Let me guess—you want to buy some crypto, but you’re not sure where to start. Well, there are many different types of exchanges out there, and some are better than others. In this post we’ll cover everything you need to know about choosing the right exchange for your needs!
- What are the different types of cryptocurrency exchanges?
- How to choose an exchange based on your trading needs
- Security is key
- Check what cryptocurrencies the exchange supports
- Fees can vary wildly, so compare before you buy
- The cryptocurrency market is volatile and constantly changing. If you know what you’re doing, it’s worth checking out some of the best cryptocurrency exchanges.
What are the different types of cryptocurrency exchanges?
There are two main types of cryptocurrency exchanges: centralized and decentralized.
Centralized exchanges are generally thought to be safer and more secure than decentralized ones. This is because they’re overseen by a central authority that can intervene if there’s any trouble on the platform or if you want to make a withdrawal or deposit. They also offer more payment options, such as credit card payments and wire transfers, which don’t always apply at decentralized exchanges (DEXes).
On the flip side, DEXes like Uniswap and Curve tend to have lower fees and faster transactions due to their peer-to-peer nature, though some centralized competitors have been able to compete with them in this regard too. Other benefits include trustless custody (you hold your own money) and no need for KYC/AML checks before trading on the platform.
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How to choose an exchange based on your trading needs
When choosing a crypto exchange, it’s important to consider your trading needs. For example, if you have coins in your wallet and want to buy more at the best price possible, look for an exchange with low fees and no limits on how much of a particular coin you can purchase. If you plan on making frequent purchases of small amounts of different coins over time (for example, buying gas for your car), an exchange that has high limits might be best suited to keep costs down while still allowing you access to all the coins they offer.
If you’re new to cryptocurrency or just want something simple and easy-to-use, check out our top recommendations below:
- Binance: The most popular centralized cryptocurrency exchange in terms of volume (by far). It offers a mobile app for iOS and Android devices as well as web-based trading via its website (binance.com). You can use Binance without creating an account, but signing up for one allows you access to additional features such as margin trading and lending services (although these will cost extra). There are also withdrawal fees charged by certain coins, which typically range from 0%–2%.
- VALR: A cryptocurrency platform founded in South Africa, is gaining traction across the African continent. Supported cryptocurrencies include Bitcoin, Ethereum, Ripple, Ethereum Classic, and Bitcoin Cash. When it comes to purchasing and selling, the exchange has dozens of cryptos in its portfolio. For exchange, purchase, or sell, VALR charges 0.1% for takers and 0.01% for makers (for example, you may get paid to trade). Every deal incurs a 0.75% trading fee for basic buying and selling. Handling costs, fiat currency deposits, cryptocurrency deposits, and monthly charges are all free from transactional or trading fees.
Security is key
One of the most important things you can do to protect your cryptocurrency is to choose a trusted exchange. Not only do you want an exchange that is well-established and has been around since the beginning of cryptocurrency, but also one with a good track record and strong security features.
Another thing to look for in an exchange are features like two-factor authentication (2FA), which requires users to input both their username/password as well as a randomly generated code from a separate device before being able to log in. This makes it more difficult for hackers who have access only to your username/password combo without 2FA enabled because now they will need both pieces of information—your username/password combination along with your mobile device—to get into your account on an unsecured computer or browser without triggering some sort of alert that allows you time enough to change all of these details immediately (and hopefully prevent any damage from happening).
Also consider using password managers like LastPass or 1Password if they’re available on the platform where you’ll be storing all these new passwords; this way there will only be one master file containing all those different combinations needed across multiple sites instead of having everything written down somewhere where someone else could find it easily through simple guessing techniques.
Check what cryptocurrencies the exchange supports
- Check if the exchange supports your desired cryptocurrency.
- Check if the exchange supports fiat currency (e.g., USD, ZAR).
- Check if the exchange supports your desired payment method (e.g., Visa).
- Look at a few crypto exchanges’ reputations and go with ones that are reputable and have been around for a while.
- Find out if the exchange is regulated by a government or financial institution, as this can give you reassurance that they are legitimate and safe to use.
Fees can vary wildly, so compare before you buy
Fees can vary wildly, so compare before you buy. Fees are charged by the exchange and are typically a percentage of the total trade amount. The more volume that’s traded on an exchange, the lower the fees tend to be. If you’re trading small amounts or just getting started with crypto investing, this may not matter as much to you—but if you’re looking for maximum value in your investments, then it will matter a great deal!
To make matters worse, different exchanges have different fee structures; some charge fees based on your overall total purchase, while others charge per transaction (like PayPal) or as a percentage of each individual trade (like Robinhood). In some cases, these fees can add up quickly, so it pays off to do your homework ahead of time before committing any money into an exchange wallet account or purchasing coins with fiat currency such as USD or GBP
The cryptocurrency market is volatile and constantly changing. If you know what you’re doing, it’s worth checking out some of the best cryptocurrency exchanges.
Cryptocurrency is a new form of currency created in 2009 that is not controlled by any government or central bank. Cryptocurrencies are used to maintain anonymity while transacting on the internet. They can be bought and sold through exchanges, which convert them into other forms of money such as US dollars or euros. There are many different types of cryptocurrencies available today, but the most popular (by market cap) include Bitcoin (BTC), Ethereum (ETH), XRP/Ripple (XRP) and Litecoin (LTC).
Blockchain technology was invented by Satoshi Nakamoto in 2008 as part of the development for bitcoin, but it has since been repurposed to work with other currencies as well—including ETH, BTC and XRP/Ripple.
In conclusion, cryptocurrency exchanges are an important part of the cryptocurrency ecosystem. They allow you to buy and sell cryptocurrencies easily and securely without having to go through too much hassle. If you’re looking to invest in crypto, it’s worth checking out some of these exchanges to see which ones best fit your needs.