Cryptocurrency is something that you can’t just buy and sell with your bank. Even stockbrokers didn’t offer these options for many years, with some jumping on board lately. Since the earliest days of cryptocurrency, Exchanges have existed – places to buy and sell cryptocurrency.
A crypto exchange is simply a trading platform for you to buy, sell, and change one cryptocurrency for another, such as Bitcoin to Litecoin. When purchasing cryptocurrency, you can do so with USD or Euro, or exchange other cryptocurrencies for it. You can also convert your cryptocurrency back into USD or Euro and withdraw it from your regular bank.
There is no one exchange that is best for everybody, and each exchange offers something a little different. It is best to evaluate your own interest in cryptocurrency, then find an exchange that suits your needs.
Some exchanges offer more obscure coins, some have added (or less) security, and some even offer great learning tools to help you on your crypto journey.
So what should you look for when choosing a cryptocurrency exchange?
Your location and country of citizenship may have an impact on what exchanges can you use. Some exchanges are not available outside the US, some are not available outside the EU, and if you live in a country like China, you may not have any (legitimate) access to any exchange.
It is wise to keep up to date on your country’s regulations around cryptocurrency. Because of many incoming regulations in the US, some exchanges operating from there have had to restrict what coins they sell. This often varies state-by-state, too.
Cryptocurrency is decentralized, which is one of its main draws. While the positives are many, it means that you have to actively pay attention to security. If something goes wrong, there are very few entities that can help you.
That said, many cryptocurrency exchanges, such as Coinbase and Gemini, keep any balances in U.S. Dollars you hold with them in FDIC-insured bank accounts. But FDIC insurance doesn’t apply to cryptocurrency balances.
Some exchanges offer insurance that does cover cryptocurrency balances, while others such as Kraken rely on their robust security to ensure a hack can never happen.
If you decide to keep your cryptocurrency online, or put the majority into a hardware wallet, the security of the exchange you work with must be a top priority.
Fees are worth considering on an exchange, but high fees shouldn’t turn you off an exchange. As a general rule of thumb, the easier the buying and selling process is, the higher the fees will be.
Some exchanges, like Cash App, charge fluctuating fees based on price volatility. Fees are often charged per transaction and can differ whether you’re the seller or the buyer. There may also be different fees depending on which currencies you trade.
Coins On Offer
Every exchange will offer Bitcoin. Nearly every exchange will offer Bitcoin, Ethereum, and Litecoin. But as the list of coins go on, less exchanges will appear.
Generally, exchanges offer the most popular cryptocurrencies. Exchanges as a whole are less likely to offer small coins such as those under a dollar in value, or those that are extremely volatile, but there are always exceptions.
Knowing if an exchange deals in the coins you’re after is critical.
At the end of the day, it’s up to you what exchange you should use, based on your needs. If you consider yourself a generalist in terms of cryptocurrency, you can’t go wrong with any of the most popular cryptocurrency exchanges:
Protecting Your Cryptocurrency
Cryptocurrency and the blockchain stand to be a major driving factor in the technology of the future. However this popularity has attracted an element of cybercrime. There are several tools internet users should use to increase their online protection. One of these tools is SaferNet.
SaferNet is the perfect solution to the cybersecurity issues that individuals, families, and businesses face today. It not only connects every device using a secure, 24/7 always on, military grade VPN, but it also stops outside cyberthreats, malware and viruses as well. On SaferNet, all users are protected anywhere in the world, all the time, on any cellular or Wi-Fi network. In addition to SaferNet’s VPN and cyber protection, it also offers a range of employee or parental/family internet controls including internet filtering, monitoring, scheduling, and blocking access to websites or even entire website categories
Typically, a user would need 3 separate services for a VPN, Malware Protection, and Internet Controls; SaferNet offers all 3 features in one service. SaferNet truly is an endpoint security presence that can be implemented in minutes around the world, on phones, laptops, tablets, and computers at an economical price point that caters to all internet users. SaferNet guarantees a smooth setup and installation process that takes only minutes, and an easily accessible control hub for you to monitor all your employee’s or family members devices; including activity, time spent online, and threats blocked.