How It all Works
The exchanges can send cryptocurrency to a user’s personal cryptocurrency wallet.
Certain ones can convert digital currency balances into anonymous prepaid cards that are used to withdraw funds from ATMs on a worldwide scale, while other digital currencies can even be backed up by real-world commodities including gold.
Many of the creators of these cryptocurrencies can be independent of the digital currency exchange that facilitates the trading of the currency itself.
Digital currency providers are businesses that keep and administer accounts for their customers but do not issue digital currencies directly to the customers.
The customers however can trade, buy or sell digital currency from these exchanges, who transfer the digital currency into or out of the customer’s digital currency provider’s account.
Digital currency exchange has the possibility of being a brick-and-mortar business or strictly an online business.
What to Look for In an Exchange
When you decide to trade cryptocurrencies within an exchange, you need to ensure that it has credibility. This means that the exchange should be able to display that It is indeed trustworthy.
You also need to analyze the fees and payments. This is due to the fact that all of the exchanges have different fees and you need to make sure that you know what you are getting yourself into in terms of fees.
Always know which methods of payment the exchange offers. Finally, you need to analyze the restrictions and regulations in-depth, as some countries accept cryptocurrencies while others do not.
Make sure that the exchange is compliant within your country before making an account and engaging with trading.
The Best Cryptocurrency Exchanges
When it comes to deciding on which cryptocurrency exchange you want to start your trading on, here are the top 10 exchanges that you need to keep your eye on:
- Binance
- Coinbase Pro
- Huobi Global
- Kraken
- Bitfinex
- Bithumb
- KuCoin
- US
- Bitstamp
- Bittrex
Keep in mind that if any of these do not adhere to the aforementioned things that you need to look for in an exchange, you can dig deeper and find the one exchange that is perfect for your specific needs.
