Best Places To Buy And Sell Cryptocurrency

Welcome to the topic “Best Places To Buy And Sell Cryptocurrency.”

There is no doubt that cryptocurrency is becoming one of the hottest topics around the world. For cryptocurrency, a peer-to-peer digital cash system is used. Therefore, one requires a bank account like any other transaction, but keep in mind that cryptocurrency transactions must have sufficient balance.

The miners check each activity and then verify it to prevent any double-spending or resolve issues regarding the repetitive use of the same entity. These miners are also responsible for taking the transactions, stamping the transactions as legal, and then spreading these into the network. There are a number of cryptocurrency exchange platforms available to buy and sell cryptocurrency.

It is not easy to choose the best one among so many available options, and there are a few things one needs to think before investing in cryptocurrency. Buying and selling cryptocurrency can be confusing, and the processes involved are quite different.

How to buy and sell cryptocurrency?

Buying and selling cryptocurrency is a bit different as compared to traditional currencies like dollars and pounds. There has been a massive surge in the cryptocurrency platforms that offer you the opportunity to buy and sell, trade, or exchange the many available digital currencies, but not all of these platforms are equally reliable.

CFD trading on cryptocurrencies

CFDs are the trading derivatives with the help of which you can speculate on cryptocurrency’s price movements without owning the underlying coins. You can move on and go long if you have an idea that the cryptocurrency’s value will rise, or you will go short and sell it if you think that the value will fall.

Trading CFD is quite leveraged as you only have to put up a small deposit called margin in order to get the full exposure in the underlying market. The profit or loss in trade is calculated according to the size of your position, and therefore, leverage will magnify both your profits and losses.

Buying and selling through a cryptocurrency exchange

A cryptocurrency exchange or platform is a website where you are able to buy, sell, or exchange the cryptocurrencies for any digital currencies and even the traditional currencies like US dollars or Pounds. Those individuals who would like to trade professionally and have access to different trading tools are likely to need to get the services of a cryptocurrency exchange that requires ID verification and opening an account.

For those people who would like to make a simple and occasional trade, there are many platforms available that they can use, where an account is not required.

Types of cryptocurrency exchanges?

• Trading platforms

Trading platforms are the websites that connect the buyers and sellers and charge a fee from them for each transaction.

• Direct trading

There are specific platforms that offer person to person trading where people from different nationalities can exchange currency from their bank accounts. There isn’t a fixed market price with direct trading exchanges, and therefore, every seller can set their own exchange rate.

• Brokers

These are known to be the websites that any individual can visit and buy a cryptocurrency at a price that is set by the broker. These brokers are quite similar to foreign exchange dealers.

What we need to look out for before we join a crypto platform?

Before you start trading, it is necessary to do a little homework on your side. The following are a few things that you must check before you go for the first trade.

• Reputation

If you want to find out about the reputation of the crypto platform, you can go through the reviews from the individual users and the well-known industry websites. On different forums, you can ask questions about the cryptocurrency platforms, and on the basis of those reviews, it will be easy for you to make a decision.

• Methods of payment

It is vital to have a look at the available payment methods on an exchange, whether it is a Debit card, a Credit card, Wire transfer, or PayPal. If a cryptocurrency exchange has limited payment options, it obviously can’t be convenient to use it.

You have to keep in mind that when you are purchasing cryptocurrency with a credit card, it needs identity verification, and it comes with a premium price, as there can be a high risk of fraud and high fees for transactions and processing. If you purchase cryptocurrency through wire transfer, it can take longer because the banks need time to process.

• Trading fees

Most of the cryptocurrency exchanges have information regarding fees on their website. Therefore, before you join, it is better to make sure about the deposit, transaction, and withdrawal fees. There might be a substantial difference in fees, depending on the exchange that you use.

• Geographical restrictions

There are specific user functions offered by the cryptocurrency platforms that might be accessible only from certain countries. You have to make sure that the exchange you join offers you access to its entire platform functions and tools in the country or area that you currently live in.

• Verification requirements

Most of the cryptocurrency trading platforms require some ID verification to make any deposits and withdrawals. However, you might find some exchanges that let you remain anonymous. The verification process can take up to a few days and might seem like a painful process, but this protects the cryptocurrency platform against any type of scams and money laundering.

• Exchange rates

There are different rates for different exchanges. One can be quite surprised to see how much can be saved by shopping around. It is quite common that the rates tend to fluctuate up to 10% typically, and even more than that in some instances.

Which are the best platforms to buy and sell cryptocurrency?

We can see slow and steady attention towards cryptocurrency from more investors all around the globe. Time and again, these cryptocurrencies are proving very profitable, and that is why some people even earn interest on it, while the others get involved in speculation with short-term trading. Following is the list of best cryptocurrency platforms.

• Binance

Binance is a fast-growing cryptocurrency exchange registered in Malta, which is known to be crypto heaven and offers a swift exchange. The majority of beginner traders prefer Binance, but the advanced traders also utilize it. It offers an inbuilt wallet that is ideal for storing your cryptocurrency for the short term. The traders also have the option to earn interest on cryptocurrency or USDT holding, if they allow it. Tether USDT is an especially designed cryptocurrency where an underlying US dollar is to be represented by every token.

Binance has grown rapidly and is among the top exchanges of cryptocurrency in the world. It is a centralized exchange and has used a unique way to expand its business while offering quite a decent discount, especially for the traders who use BNB coins. BNB is a cryptocurrency token created by Binance and helps you save money on buying and selling its coin.

The global exchange of Binance is available for everybody and also has the highest liquidity. The fee structure of Binance is also quite unique, as there is a 0.1% standard trading fee in the start that is relatively less as compared to the other peers. The fee can be reduced further if the trader pays a trading fee in BNB. It is essential to register with an email ID to get started with Binance, and this process is straightforward. Binance is among the few cryptocurrency exchanges that offer a mobile app to its users.

• Bitfinex

Bitfinex is among the most popular and largest cryptocurrency exchanges out there. Since 2014 and based out of Hong Kong, operations have allowed the users to trade 13 cryptocurrencies in USD or BTC that include Bitcoin, Litecoin, Bcash, Dash, and Ethereum, etc.

With Bitfinex, you can trade using USD, and the trade fee that a user needs to pay varies from 0.1% to 0.8%. There is also a specific fee that is charged when you withdraw or deposit anything. The pro-traders can find a number of advanced tools on Bitfinex. These tools include stop orders, limit orders, fill or kill, trailing stop, TWAP, and many other tools along with a few market charts.

You are required to register, verify the ID, and authenticate yourself in order to start trading cryptocurrency on Bitfinex. After you submit a valid ID proof, you need around 15-20 business days before you get accepted into this platform. Bitfinex also offers mobile apps for Android and iOS. Therefore, when you get bored with its web version or would like to trade on-the-go, you can use the Bitfinex app.

• Coinbase

Coinbase is a crypto platform that is based in the US and serves the audience around the world. This particular platform offers excellent speed and reliability and is very friendly to beginners. When using Coinbase, you can buy and sell cryptocurrencies quite quickly.

Coinbase has an app for Android and iOS that offers comfort to its users when they exchange cryptocurrencies from anywhere, and the wire transfer feature is also available with it and is safe. Coinbase has a security standard that is of the enterprise level, and it has been around for several years. 

This cryptocurrency exchange is supported in almost all the continents of the world that include North America, South America, Asia, Europe, and Australia. Coinbase also supports the popular stable coins like USDC and DAI. This is considered one of the essential aspects of a cryptocurrency exchange that is popular in public.

• ChangeNow

One of the easiest and most reliable ways to obtain multiple cryptocurrencies is ChangeNow. It has a track record of consistently offering the right products put out into the crypto space. With ChangeNow, you are not required to go through any lengthy registration or verification process, as it is a non-custodial exchange.

ChangeNow supports different types of cryptocurrencies with fiat pairs like USD, Pound, and Euro. This is the main reason why it is considered to be one of the easiest and best cryptocurrency platforms.

When using this platform, the matching engine can connect you to the best and the busiest exchanges of cryptocurrency in the market in order to get you the best possible price. ChangeNow charges no fee, and its profits come from successful trading that is already included in the rate and network fee. We see what we get, and therefore, we don’t have to worry about any hidden charges.

• Bittrex

Bittrex is also a US-based cryptocurrency platform that offers its users the option to trade more than 190 cryptocurrencies at one time. Bittrex is compliant with all the US rules and is regulated, and so the users don’t need to worry about the safety of their investments.

Bittrex is handling enormous BTC trading volumes in the world, and its users are free to decide the rate at which they would like to trade, while Bittrex charges a small service fee of 0.25% for offering its platform.

One needs to register and log through the email ID to get started with Bittrex. In order to withdraw funds, one needs to do a KYC by submitting the ID documents and the contact number, and also enabling authentication for the higher limits.

The best thing about Bittrex is that its account verification process is relatively quick, and it supports two account types, i.e., Basic account and Advanced account. Bittrex is a pure crypto-only platform, which means that it doesn’t allow depositing fiat currencies like USD, Euro, or Pound.

Bottom Line

Choosing the ideal cryptocurrency exchange platform for specific requirements can be quite tricky and time-consuming. You have to pay attention to the reputation of the exchange, security, fees, verification process, and the geographical services it offers.

Keep in mind that it is not necessary to use only one cryptocurrency exchange, and you can take advantage of services from multiple platforms. The main idea is to decide which platform suits you and whether it is a single platform or more than one. If more than one, you can make a list, and then you can try a few alternatives, when you start trading for cryptocurrency.

Have any questions in mind regarding the topic Best Places To Buy And Sell Cryptocurrency? Feel Free to comment down below.

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