The text below is an advertising article that was not written by reporters at Cryptonews.com.
Fortunately, there are many exchanges where you can trade Bitcoin and other currencies. However, the large number of options can be a problem. Which exchange to choose? Which are the best Bitcoin exchanges? In this article, we mention a few things to keep in mind.
Things get complicated when it comes to choosing the best trading platform. Many of the best sites are relatively new.
Bitcoin has been around for years, but it wasn’t until recently that its popularity reached levels unimaginable five years ago. The long-term forecast, beyond the occasional drops, is that the primary virtual currency will continue to break records. It is therefore natural that the exchange sites multiply.
And what’s wrong with the number of exchanges that exist? Well, not all of these exchanges are able to provide the service that customers expect. Service and reliability are key here, and it has it all on the market today!
What is an exchange for?
Let’s sum up. An exchange is the market where Bitcoins and other cryptocurrencies are bought and sold. We are talking about a generally virtual space where different means of payment are accepted, including shares or other financial securities that are accepted by the community that constitutes the exchange.
The purpose of trading, as you can guess, is to trade. What is commerce? It is the buying and selling of cryptocurrencies for the purpose of increasing profits from the price fluctuations of virtual currencies.
There are two main types of exchanges, with different characteristics: centralized and decentralized markets.
Centralized exchanges are used by most investors. They are online trading platforms and are distinguished by the use of an intermediary – a third party – who assists in the execution of transactions.
Like a traditional bank, this intermediary is a “trusted person” for both buyers and sellers. Centralized exchanges provide an image of security.
So what would a decentralized exchange be?
We are talking about an exchange characterized by P2P (peer-to-peer) exchanges. The site where cryptocurrency sellers and buyers connect directly.
The absence of central authority or intermediary and the absence of custody are what characterize decentralized exchanges. To validate transactions, these platforms use so-called smart contracts that run automatically and record transactions on blockchains.
Centralized exchanges are backed by a company. Users must register to be able to trade. It is also subject to AML, KYC, etc. regulations.
In decentralized cryptocurrency exchanges, users don’t necessarily have to create an account and can trade directly from their private wallet.
Other subdivisions are also found within the exchanges. Instant exchanges, for example, allow instant purchases. Meanwhile, derivatives exchanges provide access to the crypto derivatives market.
We can also find options that allow operations with fiat currencies and other exchanges that only allow operations with pure cryptocurrency exchanges.
Are trading on an exchange safe? It is the doubt of many. And yes, buying and selling Bitcoin through any of these platforms is fast and secure.
The buy and sell site brings together a considerable number of players (buyers and sellers; supply and demand) which accelerates the speed of agreements and therefore transactions. Some of the more reliable exchanges even offer insurance protection to their users.