Cryptocurrency Exchange or Digital Currency Exchange is a business that involves exchanging cryptocurrency for other assets, such as money or any other digital currency. It is a web service that offers electronic transactions in electronic forms and takes fees for them.
Any transaction or operation for digital currency exchange can be done by debit and credit cards, postal receipt or any other form of money transfer. This article discusses crypto exchanges that facilitate cryptocurrency trading for beginners and what they offer in terms of availability, ease of use, security, deposit/withdrawal methods, and fees. We hope this guide to cryptocurrency trading can help you get started with cryptocurrency exchanges.
Coinbase is one of the largest cryptocurrency exchanges based in San Francisco, California. It is available in 32 countries and currently serves more than 10 million customers. Launched in 2012, it has an easy-to-use interface that makes Digital Currency Exchange an easy task for a non-technical person. It is also available for iOS and Android. Unfortunately, Coinbase does not offer cryptocurrency mining for beginners and is only an exchange.
So far, it offers four coins, Bitcoin, Bitcoin Cash, Ethereum and Litecoin. It exchanges digital currency with US Dollars, Euros and Great British Pounds. With minimal transfer fees, Coinbase has never experienced a security breach, making it the perfect digital currency exchange platform. In addition, Coinbase also offers a fully advanced exchange called GDAX. It offers more advanced features and different and better trading fees than Coinbase.
Bitstamp is another platform that offers digital currency exchange. It is quite easy to use and offers more advanced features through TradeView. Bitstamp offers coins like Bitcoin, Litecoin, Ethereum, Bitcoin Cash and ripple. It exchanges digital currency with US dollars and Euros. In this exchange you can practice all the latest techniques of cryptocurrency trading.
It offers flat deposits via bank transfer and accepts debit/credit cards. Perhaps the only drawback that can be found in Bitstamp is the slightly high fee and the fact that it has suffered a security breach in its 7 years of operation. However, it is one of the most reliable exchanges. It is available on both iOS and Android.
Gemini is a UK company, launched in 2015 by the Winklevoss twins. It is available in a few countries, including the US, Canada, Hong-Kong, Singapore and South Korea. One of the downsides of this platform is that it is not particularly user-friendly. So beginners are not advised to use this platform.
It offers two coins and 1 FLAT currency Bitcoin Cash, Ehtereum and US Dollars. Gemini follows strict protocols when it comes to security and as of 2018, has not encountered a single security breach, thus becoming one of the most secure and trusted digital currency platforms. However, it is important to have digital currency investment strategies before you start trading.
Digital ticks is a modern crypto exchange that aims to be a game changer in this sector. They have implemented many latest techniques which makes it easy for anyone to start trading.
It has a unique feature called Single Portfolio View that will allow traders to view all positions in a single portfolio. It would be easy for traders to make informed decisions about cryptocurrency trading using this unique feature. It also supports Bitcoin, Ethereum, Litecoin and Dashcoin.
Kraken is one of the oldest cryptocurrency exchange platforms. Launched in 2011, kraken is the largest exchange in terms of volume and liquidity among euro trading pairs. Valid worldwide including the US.
Kraken offers a variety of coins including Bitcoin Cash, Ethereum, Monero, Augur, Litecoin and many more. It also supports deposits/withdrawals via bank transfer and cryptocurrency. With a less friendly user interface, it also suffers from stability and performance issues, but it is still a good platform for cryptocurrency exchanges.
Bitfinex is the largest cryptocurrency exchange platform. Launched in 2012, it has an easy-to-use interface and offers advanced features such as margin trading, margin financing, etc. It is available for both iOS and Android platforms. It offers BTC, BCH, ETH, LTC, IOTA, XMR and NEO.
Like previous cryptocurrency exchanges, it accepts withdrawals using US dollars and euros via bank transfer. Bitfinex has suffered two security breaches, the first of which was in May 2015, which resulted in losses of $330,000. And the second resulted in losses of $72 million in August 2016.
EtherDelta is a decentralized exchange that directly supports peer to peer connection. It is very different from the previously discussed cryptocurrency exchange platform. Here, funds are stored in a smart contract on the Ethereum network, which you are solely responsible for depositing and withdrawing. Currently, EtherDelta only supports Ehtereum based tokens.
EtherDelta has a rather confusing interface which makes it difficult for users to perform cryptocurrency exchange operations. Once, someone tried to buy 750 Kyber for 0.007 ETH each, but ended up buying 0.007 KNC for 750 ETH.
After looking at different cryptocurrency exchange platforms, we can safely say that Coinbase and Bitstamp stand out for their good features like security, friendly user interface, multiple withdrawal/transfer methods and much more.
I wouldn’t call them perfect, but I’d recommend them as the safest bet you can make. Each cryptocurrency exchange platform is unique in its own way and has advantages and disadvantages. All we have to do is select the one that suits our needs. We hope this guide to basic cryptocurrency exchange and trading will kickstart your Cryptocurrency trading journey.