Many have invested in Crypto and many are still investing in cryptocurrencies. And you can't say you want to deal with cryptocurrencies without knowing which exchange platform is best for your operations.
That is why in this article, we have brought to you the best cryptocurrency exchange platforms that you can use to exchange cryptocurrency.
What is a Cryptocurrency exchange platform?
The first question to be asked for most will be what a cryptocurrency exchange platform is. A cryptocurrency exchange platform is a digital platform where you can convert currency like U.S. dollars into other cryptocurrencies like bitcoin and many others. A cryptocurrency exchange is simply a platform for matching buyers and sellers. They work in a similar way to exchanges for other assets, like stocks.
People tend to refer to those who use them as ‘traders’ because they often buy and sell on a short time frame. Traditionally, an investor is someone who holds their investment for a longer time frame.
Exchanges tend to charge a small fee, usually a percentage known as a ‘volume-based fee.’ There may be a currency conversion fee if you deposit a currency not accepted by the exchange.
An exchange is not the same as a wallet, which is a place mainly used for digital storage of your cryptocurrencies. Some platforms, including Binance, provide both. Others don’t, which means traders need to transfer their cryptocurrency elsewhere before being able to effectuate their transactions easily.
How Does a Crypto Exchanges Work?
Crypto exchanges connect buyers and sellers and act as a middleman, or a broker, in some cases. When you buy any cryptocurrency using a crypto wallet, the transaction is recorded on the Bitcoin Blockchain, which publicly tracks bitcoin-based transactions. In some cases, exchanges may transact on your behalf and not deliver bitcoin to an external digital wallet.
What Are Some Differences Between Crypto Exchanges and Wallets?
Crypto exchanges are a place or platform you can buy and sell cryptocurrencies. In many cases, the exchange also includes a wallet, which is the “account” that holds your cryptocurrency. When you use a centralized exchange online or through a mobile app, the exchange will effectively hold the bitcoin on your behalf.
Cryptocurrencies also enables you to use external wallets outside of an exchange. These include computer-based and web-based “hot wallets” and offline “cold wallets” that work kind of like a USB security fob. If you buy bitcoin for example at most exchanges, you have the option to transfer your coins to any bitcoin wallet.
Is Buying Cryptocurrencies Safe?
Buying Crypto is safe whenever you use a good and respected platform. It’s important to research any platform where you’re considering purchasing Crypto before you decide to take the plunge. In terms of Crypto being a safe investment, the value fluctuates more frequently than many other traditional investments.
If you’re looking to support a decentralized method of making payments, cryptocurrencies can be valuable. However, there’s no guarantee or insurance protecting any value of what you're purchasing.
How Can I Buy A Cryptocurrency?
If you’re looking to buy a cryptocurrency, follow these steps to get started( Bitcoin as an example):
Pick an exchange and wallet provider: The first step is to pick a place to buy and store your bitcoin. The easiest and fastest way to start is to choose an exchange that also offers a secured storage.
Open an account: Once you’ve picked your favorite exchange, you will most likely need to open an account and supply basic personal information. Some decentralized exchanges don’t require an account, but you’ll need an existing wallet and more technical know how to use this type of exchange.
Fund your account: If you choose a provider that allows you to deposit fiat currency (USD, EUR, GBP, etc.), you’ll probably have to fund your account before you can make an order. You may be able to buy right away with a debit or credit card, but beware of extra fees and fake transactions.
Place an order: Now it’s time for the big moment. Place your order and wait for it to fully execute. Because blockchain processing takes some time, your purchase may not be instant. There are many factors that can lead this to take anywhere from a few minutes to over an hour to complete.
Once your order is done, you should see your new bitcoin in your bitcoin wallet or account.
How We Chose the Best Places to Buy and what are the best places to buy cryptocurrencies;
We looked at more than a dozen of the best places to buy and sell Crypto online and settled on the top six places based on a number of factors. These factors included the security the platform provides, customer reviews, the fees each charge, the strength of features for each digital wallet, and the speed at which you can buy Bitcoin.
Best Australian Crypto Exchange
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These best platforms come as follows
Best overall, low fees - Binance (or BinanceUS for US residents):
Binance is considered a safe exchange that allows user account protection via the use of Two Factor Authentication (2fa). On May 7, 2019, Binance experienced a major hack which resulted in 7000 Bitcoins stolen from the exchange and that caused them to implement the 2way Factor Authentication.
It is a centralized exchange but a reliable one because despite handling the volume it does on a regular basis, there have been no reports of it or going down.
Best for beginners - Coinbase:
Coinbase is widely considered to be one of the most reliable and legitimate cryptocurrency exchange platforms on the internet. Why We Chose It: If you are brand new to the world of bitcoin and cryptocurrency, Coinbase is an excellent place to start due to support for a number of popular cryptocurrencies, a strong security track record, and reasonable fees. Coinbase is a large cryptocurrency wallet provider and exchange.
Best customer service - Kraken:
In a nutshell, Kraken is a secure, trustworthy crypto exchange platform, that allows trades between several fiat currencies and crypto tokens. When compared to other exchanges, Kraken is one of the best choices for trustworthiness due to the fact that they have a very good and responsive customer service.
Simple brokerage service for popular coins - Coinmama:
The platform was established to create the simplest financial service in the. Coinmama offers a wide range of crypto that are amongst the most popular and about brokers, exchanges and other entities trading in such instruments.
Many might ask if Coinmama is worth it a choice, the short answer is yes. Coinmama is a reputable company and their support is pretty good. Their only downside, in my opinion, is the high fees. Unfortunately, this can't be avoided when using a credit card, but considering the prompt service it's sometimes worth the cost.
No ID required- Bisq:
Bisq does not come first as a choice but don't put it all down. The server itself does not have access to users' funds, meaning hackers cannot access any money either, which would be a lost cause for them.
All of this combined, Bisq is extremely secure due to its decentralized nature and users can trade on the platform without any worry. Might think that because ID's are not required is a reason for no security but they made the platform secured against Scammers and intruders.
Attractive trading volumes - Bittrex:
Although Bittrex can be considered an excellent exchange for beginners and traders looking for a robust, secure platform on which to trade multiple cryptocurrencies, its lack of customer support and freezing of accounts make it a questionable choice.
Strong security features - Gemini:
Gemini is a U.S.-based company with FDIC protection for USD and has never been hacked (that we're aware of as of publication). It's a straightforward platform that is easy to use and puts security at the highest level. And is considered as the most secured platform amongst all platforms. So if you need a secured platform, this is the best platform for you.
Conclusions and Closing Remarks on the Best Cryptocurrency Exchange platform
In conclusion, we have shown you above the best crypto exchange platforms where you can exchange your crypto currencies. We have also shown you what you should expect in a crypto exchange platform and how to search for the best crypto exchange.
Visit some of our most visited articles using any of the links below, and not only that, you can also get updated with all our articles and request some things to be done in our telegram channel using the telegram link below.
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