Cryptocurrency and crypto exchanges are becoming increasingly popular, and there are now a whole host of stock exchanges that allow people to exchange and trade in these digital assets.
Let’s take a look at what a crypto-exchange is and what it does.
Subsequently, we will introduce some of the best crypto-exchanges that will dominate the market during 2019 & 2020.
What is a crypto exchange ?
The crypto exchange allows investors to buy, sell or trade digital assets – either using fiat currencies or in exchange for other cryptocurrencies.
Crypto exchanges usually support the world’s 20 largest cryptominations in terms of their overall market capitalization.
Traders are very concerned about securing their digital assets and that is why they prefer stock exchanges that offer them high functionality, a positive user experience and the required level of security.
What is cryptocurrency trading and how to make money ?
Before answering the question about what is digital currency trading, it is worth defining the concept of cryptocurrency. It is a digital currency or coin generated on the network. It is not related to the regular currency or the main currency system. In simple words, it is an electronic money.
Cryptocurrency trading is similar to online trading, but in this case, instead of ordinary assets (currency, stocks, bonds, etc.), Traders trade in digital currencies (for example, Bitcoin, LTC, XWC, etc.). Unlike binary options and foreign currency, this market is much more dynamic and unpredictable, constantly “fueled” by crazy price increases in exchange. The opportunity to earn huge income from cryptocurrency in a short time has become a hot topic of discussion.
In fact, if you have already traded binary options, foreign exchange, etc., everything is familiar. Traders buy and sell digital currencies at the most favorable prices, waiting for value to rise. You don’t need to do complicated manipulations to trade digital currencies.
The Main Tools are:
Charts – They can determine the trend of the currency – up or down, decline or growth; Guarantees cryptocurrency market players’ currency purchase or sale requests.
Transaction history – It helps to keep track of the exchange’s transaction list and transaction history. Regarding the volume of transactions, this information helps to determine the exact amount of cryptocurrency passed from one hand to another.
Crypto Exchange with Lowest fees
Coinbase Pro was one of the first crypto trading platforms – it was set up in San Francisco in 2012.
Its value is approximately one billion dollars.
It allows its users to easily withdraw and deposit their funds, offering them competitive transaction fees and advanced trading features.
This stock exchange is guaranteed by institutions such as NYSE, the New York Stock Exchange.
Supported cryptocurrency : Bitcoin, Ethereum, Bitcoin Cash, Litecoin, 0x and Batcoin.
Trading Volume: $ 102 333 155
Advantages: Full regulation in the United States, convenient fees.
Cons: Not the best choice for beginners.
Binance is currently the world’s largest crypto exchange.
Its CEO, Changpeng Zhao, said it functions as a complete ecosystem – it includes the stock market itself, e-wallet services, research, charity initiatives and many other attractive features.
Binance also operates its own cryptomain called Binancecoin, which you can buy here at a discount if you make transactions using a different digital currency.
Binance supports more than 130 tradable cryptocurrencies and is one of the best exchanges for buying digital tokens.
Supported cryptocurrencies: Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, EOS, DASH, Litecoin, NEO, GAS, ZCash, Ripple and many more.
Trading Volume: $ 725 673 705
Advantages: Low transaction fees – at around 0.1%, is not the best choice for beginners, as it has two trading versions – basic and advanced without a simple user interface.
Disadvantages: It does not allow you to trade in cryptos with the help of fiat currencies, nor to trade on margins or sell short.
BitMex is one of Hong Kong’s leading Bitcoin trading platforms.
As its name suggests – the Bitcoin Mercantile Exchange – it is a stock exchange trading exclusively with Bitcoin, the largest cryptocurrency in the context of market capitalization.
There have even been reports that BitMex recorded transactions worth more than $ 2 billion in just 24 hours.
Supported cryptocurrency : Bitcoin, Cardano, Bitcoin Cash, Ethereum, Litecoin, EOS and Ripple.
Trading Volume: $ 1,459,963,531
Advantages: Bitcoin futures contracts can be traded on this exchange as well as margin trading and short selling.
Cons: BitMex offers only one cryptocurrency trading and this crypto exchange services are not available in the US.
OKEx is one of the most popular crypto exchanges in the world today, supporting more than 145 cryptocurrencies and based in Hong Kong.
In addition, it even has its own cryptomene called OKB. This stock exchange is also extremely successful with a daily trading volume, with Bitcoin futures traded around $ 1.5 million each day.
OKEx is undoubtedly one of the most trusted global crypto-exchanges.
Supported cryptocurrencies: Bitcoin, Ethereum, Litecoin
Trading Volume: $ 741 197 934
Advantages: Allows you to trade on margin and sell short and generally supports over 145 cryptocurrency.
Cons: It does not offer services to US merchants but will extend to Malta.
Founded in 2011 by the cryptocurrency expert Jesse Powell, Kryen is one of the largest Bitcoin exchanges in the world – not least because of its popular section for trading traditional fiat currencies such as euro, yen, dollar, pound and more.
Moreover, Kraken is a partner of the world’s first cryptocurrency bank. Supports more than 17 cryptominations.
Supported cryptocurrencies: Bitcoin, Bitcoin Cash, Bitcoin SV, Cardano, DASH, Dogecoin, EOS, Ethereum, Ethereum Classic, Litecoin, Monero, Ripple, Tether, Zcash and many more.
Trading Volume: $ 110,363,700
Advantages: It offers high liquidity, supports several types of cryptocurrencies and is suitable for experienced traders.
Cons: Transaction processing time is quite long.
Other extremely popular crypto exchanges include platforms such as Huobi, Bitfinex, Bittrex, Bitstamp and KuCoin.
Each has its advantages and disadvantages and attracts different types of traders.
However, despite introducing you to the world’s finest crypto exchanges, none of them is a good choice if you plan to apply the HOLD strategy and stick to your digital assets over the long term.
In this case, we recommend that you use specialized electronic wallets with highly secure personal keys.
Similar : Best Cryptocurrency to Invest in 2020
Market instability, constant growth or depreciation, increased risks faced by investors have caused, if I may say so, a whole “cryptocurrency fever”: today everyone is involved in talking about when the digital currency will “burst” and what will happen next? Thanks to the news, sensational statements and high-profile headlines, we all know when a sharp jump in the cost of such currencies will happen and when will they fall.
Cryptocurrency volatility is hundreds of times higher than indicators among traditional trading options.
However, cryptocurrency trading is at risk of loss, and if you don’t have time to track changes in trends, you risk losing capital. The danger involves the fact that the future of cryptocurrency is misty, and it is not clear what will happen after this “bubble burst”. Additionally, password exchanges can block and hack password exchanges, and accounts can be hacked due to untrusted passwords.
The exchange is not responsible for such situations and any losses are entirely on the trader’s shoulder. Of course, all of these risks prevent investors from blocking cryptocurrencies trading and generating huge returns, and the likelihood of rapid earnings in the near future is increasing in the number of market participants interested in cryptocurrency trading today.
In cryptocurrency exchange, a profitable trading strategy is one that can bring good results to speculators. This is one of the first moments a trader has to think about making money from digital assets. It should be understood that choosing a broker or trusted crypto exchange is only part of the story. The network presents a variety of strategies for cryptocurrency trading. Among them are effective working methods and inefficient systems. But of all these varieties, how do you choose a strategy that will actually benefit you? We offer you a variety of trading strategies that are most often used by cryptocurrency exchanges among professional investors in crypto assets.
Trend trading – This classic technique is widely used in both binary options and forex. As a general upward trend, players do not need to have deep knowledge of the market or the ability to work indicators. For this strategy, it is important to choose the right moment to get the assets you want. This clearly indicates that in the near future, coins tend to raise prices.
Purchase and retention of assets – Another classic way of using cryptocurrencies is that most traders use it unconsciously. A distinctive feature of this strategy is that investors who have acquired digital coins have it in anticipation of price price increases and the sale of better offers. To accurately predict the rate of cryptocurrency here (the current cryptocurrency forecast for 2018 is here), you need to switch to the basic analysis of the market. The nature of long-term investment is influenced by the needs of users as well as large investors.
Perform a “rollback” transaction to the previous point – These strategies are distinguished by the fact that they offer more active trading and are widespread among players who work in the short term. Traders start trading in preparation for the trend in which coin prices are expected to rise to previous points (levels). The fact that the digital currency market is highly volatile is particularly helpful for this trading technique. For successful results, experts recommend using no more than 2% of the capital in deposit funds.
As you know, cryptocurrency exchange trading strategies are important in this market. Video materials and network traders opinions, also pay attention to the scalping and trading of news as an effective way to work.
What is the reason for the success of one trader and the continued loss of another trader?
You should constantly test your new cryptocurrency trading strategy, try new ones and not stop. Development is a necessary condition for profitable trading. Remember this.
Cryptocurrency exchange trading for dolls has long been a popular issue on the network as more and more people are trying to find the right income for them. Of course, cryptocurrency trading has been incredibly popular in the past two to three years, and there are many people who have discovered digital currencies among our acquaintances, colleagues and friends. All of this is impressive, the market is growing and the dynamics and volatility are amazing. An impressive number of traders are convinced that their main earning source is trading on cryptocurrency exchanges. Reviews, video tutorials, and numerous online meetings-all of this proves the popularity of the digital market.
And here you too have decided to learn from your friends, read reviews from different traders, save some money and get your hands on cryptocurrency. Where do you want to start because not everything is so simple here?
Actually, you are right. To get started and know that this market is comfortable for you, it is worth exploring simple trading principles for cryptocurrency exchanges.
Principles for Cryptocurrency Exchanges
- Learn helpful technical analysis capabilities with additional tools (indicators, oscillators, graphic lines, etc.) to accurately view market analysis and forecasts.
- Explore the market of the most popular and liquid assets. To do this, there are crypto exchanges, trading apps for transaction history, this data shows the trader’s interest in a particular asset. In other words, you can listen to the public mood and make decisions that will benefit you. News, study current market trends-this will benefits you.
- Decide which platform you will work on, it could be a stock exchange or broker terminal. beneficial and informative (analytic tools, high quality analysis, etc.).
- According to one of the most popular trading systems, you can trade according to market trends to get maximum capital without risking your money. Try different strategies that show good results.
- Take advantage of leverage opportunities. What is cryptocurrency exchange margin trading? In fact, everything is simple, and conscious use of this tool will give you positive results. Therefore, margin trading on digital coins is an opportunity to trade on the platform with borrowed capital obtained from brokers for security of assets as well as their own funds. What is to trade in a larger amount of currency and get more income than using a lot of capital. It is advantageous for both exchanges and players. If the broker receives interest from such a transaction, the trader himself, who properly manages the funds, has the opportunity to make an impressive income by temporarily borrowing funds from his broker.
Key concepts of cryptocurrency trading
- Cryptocurrency is a digital currency created by solving mathematical problems based on encryption.
- Encryption (of password)-the “language” of mathematics used to generate passwords and codes for the security and hiding of information; Used to confirm Bitcoin transactions.
- Blockchain-registry/database or “transaction log”.
- Mining -Extract digital currency (encryption software code) using computing power. Users provide computing power to create new transaction blocks, while users can be rewarded in the form of cryptocurrency.
- Miners(People who mines), reward miners by searching in millions of combinations of miners, namely mining cryptocurrency.
- Cryptocurrency exchange is a trading platform used by traders with the goal of earning income from cryptocurrency trading.
- Bitcoin is the world’s first cryptocurrency that traders can use as a digital currency.
- Satoshi -the smallest inseparable particle of Bitcoin currency.
- Altcoin is a common name for cryptocurrency offered on the market as an alternative to bitcoin.
- Forks are cryptocurrencies that have appeared on the market in part than bitcoins and other altcoins.
- Faucet, faucet is a special internet resource that allows users to receive cryptocurrency for completed work.
- Acquires large amounts of digital currency to artificially increase pump-exchange rates.
- Fiat, fiat currency-real money, price set by state (dollar, euro, etc.)
What is the difference between forex trading, binary options and cryptocurrency?
There is such a difference, which is important and has a more “closer” action to traders today. Unlike “traditional” and familiar financial markets (eg binary options, for example foreign exchange), the benefits of cryptocurrency trading are tens or hundreds of times higher than the standard market due to “space volatility”. However, the risk and loss rate in the digital currency market is also high. Not safe from blocking password exchanges or hacking accounts (and despite two-step registration etc.) Since cryptocurrency exchanges do not have a ready-made regulatory framework for this trading area, virtual markets are more likely to comply with general security requirements, user verification needs, thus failing to protect traders in unexpected situations.
Trading binary options is one of the simplest and cheapest investment options. As you know, when trading options, traders only need to determine the expected movement (up or down) of the quote. Forex trading (the whole truth about Forex) is somewhat more complicated than the options market and requires a lot more knowledge and misunderstandings (must be good at using pending orders, stop losses, margin calls). But here the income can be higher than the binary trading. Cryptocurrency trading doesn’t require deep knowledge of the field of trading, but in order to receive income in this case, investors need to keep track of the dynamics of the digital currency and see the most popular coins.
As we have already pointed out in the framework of our data, the main principle of such transactions is the purchase of more expensive currencies. Working in a standard financial market, you can track market dynamics and possible changes in news and important events. Encryption is not that simple. After the announcement of important news, the dynamics of digital coins can change several times, and there is another interesting feature. When a group of traders collaborate to buy/sell virtual coins in bulk, it can change the mood and time of the virtual market. Track it or you will lose your coins.
What is cryptocurrency trading?
If so, what should I do? “Vanging” (or “Cat Stroking”) apparently doesn’t work, and this humorous name that is common in virtual trading is no richer. It should be more serious. You should be able to analyze the market and track the mood of the participants. In addition, a set of standard tools available on cryptocurrency exchanges (chart, glass and transaction history, orders (BUY (Purchase) and SELL (Sales)) orders are accepted here) and order abort (benefit due to risk reduction) and suspension Limits (stop orders until a certain price is reached) Proper use of all of these data will help you accurately analyze the market situation.
Forex like binary options (basics of binary options here) is attractive because there is a bit of security because serious brokers get licenses and try to enter a professional association (NAUFOR (official website), etc.). . Crypto exchange does not provide this. And despite the fact that digital currencies become either binary options trading or one of the assets of the foreign exchange market to ensure quality income, this is not 100% sure that easy money is waiting for you. Digital currencies are dynamic, so you need to be able to use information and respond to changes in market sentiment in a timely manner.