The Beginner’s Guide to Crypto Currency Trading
Cryptocurrency exchange or digital currency exchange is a business that involves the exchange of cryptocurrencies with other assets such as money or any other digital currency. It is a web service that provides electronic transactions in electronic forms and charges fees for them.
Any transaction or operation to Digital Currency Exchange can be made through debit and credit cards, money order or any other type of money transfer. This article is about the various cryptocurrency exchanges that make it easy to trade cryptocurrency for beginners and what they offer in terms of availability, ease of use, security, deposit/withdrawal methods, and fees. We hope this guide to cryptocurrency trading can help you get started with cryptocurrency exchanges.
Coinbase/GDAX
Coinbase is one of the largest cryptocurrency exchanges based in San Francisco, California. It is available in 32 countries and currently serves more than 10 million customers. Released in 2012, it has a user-friendly interface that makes exchanging digital currency an easy task for a non-technical person. It is also available for both iOS and Android. Unfortunately, Coinbase does not provide cryptocurrency mining for beginners and is just an exchange.
As of now, it offers four currencies, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Trade digital currency with US dollars, euros and British pounds. With minimal transfer fees, Coinbase has never experienced any security breaches, making it a perfect platform for exchanging digital currency. On top of that, Coinbase also offers a full advanced exchange called GDAX. It offers more advanced features and different and better trading rates than Coinbase.
bit stamp
Bitstamp is another platform that provides digital currency exchange. It is relatively easy to use and offers more advanced features through TradeView. Bitstamp offers currencies like Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and Ripple. Exchange digital currency with US dollars and euros. You can put all the latest crypto currency trading techniques to work on this exchange.
It offers flat deposits through bank transfers and accepts debit/credit cards. Perhaps the only drawback that can be found in Bitstamp is the slightly high fees and the fact that it suffered a security breach in 7 years of operation. However, it is one of the most trusted exchanges. It is available on both iOS and Android.
Gemini
Gemini is a UK-based company launched in 2015 by the Winklevoss twins. It is available in some countries, including the US, Canada, Hong Kong, Singapore, and South Korea. One of the downsides of this platform is that it is not particularly easy to use. Therefore, it is not recommended for beginners to use this platform.
It offers two coins and 1 FLAT coin Bitcoin Cash, Ehtereum and US dollars. Gemini follows strict protocols when it comes to security and as of 2018 has not encountered a single security breach, making it one of the most secure and trusted digital currency platforms. However, it is important to have digital currency investment strategies before you start trading.
digital ticks
Digital ticks is a modern crypto exchange that aims to be a game changer in this sector. They have implemented many of the latest techniques making it easy for anyone to start trading.
It has a unique feature called Single Portfolio View which would allow traders to view all portfolio positions in a single portfolio. It would be easy for traders to make informed decisions regarding cryptocurrency trading using this unique feature. It also supports Bitcoin, Ethereum, Litecoin, and Dashcoin.
kraken
Kraken is one of the oldest cryptocurrency exchanges. Launched in 2011, Kraken is the largest exchange in terms of volume and liquidity for EUR trading pairs. Serves all over the world, including the US.
Kraken offers a variety of coins including Bitcoin Cash, Ethereum, Monero, Augur, Litecoin, and many more. It also supports deposits/withdrawals via bank transfers and cryptocurrencies. Having a not-so-friendly user interface, it also suffers from stability and performance issues, but it is nonetheless a good platform for cryptocurrency exchanges.
Bitfinex
Bitfinex is the largest cryptocurrency exchange platform. Launched in 2012, it has a user-friendly interface and offers a host of advanced features such as margin trading, margin financing, etc. It is available for the iOS and Android platforms. It offers BTC, BCH, ETH, LTC, IOTA, XMR, and NEO.
Like the previous cryptocurrency exchanges, it supports withdrawals with US dollars and euros through bank transfers. Bitfinex has suffered two security breaches, the first being in May 2015, which resulted in a loss of $330,000. And the second in August 2016 that resulted in a loss of $72 million.
EtherDelta
EtherDelta is a decentralized exchange that directly supports peer-to-peer connection. It is very different from the cryptocurrency exchange platform discussed above. Here, funds are held in a smart contract on an Ethereum network from which you are solely responsible for depositing and withdrawing. EtherDelta currently only supports Ehtereum-based tokens.
EtherDelta has a rather confusing interface that makes it difficult for users to trade cryptocurrency. On one occasion, someone tried to buy 750 Kyber for 0.007 ETH each but ended up buying 0.007 KNC at 750 ETH.
Conclution
After looking at the various cryptocurrency exchanges, we can safely say that Coinbase and Bitstamp stand out in terms of their good features like security, user-friendly interface, multiple withdrawal/transfer methods, and many more.
I wouldn’t call them perfect, but I would recommend that it’s the safest bet you can make. Each cryptocurrency exchange is unique in its own way and has advantages and disadvantages. We just have to select the one that suits our needs. We hope this guide on basic cryptocurrency trading and trading will give you a head start on your cryptocurrency trading journey.