Cryptocurrency Exchanges Recommendation
Cryptocurrency can be exchanged at their own market, the crypto exchange platform allow trader and investor to trade their crypto assets buy, sell, or even swapping to other cryptocurrency.
Every crypto exchange have their own policy, and very competitive with each other.
Before using cryptocurrency exchange, of course you need a crypto asset stored in crypto wallet. Usually, the crypto exchange platform have their own digital wallet, but there also an external independent wallet you can use to store your crypto assets.
If you are using the wallet from crypto exchange platform, they are responsible for the security. However if you are using independent wallet, you have to manage your own wallet security.
Read : Understand What is Cryptocurrency ?
So, let’s go back to the main topic here.
What is Cryptocurrency Exchange ?
Cryptocurrency exchange is a platforms where people can trade their cryptocurrency assets for another assets, it’s also allows people to trade with normal currencies, like USD or Euro.
Cryptocurrency Exchange platform is essential for crypto ecosystem, without the exchange platform your crypto assets is nothing but a “junk” since you cannot do anything about them.
How does it work?
Most of them works like a trading broker, a third party platform between buyer and seller.
First of all, their users need to make an account in their platform with a crypto wallet inside. Then the users can make a deposit directly with their own crypto assets or with normal currency which can be exchanged later in their market platform.
Types of Cryptocurrency Exchange
Centralized Exchange (CEX)
This type of exchange is the third party platform runs by private company, which allow buyers and sellers to do their trading activity within the platform.
The Centralized Exchange platform has customer support and nice user interface which is pretty good for beginner. The only problem is, it’s frequently vulnerable with hacking because of higher trade volumes and liquidity.
Decentralized Exchange (DEX)
While centralized exchange is like a broker platform, decentralized exchange is more like marketplace. Which using a peer-to-peer exchange.
This type of exchange is spread throughout computers located around the world, which means if one computer is attacked, the network keeps running.
The only problem of decentralized exchanges is lower trading volume, small liquidity, and a lack of customer support.
- Hybrid Exchange
Like the name hybrid provide both centralized and decentralized system, they offer fast transaction without compromising users privacy.
Read : DeFi and CeFi Differences
Cryptocurrency Exchange Fees
Crypto exchange charge fees for using their services, there are two types of fees you need to know :
- Exchange Fee : It’s like a service fee for using their platform, this fees include trading fee, deposit fee, withdrawal fee.
- Network Fee : Usually paid for miners who process and secure crypto transactions on the blockchain. Some of them allows to pay more to speed up transaction speeds.
Recommendation of Cryptocurrency Exchange Platform
Check out the list of recommended cryptocurrency exchange market to trade your crypto assets :
Coinbase is recommended for beginner, with user friendly interface, some educational material, and lot of cryptocurrency selection. The only problem with this exchange, it’s charge a higher fee.
Crypto.com has an outstanding cybersecurity infrastructure, it also have a large cryptocurrency selection. The problem with this exchange, some services are not available in certain country and doesn’t have a crypto to crypto option.
Binance is a great cryptocurrency exchange which charge low fees and they also have advance trading chart in their platform. The only problem with this exchange, some services are not available in certain country.
Also known as Bitsquare is a recommended decentralized exchange, it can maintain an open-source platform which is completely decentralized without limiting currency support. Bisq support crypto and normal currency exchange, However it’s only accept Bitcoin and BSQ coin only.
There are much more cryptocurrency exchange platform you can use. However, when looking for a cryptocurrency exchange platform the most important thing you cannot missed is their security measures against hacker.