very important in your crypto trading journey. They are the source of your coins, and without them, most people would not be able to trade.
For those who are not familiar with the term cryptocurrency, it is a digital currency that operates on the Blockchain technology and is largely peer-to-peer based.
What is a cryptocurrency exchange?
A crypto exchange is simply a website that deals with selling, buying, and exchanging cryptocurrencies either for other cryptocurrencies or for fiat money. There are very many crypto exchanges today, new ones keep cropping up every day. They vary in safety, the fee charged, sign up procedure, and so forth. Some require personal information when you are signing up while others don’t.
Types of crypto exchanges
If you are a total newbie, the first step you need to take is figuring out the exact type of crypto exchange that fits your needs. Below are basic types of crypto exchanges
These platforms mainly connect buyers and sellers. They also charge a fee on all their users based on the current price in the crypto market.
Enable individuals from all over the world to trade in person and also to exchange money from different currencies with ease. They often don’t have fixed rates; it varies from trader to trader.
They are open to using by just about anyone and the prices are set by a broker.
Things to consider when choosing a crypto exchange
A good reputation
Reviews are a great tool to determine the platform’s reputation. Also, consult with experts and other traders who’ve used the platform before. You are likely to have a similar experience with someone who has used the platform before you.
The fee structure
Most exchanges provide information about their fee structure openly, before joining any of them make sure you understand the deposit, transaction, and withdrawal fees. Compare them to other exchanges and then decide which one fits you best.
The accepted payment methods
While some cryptocurrency exchange platforms are open to a wide range of payment methods, some are limited. It is always advisable to go for this that are open to more payment methods.
Some of the best platforms may require some personal details during sign up. However, you need to know whether you prefer to trade anonymously or pseudonymously. Go for that site that fully takes care of your needs.
Best crypto exchanges