Cryptocurrency Exchanges are websites where you can buy, sell, and exchange different cryptocurrencies for other digital currencies or traditional currencies such as US dollars. If your goal is to professionally exchange currencies, there are tools that are designed to facilitate the trading and these accounts requires you to verify your account. These accounts are known to have higher security.
Generally, there are three types of exchange platforms that is,
- Trading platforms where the buyers and sellers are connected and there is a fee charged from each of these transactions.
- Direct trading platforms. These platforms enable people from different parts of the world to exchange the currency. With these platforms, there is no fixed fees and each seller can set their own transaction fees.
- Cryptocurrency brokers. In these websites, there is a price set for each currency and anybody can get in the website and buy or sell at the set price. Cryptocurrency brokers are just like the foreign dealers.
There are many exchange platforms that are available and choosing the right one is a very hard decision. You need to make a lot of considerations and below are some of the things that you should always lookout for when getting the right exchange.
- The reputation of the exchange platform.
The best way to know about the reviews of a platform is to go through the reviews and know what other customers are saying about that specific platform. If you are unsure of the exchange, you can join cryptocurrency platforms such as bitcoin talk and ask questions about the exchange.
2. The fees.
Each exchange platform has its own transaction fees. Before joining any exchange platform, it is very important to understand the fees charge and ensure that you are comfortable with the fees.
3. The geographical restrictions.
A lot of exchange platforms only works at some parts of the world and you might join a platform and end up regretting because it is not covered in your country. Your exchange platform should offer full access of the platform in your geographical area.
4. The exchange rate.
Platforms and brokers have different rates and the owners of these platforms mostly set the rates. Research on the different rates in different platforms and settle for the one that has the friendliest rates.
Above are some factors that you need to consider when settling for the right cryptocurrency exchange. The bottom-line is that you should seek to gain as much as you can, whether short term or long term.