Do you know what is Cryptocurrency, how is it exchanged and what are the best cryptocurrency exchange? Not aware? Let me help you with that. Let’s understand this step by step. First of all, the thing you need to know is what is cryptocurrency? Cryptocurrency is nothing but a medium of exchange. Blockchain, world’s leading software platform for digital assets stores this medium of exchange within constantly developing technology, building radically better financial system. This technology depends on the encryption technique for controlling the monetary units. Bitcoin is an example of this currency.
In the layman’s term, if ‘A give 2 bitcoin to B’ and is signed by A’s private key, this becomes a public key cryptography. This pact is then broadcasted in the blockchain by miners and in turn, these miners are rewarded with some form of cryptocurrency like Bitcoins.
Once you have accumulated the cryptocurrency, the next step is to exchange the acquired cryptocurrency. Many online platforms provide the exchange for your cryptocurrency. You can exchange this cryptocurrency like a stock exchange or simply like a currency exchange.
Few of the best cryptocurrency exchange types in vogue are:
This exchange works in line with stock exchanges. Here buyers and sellers exchange their cryptocurrency at the current market price. The platforms which provide such an exchange levy some fee for each transaction. One can even convert fiat currency into cryptocurrency. In the light of these characteristics, GDAX is a good example of this type of exchange.
This exchange is a peer-to-peer exchange. It involves direct trading between buyers and sellers. Equally, an important attribute is its non-dependency on current market price. It is the seller who plays the pivotal role in this exchange and sets the exchange rate.
How do you exchange money on the airport? Similar to such experience, these are website based exchanges and the exchange is made at a price set by a broker (middlemen). Coinbase is a superb example of this exchange.
In the same fashion of all other funds across the world, Cryptocurrency funds are also professionally managed. These managed cryptocurrency funds allow the public to buy or sell the cryptocurrency using this fund. GBTC is one such fund.
Whatever be your cryptocurrency, be it Bitcoin, Litecoin or Ethereum, you can always find an exchanger for that. But you need to deliberately think about a number of parameters depending on your need before making any exchange. Of course, few relevant points to be considered beforehand are:
- How safe is the server
- High Liquidity
- Customer satisfaction with the exchanger and user ratings
- Buying options support like PayPal etc
- Currencies options for trading cryptocurrency
- Transaction charges or fee.
If you have taken all of this into consideration, its time to choose the best cryptocurrency exchange for you.
List of some of the world’s best cryptocurrency exchange in the market
Bittrex is a US-based exchange. It offers exchanges of tokens, newer coins, and cryptocurrencies. Additionally, Bittrex supports more than 190 cryptocurrencies. Furthermore, if you opt for this exchange, you will get higher stability and speedy exchanges. It very powerfully embeds risk management practices in its working. Being secure, this exchange is one of the most reliable and secure.
With Android and iOS, Coinbase, founded in 2012 in California has its own associated wallet. Especially relevant, this exchange platform allows recurring purchases very easy. Coinbase is one of the best exchange for many cryptocurrencies like Ethereum, Litecoin, and Bitcoin.
BitFinex is one of the largest bitcoin trading platforms in the current market. Headquartered in Hong Kong, on this platform, you can make fast transactions between various cryptocurrencies like Litecoin, Ripple Monero, Zcash, lota, Bitcoin, Ethereum etc. As regards the security, this platform is very secure and offers leverage trading and margin funding. While being popular, this was once affected by hackers.
Kraken is one of the highly reliable in addition to being largely popular. Headquartered in San Francisco, it operates in a high-security environment, supporting all the good features of any good trading platform like low fee, high liquidity, margin trading facility and fast funding. An occasional downtime problem is the only pull down for Kraken.
This platform, unlike other platforms, does not require initial cryptocurrency and allows transactions with normal cash. Headquartered in the Virgin Islands., CoinMama is actively workable and used in around 200 plus countries providing a very smooth platform which is loved across the whole world.
Choose & build your wealth
Try any of these exchanges according to your needs. Find out the best one for you and go for it. As a matter of fact, the list can be long which keeps on growing. Not to mention, share your knowledge and experience of other best cryptocurrency exchange options in the comments!