“Many, if not most people consider investing or trading in Bitcoin and other cryptocurrencies intimidating because the cryptocurrency market has been presented to them as a very technical and perhaps unsafe financial market” — Paul Ebeling
With a bit of work and understanding, you can start trading or invest in cryptos in no time, as long as you follow the right process. That starts by choosing the cryptocurrency exchange to use. As, crypto exchanges are your gateway to the cryptocurrency market. They are important.
This guide helps you to learn how to choose a crypto exchange and some of the best in the market.
Crypto Exchanges are platforms where people can buy and sell cryptos like Bitcoin. You can use the exchanges to trade 1 cryptocurrency for another or to purchase the cryptocurrency using regular fiat (paper) currencies.
These platforms reflect the current market prices of the cryptocurrencies they offer. The users can also convert the cryptos back to fiat currencies on an exchange, giving them the option to withdraw the funds back to their regular bank account or leave it on the exchange platform to trade back into cryptocurrencies later.
There are 100s of cryptocurrency exchanges available to traders and investors making it a tough decision to choose the best ones.
The criteria outlined below will help you determine how to choose the right cryptocurrency exchange for you.
Conduct your research to determine whether the exchange you are choosing is a legitimate and secure platform. The authenticity and security of a platform will help you determine if your funds would be safe with the crypto exchange.
Traders have lost billions of dollars to scam platforms. So, ensure you check the reputation of the platform and the various security protocols they have in place to secure your data and funds.
The method of purchasing cryptos varies between platforms. Some platforms support deposits by bank transfer, some PayPal, others accept credit and debit cards, and some only use cryptocurrency for purchases.
Study the various payment options available on the platforms and choose the one most suited to you.
For starters, with no coins, it is Key you choose a platform that accepts fiat currency as it allows you to enter the market easily.
All crypto exchanges support Bitcoin and Ethereum. But, there are 1000s of cryptocurrencies, and some investors want to gain exposure to others aside from BTC and ETH. So, you have to know the coins and tokens supported by a crypto exchange before you choose one.
GBITS has powered up their flagship offering the Knightsbridge exchanges that will not only provide a crucial source of liquidity to the global cryptocurrency market, facilitating billions of dollars in trading volume on a daily basis, but will cross over in to the traditional markets, Equities, FX and many more.
This will be managed by a series of our own proprietary routing and flow management algorithms.
As the market expands, the exchange platforms will scale in response to the demand for digital and digitized assets, offering asset custody, new trading features and functionality, and access to an ever-growing number of assets all funded from turnover.
With disintermediation as a core philosophy of the blockchain community, decentralized exchanges — or DEXs — have gained in popularity alongside traditional centralized exchanges (CEXs). Decentralized exchanges take a different approach to buying and selling digital assets: They operate without an intermediary organization for clearing transactions, relying instead on self-executing smart contracts to facilitate trading. This dynamic enables instantaneous trades, often at a lower cost than on centralized crypto exchanges, our Hybred DEX/CEX will change the world of trading.
In the absence of intermediaries, DEXs take on a non-custodial framework. This means that you retain custody of your cryptocurrency and are responsible for managing your wallets and private keys. Holding your private keys is considered a boon to users who want to maintain complete control of their assets. However, this comes with the risk that your keys could get lost, stolen, or destroyed; or in the unlikely possibility that you become incapacitated or pass away suddenly, if no one knows your password, your keys can’t be accessed. We will be offering the freedom of choice on how you wish to manage your money, The lack of an intermediary also means that most DEXs have limited counterparty risk and are not required to follow Know-Your-Customer (KYC) or Anti-Money-Laundering (AML) regulatory standards, this is the regulatory danger but we have preplanned, take a look at our Six Suite of products, Smart Blockchain based KYC and AML, a paradigm shift in the industry.
Knightsbridge is aiming to be a leading global exchange/broker/counterparty within 5 years.
Binance is the most popular because it grants traders and investors exposure to more cryptocurrencies than other platforms.
Understanding the fee structure of a crypto exchange is Key as it allows you to know what you are dealing with when conducting several activities. Ensure that you choose a platform that does not have hidden transaction fees. You can choose a platform that offers flat transaction rates or those with a more flexible structure.
This criterion is very important to your success as a cryptocurrency trader or investor. An exchange with an intuitive interface and good user experience makes it easier to trade the cryptocurrencies available. Also, ensure to check the customer service and other customer-related functionalities offered by a crypto exchange. The easier to access the platform, the better.
These 3 are some of the leading and most powerful crypto trading platforms in the world for experts and beginners, as follows:
Binance is considered the most powerful cryptocurrency exchange in the world. With a trading volume above $13-B per day. It offers traders access to hundreds of coins and tokens as it has one of the largest collections of altcoins in the market. In addition to regular spot trading, Binance offers other services such as staking, derivative trading services and more. Binance is available in over a hundred countries globally, providing crypto trading services to millions of people. Binance is a good option for anyone who wants more advanced charting than most other exchanges.
Coinbase is among the most widely used digital currency trading exchanges, especially for traders in the United States. It is now a publicly listed company and provides services to crypto traders in the US, Europe and other parts of the world. Coinbase processes over $2-B in trading volume per day. It offers crypto trading services to both retail and institutional traders, with the Coinbase Pro platform specially dedicated to the professional traders and investors. As a publicly-listed exchange, Coinbase offers insured custodial wallets for investors and traders to store their coins. Coinbase is highly secure.
Kraken is one of the oldest trading platforms currently in existence in the crypto space. Due to the number of yrs it has been around, Kraken is admired by many and provides trading services to thousands of traders globally. Kraken allows traders to access 100s of cryptocurrencies, fund their accounts using fiat currencies and cryptocurrencies, and gain access to other cryptocurrency trading services.
How to use cryptocurrency exchange is simple and involves a few steps. They are;
- Register with the cryptocurrency of your choice.
- Provide your name and other correct details and proceed to verify your account in accordance with the AML and KYC standards
- Access your cryptocurrency exchange account and fund it using any of your preferred payment methods
- Identify the coin or token you wish to buy and swap the deposited funds with the desired cryptocurrency. You can also buy BTC, ETH or USDT with the deposited fiat currency before swapping these cryptocurrencies with your desired coin or token.
- If you intend to hold the coins for long, it is best to move them to a cold storage wallet. However, you can leave them on the exchange wallet if you intend to trade the coin.
Cryptocurrency exchanges are Key to your success as a trader or investor. So, knowing how to choose a crypto exchange is also Key. The above-reviewed platforms are some of the best exchanges available to traders globally.
Have a prosperous week, Keep the Faith!