Cryptocurrency exchange is a very popular term now, but do all the present exchange offer good services? Safetrading will help you to distinguish between good and bad exchange, and to choose your Bitcoin exchange to work with.
Step 2. Now you have a deposit (depending on which cryptocurrency you decided to buy).
Step 3. You can start trading!
Everything is effortless, especially if you want to trade with essential tools.
Want to know more?
We can't wait to tell you more as well!
Why Do Traders Need Cryptocurrency Exchange Platforms?
Everyone loves to get money while sitting and doing something on your laptop.
That is why we need exchanges!
There are two ways you can earn money:trading and exchanging.
The trading process is more popular - you just buy a cryptocurrency and wait till it's in profit or, if you want to short it, in the loss.
If you are new in cryptocurrency trading and exchanges for you are like singing for me (ha-ha, it's a pity), you need to use a crypto provider - they will offer you crypto signals and cryptocurrency news as well.
The list of trusted crypto signals providers you can find here.
In the case of trading, the volatility of the market is the reason for profit and loss as well!
For example, Bitcoin - the most valuable and biggest cryptocurrency, since 2013 increased the price by more than 10,000%!
Imagine if you could come back and invest your $100 in 2013… Dreams are good!
But now, because of this hard situation, the Bitcoin price decreased to $5,500 again, and a lot of traders lost the money.
That's why you need to analyze the market before buying the coin.
Don't invest blindly!
If you follow all the advice, you will be able to trade and earn with the help of crypto exchanges!
Now it's time to choose a cryptocurrency exchange platform.
Which one is better?
We will tell you the answer to those questions before.
Custodial VS Non-Custodial Exchanges
Security of your assets is the first thing you care about, right?
Let's talk about custodial exchanges.
They are very dangerous!
Ha-ha, okay, everything is not so serious.
Custodial exchanges keep all the private keys and personal information of its users. If such a Bitcoin exchange is hacked, all the users' data will be in danger.
And non-custodial exchanges are safer. They simply don't hold the private keys on their servers, so the user is the only owner of his information.
Of course, there are a lot of custodial popular exchanges, like Binance or Kraken.
And it doesn't mean that you don't need to use it, but you need to use it carefully.
Centralized VS Decentralized Exchanges
This is an essential part of our review. For you to understand the difference better, we will compare their features.
Centralized exchanges have a bigger trading volume that decentralized ones. According to the statistics, 99% of trades are made on centralized exchanges. Decentralized exchanges have a limited number of tools.
Here everything is good for centralized exchanges as well - they have higher liquidity.
Exchanges of Crypto and Fiat Currencies
Decentralized exchanges allow you to exchange crypto to crypto, but some centralized ones can exchange your crypto to fiat and the other way around.
Here decentralized cryptocurrency exchange platforms win! The risks to be hacked for them are lower, but centralized ones have been through 30 attacks for the past nine years.
Decentralized exchanges are definitely for those who don't want to deal with the government, but centralized exchanges are banned in some countries because of governmental issues.
Centralized exchanges ask users to provide bank details, addresses, etc, but with decentralized ones have a very high level of privacy and anonymity, that is very important!
We talked about it earlier. CCEs have a lot of different tools for margin trading, charts, data, and decentralized ones that have a limited offer of functions.
Regulations are about centralized exchanges, DCEs don't deal with regulators and government.
If you want your account to be safe, it is better to work with centralized exchanges, because the level of insurance there is higher - if something with your funds is wrong, you will have your money back. Decentralized exchanges can't offer the same.
And again, CCEs win! They provide different crypto wallets, cards, etc., and DCEs can't offer the same.
Here everything is equal - this period depends on which Bitcoin exchange you work with.
So, as you can see, it is challenging to make a choice.
To choose an exchange you need, you have to set your own goals and wishes.
How to Choose the Best Cryptocurrency Exchange?
And now it is the right time to talk about how to choose a good crypto exchange, which will satisfy all your needs.
What will help you to distinguish between good and bad exchange?
Let's go through the most important ones.
Of course, the best way to know about something is to read the reviews of other users and websites.
So if you want to know about the particular exchange, go and read the thoughts of other people!
Before trading, go through cryptocurrency exchange rates for deposits, withdrawals, exchanging, etc., to be sure you are okay with them.
Check if it is possible to pay via PayPal, credit, or debit cards because if the exchange doesn't provide ways of payment you want to use, it is better to choose another one.
You need to know that most cryptocurrency exchanges require ID verification.
If you want to stay anonymous, choose an exchange that doesn't require the things mentioned above.
The hardest point.
Go through countries that are not allowed to use an exchange you need to work with.
I hope your country won't be among those, but you need to check anyway.
Cryptocurrency Exchange Rates
The lower, the better.
So go through cryptocurrency exchange rates exchanges offer and choose the best rates for you.
The reasonable rate can save a lot of your money if you are a day trader, or if you withdraw very often.
Cryptocurrency Exchanges Problems
According to Statista, there are seven problems, which crypto exchanges deal the most. Below we will provide you the full list.
All the percent are about users; that is, 21% out of 100% answered mentioned that particular crypto exchange has a low-quality user interface.
Cryptocurrency exchanges are top-rated now, that is why there are literally A LOT of them.
And your task, as a future trader, to choose the best exchange!
Above, we listed the main problems of crypto exchanges, that is why it is very important to check each of them before trading.
Soon we will review all the popular exchanges, so stay with Safetrading and be informed about every crypto service.