- Sep 23, 2021
To understand the exchanges that we are going to talk about, you will need to have an understanding of Cryptocurrency. A cryptocurrency is a decentralized digital currency that functions using cryptography (hence the name) as a security measure to regulate the generation of units and verify fund transfers.
It operates independently of a central bank. To put it simply, cryptocurrency is digital money that you send to someone over the internet and nobody can stop you (at least for now).
Cryptocurrency exchanges are online services that allow their customers to exchange fiat currency or cryptocurrencies into other cryptocurrencies or back into fiat currencies. There are also Cryptocurrency Exchanges that deal with the exchange of cryptocurrency for other assets like commodities (gold, silver) or stocks in publicly traded companies.
Exchanges tend to charge a commission fee per transaction made on the platform and many times have minimum and maximum limits on withdrawals. The entire cryptocurrency market exchanges over $100 Billion a day so there is an enormous amount of money that goes through these exchanges.
Many of these cryptocurrency exchanges are located in different countries, the bulk of them in China, the USA, and Japan.
How do you decide which exchange to use?
It depends on what country you live in and your personal choice.
First, you need to decide how much does it cost for you to exchange your fiat currency into cryptocurrency? If you have to pay more than 1% of the transaction value then that is not a good deal. You might even consider buying directly from an individual who listed themselves on some sort of forum like Craigslist or Localbitcoins.
Next, you need to look at the fees that they charge for exchanging back to fiat currency. You might want to have an account with several different exchanges so you can choose which one has the lowest fee if a certain exchange has higher fees than others when converting your cryptocurrency into fiat currency so as to ensure you are maximizing your profits through the Bitcoin Billionaire.
Finally, go on their website and see what countries are restricted from using their services. If you live in a country that is restricted that might not be convenient for you.
Top crypto exchanges
Two of the biggest Cryptocurrency Exchanges are Binance and Coinbase Pro (formerly known as GDAX).
Coinbase Pro is owned by the same company that owns one of the most popular digital wallets, Coinbase. Coinbase does charge fees when transferring fiat currency to or from your Coinbase Pro account.
There is a minimum and maximum amount you can transfer with a fee based on the region of the world you live in. It is Bitcoin that has the highest minimum fees (the higher fee goes up to 0.0025 which is about $6) while Ether and Litecoin have lower limits.
Coinbase Pro is also one of the most popular cryptocurrency exchanges and is highly reliable.
Binance is also a very large Cryptocurrency exchange with an extremely high volume of transactions every day. They have quick execution times for trades and charge trading fees (0.1%) on each trade conducted on their platform. There are no deposit or withdrawal fees.
The interface is slightly more complicated than some of the other exchanges so if you are a beginner in Cryptocurrency, it might be best to choose another cryptocurrency exchange like Coinbase Pro until you get used to how things work.
Binance and Coinbase Pro have periodic promotions where they will give away free cryptocurrency to their customers. Make sure you keep an eye out for those so you don’t miss out on a good thing!
If you live in the U.S. then Coinbase is a great choice and if you are looking for something more advanced then Binance is a far superior exchange. Just be aware of all the fees involved when conducting transactions or it could cost you a lot of money!