Cryptocurrency exchange – a door to the market

Cryptocurrency exchange – a door to the market

Cryptocurrency exchange – a door to the market

Cryptocurrency market is the hottest place for traders right now, thanks to its extreme volatility and chances of getting high revenue. That’s why more and more traders are entering it on a daily basis. However, in order to get your crypto coins, you’ll have to register your free trading account at a cryptocurrency exchange. Much like with CFD and Forex exchanges, they enable you to swap your fiat currencies for cryptocurrencies for a fixed or variable price. However, there are some things that you should check out prior to registering. That’s why we’ve written this overview of cryptoexchange basics, which will cover the process of account registration and trading, as well as give you some remarks about which features to consider when choosing your exchange. Keep on reading and educate yourself before you make your first market move!

Cryptocurrency exchange | How to register

Before you can start trading on a cryptocurrency exchange, you’ll have to open up a trading account. The procedure is fairly common regardless of the chosen exchange. Upon landing on the registration page, you’ll be asked to input some personal information, such as full name, email address, phone number and account password. Furthermore, you might be requested to submit some copies of personal documents, such as a valid photo ID in order to verify your identity. After submitting the registration form, you’ll receive a confirmation e-mail in a matter of minutes with activation link present. Clicking on it will activate your trading account and you’ll be ready to start trading. However, prior to depositing your funds, it’s advised to turn on some additional security measures. You can change your password to a more complex one, activate two-factor authentication, IP address tracker that will restrict login attempts from unknown devices and such. Remember, security is the most vital aspect in trading, so we recommend you to put some extra effort in order to make your account the safest possible. Now let’s see just what you can do on a crypto exchange. Keep on reading!

Cryptocurrency Exchange | Trading possibilities

After you get your account verified and activated, the first thing you want to do is make your initial deposit. Unlike typical Forex exchanges, crypto exchanges usually don’t have any restrictions regarding the minimum or maximum deposit amount, so you’re free to deposit as much as you like. As for deposit methods, all exchanges usually utilize at least one widespread money transaction method, such as credit card deposit or bank wire transaction. Also, you can send your existing cryptocurrency from your wallet to the exchange’s wallet, but only if that currency is supported – otherwise, sending your crypto funds to the wrong address might result in permanent loss of funds. The sole trading principle bears much resemblance to the regular stock exchange – you either buy or sell cryptos for other cryptos or supported fiat currencies (usually USD) for a market-determined price, or you can set your desired price. To put it differently, you can execute trades instantly or set buy/sell orders that will trigger when the asset price reaches the specified number. You can view order books for each cryptocurrency separately, copy existing trades, view your opened and completed trades, as well as utilize analytical tools present on the price graphs to conduct technical analysis. Also, you can withdraw funds more conveniently than with regular brokers – just send them to your wallet’s public address and that’s it. As you can see, trading cryptocurrencies is in fact not much different than trading regular assets such as stocks, commodities or futures on a regular exchange. However, there are some specific features you’ll want to check before opening your trading account. Keep on reading and learn how to recognize high-quality and trusted cryptocurrency exchange among hundreds of active ones!

Cryptocurrency Exchange | Key features to look out for

All exchanges have more or less identical functionality, but there are some differences between them. It is vital to do a thorough research of every exchange you are considered to trade on, since there are currently some regulation issues on a global scale. The main reason is that some new concepts brought by the rising popularity of cryptocurrencies, particularly ICOs still don’t have any law that could monitor their behavior in many countries, resulting in many scammers trying to steal their investors’ funds. Here we’ll analyze what you have to check prior to registering.

First of all, check the reputation of the desired exchange. Although it can look great and boast some unique offers, it might just been recently hacked, but you don’t know a thing about it. The best way to do a background check is by reading the opinions and news posted by other traders. Check out the threads on various forums, most notably BitcoinTalk or dedicated Reddit channels, where new information regarding crypto world are being published constantly. Furthermore, check out if the exchange has a dedicated section for transaction and trading fees. All transactions to and from exchange, as well as trade orders carry a small percentage of the total amount as a service fee, but it should be clearly stated somewhere. If it isn’t, your trading journey might just end up being more expensive than you initially thought. Next, find the list of available currency pairs for each exchange considered. Usually, most of the altcoins are paired only with Bitcoin, while fiat currencies can be swapped only for top ten cryptos. Let’s say that you want to swap your Ethereum for Litecoins – if ETH/LTC pair is not present on your exchange, you’ll have to first trade ETH for BTC, then buy Litecoins with your newly bought BTC, which means paying two transaction fees. Find the exchange that has the most suitable pairs for your needs. Exchange rates are extremely important as well, as they are not fixed and they depend on the exchange you’re trading on. For instance, price of Bitcoin might be significantly higher on an exchange that has more volume of BTC traded. Also, be sure that your exchange has implemented multiple layers of security to your account. Check if you can verify your account via photo or phone, enable additional authentication methods, set a complex passphrase, receive an e-mail for approval for every login attempt and such. Furthermore, keep your device clean of malicious software and untrusted applications, as they might be hiding some infectious code that could steal your login data or even take control of your account. Finally, check for some advanced trading options, such as margin trading or leverage options. Generally, exchange that offers a bit more than others will surely give you significant trading advantage. That’s pretty much it – search for your ideal exchange by following these steps, and you’ll be completely safe. But before we wrap this article up, let’s see which major exchanges we can recommend!

Cryptocurrency Exchange | Recommendations

After we’ve made this analysis, it’s time to give some recommendations regarding best cryptocurrency exchanges. Honestly, we believe that the best thing is not to look for new ones, but stick with the trusted ones that have been present on the market for some time now. However, you should also consider exchanges that fulfill most, if not all of your trading requirements. Given that, we can always recommend exchanges like Bittrex, Bitfinex, Coinbase and Bitstamp if you’re going for a more classic approach to buying cryptos. On the other hand, if you’re looking for a simple exchange without the intermediary in a form of trading market, consider using Shapeshift or Changelly, which will enable you to directly convert your cryptos for a fixed fee. We’ll be discussing them a bit more in upcoming articles, and with these recommendations, we’ll be concluding this article.

Cryptocurrency Exchange | Conclusion

The exciting world of cryptocurrency bears exciting cryptocurrency exchanges as well. However, due to the fact that the market is still fairly young, very unregulated and dynamic, it is highly recommended to give an extra effort to keep your funds safe. If you do it right, your cryptos will remain intact and unaffected by any potential breach, leaving you with a safe trading environment. It might be different to choose your perfect exchange among hundreds of present ones, but by following our advice you’ll surely find the right one. However, be sure to keep reading our coming articles, as we’ll be discussing even more popular subjects regarding brand-new blockchain technologies and currencies. Trade smart and safely!

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Author: Ben Prescott
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