What is a crypto exchange? In short, it is an electronic platform where they trade in cryptocurrency – electronic money. As in traditional currency exchanges, the participants’ task is to make a profit, that is, buy at a lower price and sell at a higher price. Exchanges can only deal with transactions in different types of the fastest growing cryptocurrency (Bitcoin, Tether, Ethereum, Ripple, and others), or exchange electronic money for international currencies (dollars, euros, and so on). One can also combine the two.
How to choose an electronic platform
Making a profit does not depend on the site, but on your decisions, and the safety of your money depends on the exchange, which is important in such a high risk business.
First you have to pay attention to the size of the electronic platform. The larger it is, the more reliable it is. This is especially important for novice traders – small exchanges are not suitable for novices.
Focus on the jurisdiction
Regulated cryptocurrency exchanges are registered in certain countries and operate under their respective laws. It is clear that developed states with stable legislation and a good justice system are preferable to developing ones. Read reviews about the exchange: some of them may turn out to be just paid advertising, but you can get the general idea. Feedback can be found on Bitcointalk, Reddit, or miningclub.info.
What is required to register on the exchange?
The registration procedure may differ from platform to platform and may change over time. The main thing is you must provide personal data and confirm it. Somewhere in the process you will be asked to send an email address, phone number and a scan of your passport. On another platform, you may also need to take a photo with a passport in your hands. On the stock exchanges of some countries (where this is required by local law), you need to confirm the source of funds and their purity: send a 2-NDFL certificate or a contract for the sale of a property.
What to pay special attention to
When studying these platforms, pay attention to:
– the price of the cryptocurrency you are interested in;
– the % of the commissions. If the exchange charges a high fee for each operation it will be very difficult for a novice trader to make a profit. Calculate in advance whether a transaction will be profitable after deducting the commission;
– withdrawal limits. If you are allowed to withdraw only $100 per day, this is inconvenient. In the initial stages, when the profit is still low, this may seem insignificant. But once you start increasing your earnings, the restrictions will be an obstacle;
– minimum threshold for replenishment – evaluate whether the amount is feasible for you;
– does the exchange work in Russia. If not, you simply won’t be able to conduct trades there.
Commissions and limits on exchanges
Commissions and limits on cryptocurrency exchanges differ in their variability. To have an idea of these numbers, you need to analyze the data of the more popular sites.
This is what you need to know about the TOP cryptocurrency platforms today. To find out more information, you need to visit the official website of the platform that is suitable for you.