A cryptocurrency exchange facilitates the trading of cryptocurrencies, in exchange for other assets such as fiat money or another digital currency, and delivers the coins to the customer’s crypto-wallet. There are a handful of cryptocurrency exchanges in the
market today and they offer a wide variety of cryptocurrencies that customers can choose from. They make profit by charging additional fees for every transaction made. Exchanges act as the medium between the traders.
Choosing a cryptocurrency exchange is the first step to cryptocurrency trading. Since most of them offer the same kinds of digital currencies, there are factors that a person must consider in choosing an exchange. First, know what cryptocurrencies you would like to purchase and what will you use to purchase your coins. There are exchanges that allow buying cryptocurrencies using fiat currency and others recommend using Bitcoin to purchase other digital coins. Second, choose an exchange that is near to your location. In this way, it is easy to take actions when something happens to your coins or when the exchange suddenly shuts down their operation.
Lastly, always consider its stability, security and transparency. Do not trust exchanges with controversies and issues regarding security as they are typically scammers and potentially thefts. Research well about exchanges and ask experienced traders on which one to trust and which one to avoid.
Coinbase
Coinbase is one of the most prominent digital currency exchanges in the market today. Its headquarters is located in San Francisco, California. It offers a wide variety of cryptocurrencies such as Bitcoin, BitCash, Ethereum and Litecoin. It allows purchases using fiat money and supports currencies from 32 countries, while facilitating transactions and storage in 190 countries. It is one of the go-to exchanges for veterans and beginners alike because Coinbase has proven that it is secure, stable and transparent, serving 10 million satisfied customers and continuously growing.
Kraken
Kraken is another cryptocurrency exchange that is making its mark on the cryptocurrency market. It operates in Canada, but its headquarters is located on the United Sates. It is currently the record holder of largest bitcoin exchange when it comes to Euro volume and liquidity. It offers the top cryptocurrencies such as Bitcoin, Ethereum and Litecoin and also a wide selection of altcoins. When Mt. Gox suddenly fell, Kraken was chosen to be its trustee to distribute their remaining funds, because Kraken’s system has never been attacked by hackers and other malware, proving its promise of reliability, safety, and security as a cryptocurrency exchange. It serves a lot of customers simultaneously, making it hard to buy and sell digital currencies in their platform.
Binance
Binance is also one of the leading cryptocurrency exchanges in the world today. It is a newbie as an exchange but skyrocketed quickly because it is accessible from different devices, having an Android application and fully functional official website. It offers safe, secured and reliable transactions between traders and also supports a variety of cryptocurrencies such as Bitcoin, Litecoin, Ethereum and other altcoins. It is desirable in terms of charging fees because there is only a 0.1% trading fee and customer deposit is free.
