Have you decided which cryptocurrency matches your investment goals? Good! It’s time to look for cryptocurrency exchanges. These are marketplaces where you can buy and sell the underlying digital assets. They provide intermediary services in the tech market by linking prospective investors with digital currency.
Aside from being trusted transaction agents or e-brokers, they offer low competitive fees, trading features, a cryptocurrency security and insurance, and worldwide access for investing in the market.
However, it’s crucial to research the exchanges since most are sophisticated and may confuse newbies attempting to invest in cryptocurrency. Different exchanges have different regulations depending on location and have acceptable coins and tokens for traders in all transactions on their platforms.
In addition, there are centralized and decentralized types of cryptocurrency exchanges to choose from depending on your trading preference or risk appetite. Centralized exchanges are ideal for investors looking for security and monitoring while finding trading partners through a third-party entity. The decentralized exchanges rely on smart contracts since they allow peer-to-peer trading and no third-party or cryptocurrency custody holding on the platform.
So, view it as a vital component of your research and learn the types of exchanges available in the digital currency landscape to make the proper investment judgment. Here’s a quick guide to cryptocurrency exchanges.
1. Binance
Established in 2017, Binance has an attractive array of cryptocurrencies for investors to choose from for their investment goals. The company initially had its offices in China but later closed due to restrictions imposed by the government.
The trading fees are relatively low for spot trading or if you want to buy and sell cryptocurrency instantly in the market. Aside from offering affordable transaction fees, Binance has its token, known as the Binance coin (BNB), which joined the hyper-competitive market of coins and tokens in the cryptocurrency market.
Holding and using BNB on the exchange platform comes with discount incentives when transacting cryptocurrencies. However, Binance is not newbie-friendly, and it’s acceptable in particular states.
2. Coinbase
Coinbase was founded in 2012 in San Fransisco, California. The company considered vital components of investing and trading cryptocurrency and presented it in an all-inclusive package. Coinbase is an exchange that offers users its own digital wallet that allows them to buy/sell and store cryptocurrency.
Along with secured storage features, the exchange platform is transparent and has a user-friendly interface. Perhaps more traders and partners are looking to leverage the tech innovations through the platform.
Coinbase has over 50 varieties of cryptocurrencies that support liquidity in the platform. However, the platform fees are higher, and it withholds control of wallet keys.
3. BitMEX
BitMEX offers a dynamic exchange service that focuses primarily on traders, not investors. It only allows Bitcoin as the main currency in all the transactions on the platform. For that reason, BitMEX users can trade 24-hour period and transact large volumes that range over USD$500 million worth of high leveraged trades.
In addition, BitMEX does not permit fiat currency, and users can take advantage of futures contracts for all transactions. Such provisions as futures contracts ensure traders use Bitcoin to exchange value and deny coin ownership. Also, it allows traders to participate in the trading floor using altcoins, but the gains and losses are in Bitcoin. BitMEX is unavailable for United States traders.
4. Gemini
Gemini launched its exchange service in 2015 to cater to beginners and savvy cryptocurrency traders looking to leverage the digital currency markets. Its upgraded tools and features are beginner-friendly and safe for traders by giving offline or cold storage wallet options. You can access more than 40 different cryptocurrencies at low trading fees depending on your risk appetite.
5. Kraken
Kraken has been operating as a cryptocurrency exchange since 2011 and has gained the trust of most traders in the digital currency markets. It has more than 60 cryptocurrencies for experienced traders with competitive trading fees.
In addition, Kraken has advanced features such as solid cybersecurity measures to protect cryptocurrency holdings. However, the platform is not ideal for a novice looking to invest in the digital currency market.
6. OKEx
OKEx offers a wide variety of cryptocurrencies to users and invites users to participate in company developmental matters. Users can enjoy discounted trading fees for owning OKB, a token held by the platform.
In addition, the company allows fiat and marginal trading for selected or verified traders. It boasts of processing 25 billion Bitcoin trades last year, and the number keeps growing by the minute. However, the company faces regulation issues in some countries.
7. KuCoin
One of the largest cryptocurrency exchange platforms, KuCoin is a straightforward trading interface that novices and experienced traders can use. You can enjoy spot trading and instant buying and selling of over 300 cryptocurrencies at low fees. However, the trading volume in the cryptocurrency market is lower than most exchanges of the same kind.
It’s an ideal cryptocurrency e-broker for beginners since it offers a haven for traders looking to participate in the market with minimum fees and low leverage.
8. Huobi
Huobi is a cryptocurrency exchange with branches in the United States, Hong Kong, Korea, and Japan, headquartered in Singapore. It brings twist to the cryptocurrency brokers’ arena by allowing two different kinds of trading in the market.
You can trade fiat currency for cryptocurrency at zero fees through Huobi OTC. Also, you can enjoy advanced cryptocurrency trading through the Huobi Pro channel. The company is unavailable for US-based traders due to regulation issues.
Thus, the company is working to develop more digital assets to offer platform users a wider variety of investment options.
9. Bittrex
Bittrex has more than 190 cryptocurrencies for traders to pick and trade. It was founded in 2014 and has been growing due to the cryptocurrency security it provides for platform users. In addition, it has a user-friendly interface and appeals to newbies on the trading floor. However, the trading fees are high when comparing the trading volume or trade processed through the platform.
Strong Tailwinds
When entering the cryptocurrency market, you must first understand how the nut and bolts work to move the market. Exchanges offer access to the trading floor or cryptocurrency but at a fee usually charged on the transactions.
The safety of your cryptocurrency is another crucial element that you must check before opening an account with any exchange. In addition, you must decide which cryptocurrency matches your trading goals to avoid confusion that may lead to losses.
