Factors You Need To Notice While Referring A Cryptocurrency Exchange

To trade digital currencies, you need a medium or a platform, known as a cryptocurrency exchange. With the massive growth of cryptocurrency and blockchain around the years, there have been an array of cryptocurrency exchanges, including the top ones, like Binance, Coinbase, Gemini, GDAX, and more. You can even trade cryptocurrencies in India, on Indian exchanges like WazirX, CoinSwitch, CoinDCX, Unocoin, and ZebPay. 

Other than gaining knowledge on the price status of digital currencies, Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Neo, Tron, Tether, and many more, People are also inquisitive in knowing about Kraken vs Bitfinex, to know which exchange is better. However, every cryptocurrency exchange has its specialty, and each has its own merits and demerits. 

If you are new to the crypto world, then you need to know about the factors that need to be noticed while joining a particular exchange for crypto trading. But before leaping to our main subject, let me brief you about what is a cryptocurrency exchange. 

Defining Cryptocurrency Exchange

A cryptocurrency exchange can be defined as an online website, where exchanging, selling, and buying of digital currencies for government-issued currencies, also called fiat currencies, takes place. People who want to practice trading on the professional front, have to open their account on a cryptocurrency exchange, which will ask for id verification. However, there are also platforms where there is no need for account opening, especially if someone wants to go for simple trading, or occasionally.  

Different Forms Of Crypto Exchanges

After getting a brief knowledge about the cryptocurrency exchange, now let me introduce you to its 3 different forms. 

Exchange Platform Dealing In Trading

These crypto trading sites act as a link between those who want to buy and those who are intended to sell. A fee is applicable for every transaction. 

Straightforward Trading

In this type of crypto trading site, trading is done directly between the two individuals from their respective countries. It is all done by using the registered account from any bank. An important fact regarding this type of trading is there is no stable market price. The exchange rate is set by the seller.

Broker Site

In these sites, brokers set the price of a cryptocurrency. Anyone who seems interested in buying it can visit the site. These brokers are akin to the dealers who deal in foreign exchange.

What To Notice While Referring to A Cryptocurrency Exchange?

There are certain things that you should be noticing while referring to a particular cryptocurrency exchange. Before making any hasty decision, and repenting it later, it is better to do some research before stepping in for trading. Below are some of those important factors to look for:

Stature

The first one to search is the stature of the cryptocurrency exchange through reviews. Count upon the positive feedback from the users who have experienced exploring it. There might be some who would give thumbs down. 

But if the ratio of positive reviews exceeds those of negative views, then a crypto site is worth to be considered. Forums like BitcoinTalk can also be referred for asking your queries. 

Fee Applied On Trading

Many cryptocurrency exchanges generally put on the information related to trading fees. So before referring to a crypto trading site, be smart enough to accumulate knowledge of fees related to transaction, withdrawal, and deposit. There is no uniformity in the fees. It all depends upon which exchange you are referring to. 

Availability Of Paying Procedure

Another important factor to note is the availability of paying procedure on any cryptocurrency exchange. Find out whether it supports the use of credit cards, debit cards, or wire transfers via your registered account of any bank. 

You can also find out whether it is supportive to pay through PayPal, and does it allow trading with fiat currencies. Don’t refer to any exchange where payment options are limited. It won’t suit you for trading. 

Asking For Verification

Most of the cryptocurrency exchanges dealing in Bitcoin trading ask for identity checking, especially for the tasks related to withdrawing and depositing. Some exchanges enable you to follow anonymity. 

The checking process might be time-consuming and indeed seem irritating, however, it is beneficial for an exchange for its protection against notorious activities like money laundering, as well as scams too. 

Conclusion

So these are some of the pivotal factors that you need to be noticing before joining a cryptocurrency exchange. Well, apart from all these points, there are other factors like 

regional access to the exchange and exchange rates that vary to different exchanges. Whenever you are searching for an exchange, emphasize its stature through reviews, and other industrial websites. 

There is no mandatory limitation to apply for a single exchange, you can explore other options also. If you are interested in knowing about the updates of any exchange, digital currency, crypto technology, then better flock on to the Cryptoknowmics, one of the best Tradingview indicators.

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