Cryptocurrency has taken the world by storm, from Paypal to Starbucks today almost every leading company is on its way to accepting digital payments in the form of crypto. What started as a speculative breeding ground of money laundering and fraud is one of the leading industries in the world today. According to research issued by financial-services consultant Opim, global trading revenue generated by cryptocurrency exchanges will surpass the overall revenue generated by established stock exchanges like the New York Stock Exchange and the Nasdaq for the first time in 2021. While crypto has become mainstream it might still appear technical jargon to many, even today. But fret not, we are here to help you with that. In this article, we are going to talk about cryptocurrency and anything that you might need to know about it. In addition, we are also going to talk about cryptocurrency exchanges, the most important tool if you want to get involved in crypto trading and the best platform to buy cryptocurrency.
Do Let’s Begin!
Table of Contents
What is Cryptocurrency?
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Let’s start with the absolute basics. A cryptocurrency (or “crypto”) is a digital asset that may be exchanged without the use of a central monetary authority such as a government or bank. Cryptocurrencies, on the other hand, are created using cryptographic processes that allow users to purchase, sell, and trade them safely.
The technology that underpins Bitcoin and most other cryptocurrencies are known as the blockchain, which retains a tamper-resistant record of transactions and keeps track of who owns what. Blockchains solved a problem that past attempts to create completely digital currencies had: prohibiting people from duplicating their holdings and trying to spend them twice.
Depending on how they’re utilised, cryptocurrencies’ units are referred to as coins or tokens. Some even are meant to be used as currency.
One of the most common methods cryptocurrencies are created is through mining, which is used by Bitcoin. Mining is a time-consuming process in which computers answer complex riddles to verify network transactions’ legitimacy. As a reward, the owners of those computers may receive newly created cryptocurrency. Other cryptocurrencies use a variety of methods to create and distribute tokens, and some have a significantly lesser environmental impact.
It is important to note that mining is a very tedious process as a result the most common approach for most people to obtain bitcoin is to purchase it through an exchange or another user.
Now that we have understood what crypto is, let us understand what cryptocurrency exchanges are and how they help us.
What are Cryptocurrency Exchanges?
Exchanges that trade cryptocurrency for other assets and traditional currencies are known as cryptocurrency exchanges. These solutions give users anonymity while also ensuring that both trading parties are transparent. These platforms can be used by businesses to accept or purchase their cryptocurrencies, and they are the most frequent option for enterprises to begin investing in cryptocurrencies. To save money on transaction costs, cryptocurrency exchanges can be utilised as a practical medium for international trading.
For instance, $100 may be traded for a bitcoin of equal value on most cryptocurrency exchanges, and vice versa. Similarly, a bitcoin worth $100 can be traded for a corresponding amount of Ethereum. The same approach can be applied to a variety of assets depending on the exchange’s offerings.
Highlights of a Cryptocurrency Exchange
A product must meet the following criteria to be considered for inclusion in the Cryptocurrency Exchanges category:
- Accept cryptocurrency payments in return for goods.
- Traditional blockchain transactions will be made easier.
- Allow cryptocurrency funds to be deposited and withdrawn more easily.
Centrally Backed Crypto Exchanges Vs Decentralised Token Exchanges
Centrally reserved cryptocurrency exchanges double between mediators for purchasers and sellers. Centralized exchanges are far more trustworthy when they are possessed and trained by a trade. Approximately 99 cents of all cryptocurrencies are achieved by way of blockchain networks. Decentralized cryptocurrency exchange (DEX) allows users to act on companion transactions even outside a tertiary agent or mediator attack. Some consumers favour dispersed policies due to those questions complicated by concentrated exchanges. Democratized frugalities, and from the other extreme, do not specify both for exchange of unfamiliar bills for bitcoins.
Advantages of a Cryptocurrency Exchange
- Convenience
For beginner buyers, centralised markets provide a familiar and welcome atmosphere in which to trade stocks and cryptocurrencies. Consumers of decentralised exchanges can log in to their accounts, see their financial statements, and make payments using apps and platforms
- Dependability
Decentralised transactions have augmented an extra degree of security and serviceability to the game and trading. By permitting transactions via an established, centralised network, current densities provide greater comfort.
- Privacy
Consumers may not be required to fill out know-your-customer (KYC) applications on decentralised exchanges, letting users keep their privacy and confidentiality.
- Keeping Abuse of the Market at Bay
Decentralized markets protect customers from market fraud by allowing for friendly bitcoin trading, as well as insulating them from bogus businesses and wash trading.
- Reducing The Chances Of Hacking
Customers of digital currencies have never been authorised to send payments to a third party. As a result, there’s almost no chance of a company or industry being hacked, and users are safe from ransomware theft.
Now that we have looked at the advantages of using cryptocurrency exchanges, let us look at some of the best crypto exchanges of 2022 so that you can make a wise decision about which one to turn to for your trading endeavours.
Top 5 Cryptocurrency Exchanges of 2022
Coinmama
Coinmama is a well-known and easy-to-use cryptocurrency exchange. It only supports a few digital assets and does not provide a separate crypto wallet. Those seeking a crypto exchange with a wide range of tools and products should search elsewhere. Coinmama is a basic exchange that could be well-suited for newbie crypto investors who have crypto wallets on other platforms, unlike some other exchanges that offer a full spectrum of products and capabilities.
Key Features Offered By Coinmama
Bitcoin Mining Pools, Security API Integration, Exchange, Margin Trading, Multiple Payment Platforms
Pros:
- The simplicity of the platform
- In the bitcoin world, longevity is important.
- A strong emphasis on security
Cons:
- Limited possibilities due to the lack of a bitcoin wallet
- Fees that are too high
Changelly
Changelly is a full-featured Cryptocurrency Exchange Software for Startups, Small and Medium Businesses, Small and Medium Enterprises, and Agencies. This Web-Based Cryptocurrency Exchange Software features a basic UI and is straightforward to use. Changelly is compatible with Desktop, and Mobile and delivers end-to-end solutions for Windows, IOS, and Android operating systems. Cryptocurrency Wallet Creation, Exchange, Margin Trading, and API Integration are all made easier with Changelly Cryptocurrency Exchange Software. It can also help with Advanced Chart Tools.
Features Of Changelly
Exchange, Margin Trading, API Integration – Advanced Chart Tools, Cryptocurrency, Wallet Creation
Pros:
Changelly’s cost is 0.25 per cent, which is much less than most crypto exchanges.
Cons:
Other exchanges, such as Binance, provide even better transaction rates, making it possible to locate cheaper alternatives.
Gemini
Gemini is a privately held cryptocurrency exchange based in New York, New York.
The Winklevoss twins — Cameron and Tyler Winklevoss – founded Gemini.
Users may buy, sell, trade, and securely store cryptocurrencies on this cryptocurrency exchange. On the stock exchange, about 40 cryptocurrencies are exchanged. Bitcoin, Ethereum, Dogecoin, Chainlink, Litecoin, and other cryptocurrencies are examples.
It is a competitor to Coinbase and Kraken, as well as other cryptocurrency exchanges.
Features Of Gemini
It provides tiers of service for both casual investors and experienced traders. Customers must link a bank account and initiate a wire transfer or an ACH deposit from a bank to trade on the platform. It is open 24 hours a day, seven days a week.
It now has a mobile app, as well as a payment app, and its currency, the Gemini cryptocurrency or Gemini dollar, which is pegged to the US dollar.
Gemini was the first exchange to offer bitcoin futures contracts, back in 2017.
Pros:
- Ease of use and security in transactions
- Supports several cryptocurrencies. It even has its very own crypto token called the Gemini Stable Coin.
- Easy to use interface
- Allows investors to earn interests in their holdings.
Cons:
- It does not allow for short selling.
- levies exorbitant fees based on market value. The spread and the cost per transaction are included in the trading fees.
- Beginners may find Gemini to be a little challenging.
Poloniux
Poloniux is a cryptocurrency exchange with a list of over 350 supported cryptocurrencies and cheap trading fees. Poloniex is also a decentralised exchange that enables margin trading, lending, and other crypto products, which we appreciate. With minimal costs, a large asset variety, and useful features, this exchange may be able to suit the needs of many crypto traders. It is not, however, available to users in the United States.
Features Of Poloniux
- Earn Without Trading
- Margin Trading
- Protection against denial-of-service attacks
- DNS cache protection based on cryptographic signatures
- Robust protection against web-based assaults such as robot infiltration
- The majority of Poloniex user funds are stored in cold wallets.
- Users’ personal information is protected by role accounts.
- To prevent unauthorised changes to the website’s registry, use a registry lock.
- Authentication using two factors
- History of session logs
Pros:
- Low commissions for any trading volume
- Platforms for both basic and active trading are available.
- More than 250 different currencies are supported.
Cons:
- There are no advanced order types available.
- Support is insufficient.
- Hacking incidents in the past
Okcoin
With over 16 million Bitcoins transacted per month, it is the world’s largest Bitcoin exchange by volume. Star Xu, a highly technologically experienced entrepreneur, created the cryptocurrency exchange in 2013 and is based in Beijing, China. The OKCoin exchange caters largely to Chinese and Asian users, although it also admits traders from all over the world.
Features:
- Constant uptime: The seller claims that their service has minimal downtime, allowing you to trade when market circumstances are favourable.
- Security: The exchange takes precautions to keep your funds safe while participating in the programme.
- Connectivity to your bank account: The product can be linked directly to your bank account, making it simple to deposit and withdraw traditional currencies, sometimes known as “fiat” money.
- OKCoin has an incentive scheme that compensates you for trading on the market, resulting in a higher profit margin.
Pros:
- The liquidity that is above average Withdrawals is subject to verification.
- Futures and margin trading are both possible options.
- Trading fees are competitive and low.
- Platform with advanced features
Cons:
- Withdrawals are subject to verification.
- There is a smaller selection of crypto assets that can be traded.
- MetaTrader platforms are not available.
- BTC trade volume has been artificially increased.
Conclusion
Cryptocurrency is the way of the future and sooner or later one has to adapt to its ways. The earlier you begin the more beneficial it would be. Several factors should be considered before selecting a good cryptocurrency exchange as it involves high-risk faculties. The options provided above are a few of the leading brands when it comes to cryptocurrency exchanges.
For more information on cryptocurrency platforms and for more options to choose the best cryptocurrency exchange head to Saasworthy.
