Home > Blog > Do You Want To Buy Cryptocurrency? What should I pay attention to on the exchanges?



Trading cryptocurrency is difficult. You can make your life much easier by using a crypto exchange. But with so many options, including those that appeared just a few years ago, choosing the right exchange requires caution. When cryptocurrencies first appeared, the first followers acquired coins by mining or exchanging them on online forums. But if you don’t have a lot of time (and technical knowledge), most likely you will need something more convenient. It is not difficult to buy cryptocurrency. Before buying, you should decide on the exchange where you will purchase cryptocurrency. Cryptocurrency exchanges are companies that store cryptocurrency assets and bring you together with other buyers and sellers, which allows you to trade cryptocurrency in the same way as you trade stocks on a brokerage account. (Most of the well-known companies involved in stock trading, such as Merrill Lynch and Schwab, are still not engaged in cryptocurrency trading.) But while exchanges have made cryptocurrency trading much more accessible, there have been big problems, from high-profile security breaches to trading fees that overshadow what investors can pay to trade other assets. As a result, you can’t just use any exchanger that you accidentally stumble upon on the Internet.

With the growing popularity of cryptography, up to 10,000 different coins per binance are now offered to choose from. No exchange offers all digital assets, so make sure your crypto exchange provides the ones you need. Think about whether you are mainly interested in bitcoins, ether and a few leading DeFi tokens that help manage smart contracts, or you need a simpler or more complex menu.

A great starting point for binance are large well-known exchanges such as Coinbase, Kraken, Binance. They offer a wide range of coins and tokens that are suitable for most investors, from beginners to active traders. Binance (binance) it is convenient and fast to buy cryptocurrency. About 600 coins are offered on the exchange. Coinbase allows you to trade more than 450 coins, and Kraken offers more than 160 coins, including so-called meme coins such as the dogecoin coin and the Shiba Inu coin.

For those obsessed with cryptography, there are exchanges, often located abroad, that allow you to trade dozens of little-known coins. One caveat: they don’t always follow US laws or offer the same level of investor regulation that you might expect from, say, a US trading platform.

If you want to mainly trade stocks, as well as several well-known coins such as Bitcoin, ether and dogecoin, pay attention to Robinhood, a well-known stock trading application that allows you to trade multiple coins without commission.

It’s no secret that cryptocurrency exchanges are vulnerable to hacking. Thus, it is wise to avoid investing money in a crypto exchange with a significant history of cyber attacks or theft. It is important to choose the right reliable exchange in order to ensure the safety of your assets in the future, first of all.

When choosing a crypto exchange, pay attention to such things as round-the-clock customer support by email. Since the crypto market is new, you may encounter some unanswered questions and you need to contact the crypto exchange. Look for a cryptocurrency exchange with a responsive and attentive customer support service.

It may be very useful for you to choose a crypto exchange that offers a mobile application function. This is because accessing your account can be convenient and comfortable when you are on the go. Mobile applications are not only easily accessible, but also provide fast execution of transactions.

The best thing about cryptocurrencies is that they provide various ways to earn money. Apart from simple storage and trading, there are several other options that can be used. Exchange with fiat currencies, sale of NFT works of art, use of your own token and much more. It would be helpful if you were looking for a cryptocurrency exchange that offers more of these services so that you have more internal storage and trading capabilities.

What is a crypto exchange?

Crypto exchange is a platform for buying and selling cryptocurrencies. In addition to trading services, crypto exchanges also offer price determination through trading activities, as well as cryptocurrency storage. Before cryptocurrency exchanges, people could acquire cryptocurrency only through mining or by organizing transactions on various online and offline forums. Today, there are hundreds of crypto exchanges offering a variety of digital assets and various levels of security and related fees. You need to find an exchange and assets that match your specific needs, price range and security expectations.

What to pay attention to on crypto exchanges

We will write on the example of Binance, as practically the leading exchange.

Accessibility (largely depends on the country in which you live (e.g. China has banned the access of its citizens to crypto exchanges)). Another important thing to consider before choosing a cryptocurrency exchange is to find out if the exchange has a license to operate in Europe. This is due to the fact that not all crypto exchanges are allowed to operate in every country. Some of the popular European regulators are FCA, CySEC and CIMA. You can check whether the crypto exchange is licensed or regulated by any European regulatory authorities. Binance is the world’s largest cryptocurrency exchange by trading volume, which is available in many countries.

Safety

Before storing or transferring your cryptocurrency assets to your own wallet, the security of the exchange should be a key priority for you. You can see how many assets this exchange stores offline, in hard storage. This is even more important as the value of cryptocurrencies increases, because the greater the value, the more profitable targets for potential thieves.

The cryptocurrency market is relatively new and prone to hacking. Thus, global laws oblige each cryptocurrency exchange to request KYC information from each client. This “Know Your Customer” feature requires the customer to upload an identity card before opening an account on any cryptocurrency exchange. You can safely buy Bitcoin on the Binance exchange. The “vast majority” of Binance user funds and assets are stored in offline cold storage. In addition, Binance and many cryptocurrency exchanges also use other security measures, such as two-factor authentication (2FA), strict password requirements, anti-phishing methods and a white list of addresses. It would be better to look for crypto exchanges offering these security measures before choosing them.

Commission

Cryptocurrency exchanges usually charge a commission every time you deposit, trade or withdraw funds. Commissions range from 0% to 5% per transaction, depending on the payment method and the type of transaction. Commission levels are usually based on your total trading volume over a 30-day trading period, and the percentage you pay usually decreases as the size of your trades increases.

 

For example, if you exchanged tokens worth $ 1,000 for Bitstamp 15 times a month, the commission will be $75. But if you we made one transaction for $ 20,000, the commission will be only $ 50. P2p trading, such as Binance P2P, allows users to make transactions with bitcoins and other cryptocurrencies with zero commission. There is no commission for input on the Binance exchange. There is a fixed commission for each withdrawal, which is displayed directly when the currency is withdrawn.

Having a crypto exchange that supports various payment methods can be a convenient option. Since, depending on the method of depositing or withdrawing money, an additional commission will depend on this. You need to make sure that binance accepts different types of financing alternatives that suit your needs. One of the most common payment and withdrawal methods in the European sector are direct transfers from a personal bank account, electronic transfers and crypto deposits.

Liquidity

If you plan to buy, sell or exchange your cryptocurrency, there should be sufficient trading volume on your chosen exchange to ensure the relative liquidity of your assets. You can buy and sell Ethereum at any second, whenever you want. Again, this may be the case where size matters. Often, the most popular exchanges are also those with the largest trading volumes.

Markets are considered liquid when a trader or investor can quickly sell or buy a specific asset, which means that there is always a counterparty willing to trade. On the contrary, a market that is not considered liquid will require a trader to wait much longer until his order is finally executed. Binance, for example, has a liquid bitcoin market because there are always traders willing to buy or sell BTC, and the spread between supply and demand is usually very small.

Cryptocurrency Offer

Newer altcoins, coins with very small market capitalization, or meme coins may require a little more searching. Cryptocurrency exchange with what we could call

with traditional cryptocurrencies, it can be more convenient and profitable. There are more than 10,000 digital assets on the market, and every day there are more of them. However, you should find a crypto exchange that supports the most traded cryptocurrencies, because that’s what you will go for at the initial stage. Some of them are Bitcoin (BTC) and Ethereum (ETH).