Some years ago, the global financial market was blown up by cryptocurrency. At first, many did not believe that the virtual currency is able to hold on and, moreover, make a profit. But for a long time now, it not only keeps its position, but also constantly moves up. Now everyone knows about cryptocurrency. Novice investors and traders are actively interested in it, especially in deciding what is the best platform for buying crypto, and realizing that it can be used to make capital much faster than in the stock market. And today we will learn what points should be taken into account.
The main features
Crypto exchanges are divided into three groups:
- exchanges that exchange and manipulate different types of digital coins (bitcoin, litecoin, ether, etc.);
- exchanges where cryptocurrencies are exchanged for world currencies (dollar, euro, ruble, etc.);
- exchanges that carry out a full range of cryptocurrency manipulations.
Today the number of digital coin exchanges has grown significantly. But before registering and starting to work on the exchange, it is necessary to clarify with the administration what kind of manipulations can be carried out here.
Many traders who have already tried their hand at the stock and currency exchanges believe that everything is much simpler in the cryptocurrency market. But despite the fact that all exchanges in general represent a market and are very similar, the crypto exchange has a number of differences:
Features of trade. On crypto exchange, currencies move in pairs. Moreover, it can be a pair of digital coins (BTC / ETH), or it can be a digital currency to the world one (BTC / USD). It all depends on the type of exchange.
High volatility. Volatility is an indicator that reflects the change in the price of an asset over a certain period of time. Those changes that occur with real money in the stock market, where quotes can rarely jump 100% in a year. While the cryptocurrency can grow up to 1000%.
Difficulty getting relevant and fresh news. When it comes to world currencies or assets of large holdings, then any changes and fluctuations can be seen on the first lines of any news portal. With cryptocurrency, everything is more complicated – they rarely write about it in the press and hardly talk about it in the news. You can get fresh and relevant news only on specialized portals, forums or blogs.
Pricing. On crypto-exchanges, the main impact on the price is the release of a large volume of coins. Some players are trying to provoke growth in this way, simulating a currency blowout in order to attract participants from other exchanges.
The cryptocurrency exchange is a relatively new phenomenon, therefore, fraught with many prospects and dangers. Novice traders and investors should be very careful and prepare carefully before joining this uncharted stream. If you have made up your mind to trade some cryptocurrencies, check out Coinformant for the best ones. Surely you won’t regret it.
Choosing a cryptocurrency exchange
Another crucial point is the choice of an exchange for trading. Considering that they all have some differences in the type of transactions and quotations. Of course, every investor or trader wants to find the ideal option, because the quality of his future work depends on it. Therefore, when choosing an exchange, you should pay attention to the following points:
- The general opinion of users about the exchange.
- The size of commissions and fees.
- List of available operations.
- Restrictions by region.
Having chosen the best option for himself, taking into account the above criteria, the trader should register and go through the verification procedure. Immediately after that, you can replenish your account and proceed to trading.