Cryptocurrency has been one of the most talked-about subjects during this past decade. Even since Bitcoin was introduced as a digital currency it made waves at a global level upsetting many established financial norms governed by conventional currency laws.
Many were skeptical as to the success of such a concept but in these past ten years alone, despite widespread skepticism, Bitcoin is worth more than any other currency denomination in the world currently trading at an average of $10,000 per coin.
What Are Crypto Exchanges?
Since bitcoin operates on a decentralized blockchain system much like other cryptocurrencies including Ehterium and Litecoin, regulating it has been a challenge for many governments and world leaders around the world.
You can not simply go into a bank and cash out bitcoin (at least not yet) and that is why the need for crypto exchanges and digital wallets have grown drastically in recent years. Crypto Exchanges allow you to save, trade, share, and exchange cryptocurrency just like any other bank.
Growing competition has led to many of these exchanges offering nominal transaction fees and other features to incentivize users to open up a digital wallet and use their trading platform for the buying and selling of cryptocurrency.
These online exchanges are a safe and secure way to hold, trade and use cryptocurrency providing ease and convenience that make for quick access to funds and instant withdrawals if needed.
The Best Crypto Exchanges, 2019
Cryptocurrency is now being used at a global level and with every passing day, it seems that you can do more and more with the cryptocurrency you have in your digital wallets. Many e-commerce platforms now accept popular cryptocurrencies like BTC, ETH, and LTC to purchase a variety of products and services.
Amongst the most popular crypto exchanges, today is Coinbase that offers an almost stock-market-like trading platform and is good for crypto investors looking to trade currency regularly. Coinbase is also a good beginner platform but does have its own drawbacks such as an intensive screening process and multiple restrictions on where and how you can use your cryptocurrency.
Newer crypto exchanges like Rubix offer a more interactive and social trading experience where users can communicate with gurus of the crypto world using the Rubix Relay to help encrypt messages, voice and video calls. This helps ensure your privacy is respected and you can stay up to date with all the crypto trends and speculations floating in the market.
The decentralized Rubix trading platform is easy to use for beginner crypto traders and offers low transaction fees and a free digital wallet. More advanced features can also be opted for by more seasoned crypto investors and traders.
Kraken is also one of the earlier crypto exchanges like Coinbase and supports many types of cryptocurrencies, unlike other exchanges that just stick to the most popular ones. Kraken is more suited for more seasoned crypto traders as it has a much more robust and complicated trading platform that can be overwhelming for someone new to the crypto world.
Bittrex & Others
Many other crypto exchanges have also recently cropped up that have tried to differentiate themselves from the old-timers like Coinbase and Kraken. Newer trading platforms like Bittrex, Poloniex, Shapeshift and others offer their own unique pros and cons that make them viable options for certain users. Bittrex and Shapeshift for example offer many very low barriers to entry for new coins and thus have a lot more trading options than conventional crypto exchanges.
The Risks Involved In Crypto Trading & Exchanges
Investing in any asset has a certain element of risk associated with it. Many have considered cryptocurrencies as a heavy-risk investment but so far the risk factor has still not been justified. Some of the platforms may be an Electrum scam and get a loss of money. Figures suggest that in the past decade cryptocurrencies have been the most profitable trading commodity especially when it comes to exchanges and has resulted in overnight millionaires in many parts of the world.
Since this technology is relatively new, regulating it has become almost a nightmare for many economic and financial advisors around the world. With hackers and cyber crime growing rapidly the threat and risk of having your digital currency stolen is a very real possibility. Over $4 billion dollars worth of cryptocurrency has been reported lost or stolen ever since its inception in 2019 and this number is likely to grow in the coming years.
This is why it important that you use a crypto exchange that is safe, secure and above all has sound security measures in place to restrict unwarranted access. Firewalls, decentralized blockchain, and bug-free programming are essential to restricting cases of theft and fraud.
What To Look For In A Crypto Exchange
They are several things to consider when choosing a crypto exchange and digital wallet to store your hard-earned cryptocurrency. Factors such as credibility, security, terms and conditions, transaction fees, trading platform, and other features have to be carefully considered before a final decision can be made.
This is an extremely important factor as crypto exchanges today are plentiful with all of them trying to secure a market share in this growing industry. However, not all crypto exchanges are reliable or credible. Checking an online exchange’s community reputation is always a good way to check whether users of a crypto exchange are happy with its service, terms and conditions, as well as overall security.
Most crypto exchanges use a decentralized block-chain interface to govern transactions and store cryptocurrency. The security offered by these exchanges can vary from comprehensive screening and registration processes to encrypted sign-in keys. The more secure exchanges are ones that require personal information and proper authentication before providing access which helps limit duplicate accounts and account hacks.
Features such as low transaction fees, user-friendly interface, smooth trading operation, and other features like social interaction and crypto mining opportunities all offered by various crypto exchanges so finding features that are most important to your needs is a good way to weed out possible options.