When Bitcoin was released in 2009 you couldn’t trade it with any other cryptocurrency since Bitcoin was the only coin available. All you could do is buy bitcoin using the traditional currency like the U.S. dollar and wait for its value to grow. Later on, when many other cryptocurrencies got released, people started trading them with one another.
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Exchanging cryptocurrencies have become hot over the last years. Trading cryptocurrencies with each other using crypto exchange platforms is the way to go! There are many crypto exchange platforms out there such as Binance for example. Although, trading experts and those who have been part of the “crypto game” for a long time are using various strategies to trade, now the most common one is trading using cryptocurrency exchanges.
As the crypto world grows and day after day has more influence on our daily lives so do the exchanges. If you are interested to exchange cryptocurrency it might be a good idea although it has its own risks. Let’s not forget that in 2017 nearly half of Initial Coin Offerings (ICOs) failed. But we all have to start somewhere, don’t we? Well, first let’s understand better what cryptocurrency trading is?
What is cryptocurrency trading?
The idea is really simple. All you have to do is trade the coins with one another hoping that the coin you buy increases its value. It’s similar to forex trading or to the real-world stock exchange. Traders can buy with a buy and hold strategy or trade daily or weekly up and down volatility. You must know though once you decide to get into this business that there are some things you should take into account. You have to secure your accounts, you have to understand the order types and trading on margins might not make sense for you in the beginning. You should know also that cryptocurrency exchange is not a part of a regular stock exchange and that it is taxable. Well, by now you most probably are ready to get down to business so here are the most outstanding cryptocurrency exchanges you should use to trade your coins!
Top three cryptocurrency exchanges you should use to trade in 2020
Binance is the most prestigious and widely used cryptocurrency exchange platform. It is a relatively new exchange but it has impressed the users. It is actually the biggest cryptocurrency exchange platform in terms of the trading volume. It has started in China but then moved the headquarters in Malta, a crypto-friendly country. The exchange has so many additional services including SAFU (Secure Asset Fund for Users). This fund takes 10% of trading fees that the exchange earns, to give it back to the users in case of a hack. It is a platform that offers to trade more than 100 cryptocurrencies and it has its own coin as well – Binance Coin that allows users to save big on trading fees. Recently the exchange has opened a fiat gateway for Hong Kong dollars. Also, lately, Binance has set up an office in Istanbul. According to the Cointelegraph, Binance CEO Changpeng Zhao has said that he wanted to establish a local team consisting of between 10 and 20 people and that the exchange has actively been seeking applicants for managerial positions to lead the Turkish team. This comes just after Binance added support for the Turkish lira on its platform. So as we can see the exchanges are growing more every day and their impact is getting bigger.
Coinbase is located in San Francisco, California and it is a beginner-friendly crypto exchange. If you are a beginner and want to start trading crypto you should try this platform out. Overall Coinbase has lower fees than the other platforms. It was released in 2012 and it is one of the most trustworthy exchanges. Coinbase supports customers in more than 30 countries. Some of the best things about Coinbase are that it has high liquidity and buying limits and it is considered as an easy way for newcomers to get bitcoins.
Kraken is founded in 2011 and it is the largest Bitcoin exchange in euro volume. Using Kraken you can buy and sell bitcoins. Also, you can trade between bitcoins and euros, US Dollars, Canadian Dollars, British Pounds and Japanese Yen. It’s also possible to trade digital currencies other than bitcoin such as Monero, Etherium, Ethereum Classic, Augur REP tokens, ICONOMI, Litecoin, Zcash, Dogecoin, Ripple and Stellar/Lumens. Kraken offers margin trading and a host of other trading features, for more experienced users. It is a great exchange for traders that have more experience.
Cryptocurrency exchanges are part of the crypto space that represent some of the most iconic brands and are led by some of the most debated figures in the history of crypto. The crypto space is an area of opportunists, true believers and speculators. We should remember that exchanges are businesses and opportunistic ones as well. So let’s be careful when picking one.
Whenever you decide to get into this business take into consideration checking the reviews of the cryptocurrency exchanges as it is probably the most sincere factor that will help you decide which one you are going to choose.