A cryptocurrency exchange is a broader term; it involves exchanging one type of cryptocurrency with another; buying and selling of cryptocurrencies, and exchanging FIAT currencies for cryptos.
Basically, a cryptocurrency exchange is an online platform that serves as a medium for buying and selling of cryptocurrencies or cryptos like Bitcoin, Ethereum, Dogecoin, Litecoin, etc.
An Overview of Bitcoin & Crypto Exchange
While cryptocurrency exchange involves exchanging one kind of crypto for another, Bitcoin exchange involves exchanging Bitcoins for Altcoins (all cryptocurrencies except Bitcoin are termed as Altcoins).
Choosing the best Bitcoin or cryptocurrency exchange is very important as you would be investing your funds. While this calls for a secure medium, ensuring safety and transparency, you must also consider certain other factors.
How to choose the best Bitcoin or cryptocurrency exchange?
Before learning how to choose the best crypto exchanges, let us understand the different types of crypto exchanges, which are as follows;
- Trading platforms
- P2P exchanges
- Cryptocurrency brokers
The most common type of cryptocurrency exchanges are trading platforms like Bitcoin Loophole. To register or log in to Bitcoin Loophole, you can visit their official website. These platforms act as a marketplace for buying or selling Bitcoins and other cryptos. And, every time you transact, additional fees or transaction charges apply in such platforms.
Nevertheless, they are the safest and most secure exchanges for your crypto investment.
In the case of P2P exchanges, the buyers and sellers directly interact with one another while cryptocurrency brokers are similar to Forex brokers. In the latter, the prices are set by the brokers.
Things to Consider while choosing Crypto or Bitcoin Exchange
The important factors to consider while choosing the best bitcoin or cryptocurrency exchange are as follows;
- Protection from cyberattacks
Safety is a primary concern where the Bitcoin and crypto exchange platform must offer protection from hackers and other cybercrimes. The reputation of the exchange platform can also be considered while the customer reviews may be treated as proof of the site’s authenticity.
- Mode of cryptocurrency purchase
While exchanges enable you to exchange one crypto for another, certain platforms also enable you to purchase cryptos for fiat currencies. If you do not have cryptos to start with, we recommend exchanges that enable you to buy cryptos using multiple payment options like bank transfer, payment gateways like PayPal, etc.
- Exchange Fees
The fee structure, typically the transaction fee, and other handling charges vary from one Bitcoin exchange to another. Also, certain exchanges only charge a transaction fee for selling Bitcoins while they do not charge any additional fee for purchasing Bitcoins.
- Support for other tokens or cryptos
Bitcoin and sometimes Ethereum is synonymous with cryptocurrency. However, there is a myriad of other cryptos like Litecoin, Dogecoin, etc. An ideal Bitcoin exchange must support the exchange of other cryptos alongside Bitcoins and Ethereum.
Apart from this, certain exchanges enable you to exchange FIAT currency for cryptos and vice versa. Nevertheless, before investing, please take the time to compare the exchange rates and safety standards.
Conclusion
With many Bitcoin and cryptocurrency exchanges saturating the cryptocurrency market, choosing the best gets a little tricky. However, considering the key factors stated above, you can narrow down your choices for the most secure and safe cryptocurrency exchange. If you are looking for Automated trading platforms then you can check out Best Bitcoin Robots to get more knowledge about it. To learn more about Bitcoin, go through our Bitcoin latest news today.