The concept behind cryptocurrencies is relatively simple, but when it comes to math and technology it's more complicated. Essentially, a cryptocurrency is a virtual or digital currency that uses cryptography as a means of protection and security for users. We have separated 5 Bitcoin exchanges for beginners.
This security is also used to regulate the creation of additional units, so as not to let the global Cryptocurrency market become a kind of “wild territory”. Cryptocurrencies are not regulated by any government agency. The most popular currency is Bitcoin (BTC), followed by Ethereum (ETH).
We can understand essentially an exchange as an exchange house, in this case it being 'online' as is the case of the vast majority, an 'online' exchange house, simple as such essentially.
Cryptocurrencies can be traded via exchanges, these trades are made on platforms where you can buy or sell Crypto for dollars, euros and currencies in your home country, as well as other digital assets, for example, you can sell ethereum and buy dollars with the sold Ethereum, or you can exchange Ethereum for Bitcoin. These exchanges are a vital part of virtual currency expansion.
There are private, exclusive and operated by invited members only exchanges, as well as those available to the general public. Local exchanges also exist. Some are easier to use than others; some exchanges are flexible that assets can be traded directly through resources such as: chat room, Telegram, among others.
Here are some things you might want to consider before choosing the best Cryptocurrency exchange that suits your trading needs.
Verification and security – This is one of the most important things to understand before starting a trade. Most exchanges require some type of identity verification such as a driver's license, proof of residency, passport or similar document for account verification. The more complex the verification process, the more secure the exchange.
Rates – Most exchanges charge fees for you to trade on their platforms. First, when you're applying for a grant, find out everything about the fees, so you don't regret it.
Reputation – The best exchanges always have ups and downs, however, the general opinion is positive. At best handbags have a solid reputation and have a good reputation among users.
Exchange Rates – Fees are important, you don't want to apply to a Cryptocurrency exchange that charges exorbitant fees for trades and trades.
Geography – It is also important to find a grant that supports your geographic region. Some exchanges may be open to all South American countries, otherwise it is not open to Asian countries.
If you are living in Latin American countries, for example, choose the best platform that supports your region.
Something that is important to keep in mind when choosing a cryptocurrency exchange to do your business and purchases is its security measures. It is well known that many exchanges have been hacked in the past, most notably Mt Gox.
You should know that your funds or coins in a stock exchange are really your property, unless you are relying on someone else to manage your exchange.
Fortunately, there are some basic steps you can take when using an exchange. Most importantly, never store more than you are willing to lose, if you have a significant balance you should withdraw it back to your own wallet and for extra security use a Hardware wallet to secure these funds.
Exchanges should be used for quick purchases of your desired currency or for trading a certain amount.
Another important step to follow is to use all the security options available on the platform, verify that two-factor authentication (2FA) is correctly configured and that you use an application such as Google's authenticator. Do not use the mobile phone messaging option, this is not secure, hackers can take your phone number and gain full access to your account.
LocalBitcoins is a peer-to-peer trade used in most major cities around the world. The general principle behind this platform is that you can find people who live in your area or city and meet them in person to make a deal.
The platform also offers options for purchasing Cryptocurrencies via PayPal, Square, direct bank transfers and many other payment methods. The platform charges a small fee of 1% per transaction in cases where sellers apply their own exchange rate.
In the same way that Uber passengers and drivers are rated, LocalBitcoins applies a rating to every user who uses the platform, and that rating is publicly displayed. Trades first need to go through a deposit process to ensure that no one is a victim of fraud using the platform.
After everything is verified, funds and coins will be transferred between traders. The LocalBitcoins platform receives a 1% commission from sellers.
Binance is a new platform in the market, but with a big growth, with a wide range of Cryptocurrencies available for trading, with a basic and advanced view that you can access with ease.
Your fees are reasonable and allow you to register and trade immediately without an account verification. It is possible to withdraw up to 2 BTC per day without account verification, if you wish to withdraw higher amounts, you will need to do account verification.
Binance platform user rating is now very positive, for ease of use and affordable rates.
CoinMama is a great Bitcoin broker that allows users to purchase coins with their credit or debit cards. The platform issues small fees for transactions, however the limits on how many bitcoins a user can buy are much higher compared to Coinbase.
Users can purchase up to $5.000 of coins per day or up to $20.000 per month. Users need to use the CoinMama platform to set up an account, log in and navigate to the profile page section to fill in personal information.
Once the personal data has been filled in, a page for buying 'bitcoins' opens, after a value of is selected, users will be able to add their preferred payment methods and Bitcoin addresses.
Users will also need to verify their phone number and email address. The platform does not require most users to carry their government-issued ID. After completing the mentioned steps and passing the verification process, users will be able to purchase bitcoins.
CEX.IO is one of the oldest cryptocurrency platforms in the world. Despite being referred to as a cryptocurrency exchange, the CEX.IO platform can only be used with Bitcoins and Ethereum, being the two main trading pairs for currencies.
If you want to buy other currencies, you can use CEX and then a service called Changelly to convert them into many other cryptocurrencies of your choice.
CEX.IO is registered with FINCEN and applies the KYC and AML principles. In other words, users need to fully confirm their identity prior to any dealings with this platform. Currently, the platform supports credit cards, bank transfers.
Since you enter into a negotiation, the platform automatically calculates the transaction price and freezes the exchange rate for 120 seconds. Many users report that there are occasional hidden fees.
CEX.IO has a 7% fee for anything that involves fiat coins, for example, if you purchase $100 in Bitcoins, you will only receive $93 in coins.
Coinbase is one of the most trusted Cryptocurrency platforms in the world, if not the most trusted. It is also the largest digital asset trading platform in the world. The platform supports over 32 countries and has over 5 million active users.
Users are allowed to buy and sell bitcoins using their bank account, credit card, PayPal and other payment methods. To start trading on Coinbase, you will have to set up an electronic wallet to buy and sell cryptocurrencies, in addition, you will need to link a valid bank account to buy bitcoins.
Coinbase has an excellent reputation and is highly respected in the trading community. Most transactions through the platform only have a 1% transaction fee in addition to the fees for the selected payment method.
Just like in CEX, you can only buy a few coins. Bitcoin, Ethereum and Litecoin. You would need to use the Changelly to convert them into other currencies.
Another benefit of registering with Coinbase is that you can use the Coinbase Pro exchange which is managed by the same company. Coinbase Pro enables more advanced trading features such as margin trading and market, limit and stop orders. Coinbase Pro also has lower rates than Coinbase.
Choosing the right cryptocurrency trading platform for your needs can be a difficult and time-consuming process. Remember to pay attention to the fees, reputation, security, verification processes and geographic services that a platform performs. Remember that you are not limited to using just one platform.
I hope the information provided will help you decide which platform suits your needs. We've selected 5 Cryptocurrency platforms that are reliable and easy to use for beginners.