Crypto exchange are an important part of the digital currency ecosystem. These are the platforms many users use at the beginning of their journey in the cryptosphere. Cryptocurrency exchanges are used to exchange fiat money into crypto and vice versa, or to convert one cryptocurrency into another. If compared to exchanging directly between users or using exchangers, Bitcoin exchanges allow you to view all buy/sell offers and put up a value on your own in search of a counter offer. Such exchanges charge a transaction fee, which makes up their earnings.
What are cryptocurrency exchanges?
In addition to the classic functionality to convert currencies, most of the major services offer other features. For example, you can use crypto-deposit, getting interest for it, lend assets against crypto, trade on different crypto-exchanges and earn on the difference in rates. Basically, a cryptocurrency exchange can be of two types:
- Centralized.
- Decentralized.
The latter can also include P2P-platforms, which operate on the principle of peer-to-peer, when transactions take place directly between users. In their functionality they resemble marketplaces, where participants are connected to each other at a specified price. You negotiate all the terms of the transaction yourself.
If you need, for example, Bitcoin, a centralized exchange is the best and easiest option to enter the crypto market. Such platforms are loyal to beginners and allow you to buy cryptocurrency for fiat, including hryvnias.
How to start trading on a cryptocurrency exchange?
To get started, you need to follow a few simple steps. First, find a reliable and safe platform. While choosing, evaluate services based on a set of criteria. When considering a crypto exchange, the security indicator and the jurisdiction in which it operates deserve special attention. Resources that offer access to the maximum selection of assets are also considered preferable.
Next, you need to register with the exchange and verify if necessary. Be sure to set up two-factor authentication to further secure your account. After that, fund your account. Fiat or digital currencies can be used for this. The last step is to get familiar with the interface of the platform, after which you can buy Bitcoin or other crypto on the exchange and move directly to trading.
Please note that no service can guarantee 100% protection of funds. All networks and computers can be hacked, the only question is how long it will take. Those funds that you plan to keep for the long term are best sent to a cold wallet. Some assets can be left for active trading. Some of the safest and most reliable crypto exchanges are Binance and WhiteBIT.
