Cryptocurrency exchanges are websites which give you the possibility to buy, sell or exchange cryptocurrencies for traditional currency like US dollars or Euro or for another cryptocurrency. To put it simply, an exchange is where buyers and sellers cooperate with each other and run their businesses. For instance, a seller of BTC deposits BTC with exchange’s address. He can then use his positive BTC balance in the exchange to sell his BTC for Dollars (or other coins). Similarly, a buyer of BTC deposits USD with the exchange and then uses the balance to buy BTC from a seller. Real exchanges are really just a medium between traders.
What should you consider when picking the Cryptocurrency exchange
Here are some small tips which will help you to pick to choose the exchange which suits you best.
Fees – almost all exchanges charge fees for you to do business with them. Make sure to investigate as much as you can about the fees and transactions cost of the specific exchange. The more secure exchanges will charge higher fees. For instance, Coinbase charges up to 4 percent fee for all transactions, while less secure exchanges may charge only 0.2 percent.
Region – You need to search for a suitable exchange for your location. If you are from the United States, it would be reasonable to look for an exchange located in US. Make sure that you checked the address of the company, if you can’t find one anywhere on their webpage it should be a red flag. You need to understand, that in an emergency case, for instance, if someone hacked your account, it would be difficult for you to even find the right jurisdiction to complain in case if you don’t know where your exchange is situated.
Reputation – A simple search on google will help you to find out which cryptocurrency exchanges are considered the best nowadays. I recommend you to check out Coinbase. Coinbase is one of the most reliable exchanges on the entire market. The platform provides its services to more than 32 countries in the world and has more than 4 million registered users. In order to start with Coinbase, you will have to create an e-wallet for buying and selling cryptocurrencies. Another option which might interest you is Binance. Binance is a newer exchange but it has already earned reputation of the respected platform. It has a wide range of cryptocurrencies available to purchase and sell. Their fees are very reasonable and it will allow you to register quickly without additional verification.
Security – You should be prepared that most exchanges will ask you to verify your identity. In most cases it is done in the form of a passport, driver’s license, address proof or other similar documents before joining. This procedure is called “know your customers” and it is necessary to ensure the protection and safety of your account.
Remember that no one limits you to use only one exchange. You are free to try several and find out which one is the most suitable for you. We hope this guide will be useful to you in your journey towards financial success.