How to choose a cryptocurrency exchange, and which is the best exchange for beginners?
For newcomers to the cryptocurrency market, the fastest way is to trade from cryptocurrency exchanges, but the recent “black swan event” encountered in the bear market has caused us to see the collapse of some crypto venture capital institutions and exchanges, So how can you choose a crypto exchange that is best for beginners?
1. What is a virtual currency exchange (cryptocurrency exchange)?
The currencies we use in daily life (Taiwan dollar, new currency, euro, dollar, etc.) are called legal currency, and they are all issued by the government or the central bank, while cryptocurrencies (or cryptocurrencies) are not issued by a specific country or region, and can be issued by all countries. Universal Universal does not need to be exchanged, it can transfer money around the world without paying high handling fees, and it does not need to be exchanged back and forth between many banks and currencies of different countries. It is a currency that allows assets to move freely.
Currency must be liquid. A virtual currency exchange exists to improve the liquidity of virtual currency, that is, to provide a centralized market for virtual currency, which allows greater liquidity, reduces transaction costs and makes the transaction process more secure. According to different operation modes, cryptocurrency exchanges can be divided into centralized exchanges (CEX) and decentralized exchanges (DEX).
Centralized Exchange (CEX, Centralized Exchange)
The investor’s currency will be kept in the exchange when it is traded. Daily transactions are bought and sold in the database of the exchange, not on the blockchain. Therefore, the virtual currency will only be obtained after the investor withdraws. The risk is because the exchange database stores a large amount of virtual currency and is also more vulnerable to hackers.
Decentralized Exchange (DEX, Decentralized Exchange)
The buying and selling behavior of decentralized exchanges happens directly on the blockchain, not in the database of the exchange. The advantage is that the exchange does not hold a large amount of virtual currency, and the transaction information is open and transparent. The advantage for investors is that the exchange does not directly control its own assets, but because it is still a non-mainstream trading channel, the currency liquidity, transaction volume, and user volume are very low, and it is not so convenient to operate.
Can I invest in cryptocurrencies without going through an exchange?
We discussed above that buying Bitcoin on CeFi or DeFi exchanges is obviously the most direct way to hold cryptocurrencies, but if this method exceeds your risk tolerance, you can actually invest in cryptocurrencies indirectly through other methods.
2. How to choose a virtual currency exchange?
Compliance License
At present, virtual currency has different regulatory systems in various countries, and virtual currency transactions are also included in the scope of financial supervision. Therefore, when choosing an exchange, ensure that the exchange has a local compliance license and complies with local regulatory policies.
Compliance with regulations
Virtual currency trading is still a high-risk transaction. Because it is very new and the nature of virtual currency tends to be decentralized and not centrally managed, countries have already introduced relevant regulations to regulate the cryptocurrency market. Compliance with regulations means that investors’ funds can be Get more security.
Security capability
Major exchanges have experienced hackers and suffered losses. Whether or not they can protect customer assets depends on the size and technical strength of the exchange itself.
User experience
Excellent exchanges pay more attention to trading experience and services. Whether they have a complete customer service system and the ability to deal with problems in real time are important criteria to test the back-end capabilities of the exchange.
Fair trade
Excellent transactions should pay more attention to transaction fairness, and there should be no malicious operations such as pin insertion, shutdown, and unplugging. They should have comprehensive price disclosure capabilities, and ensure the safety of users’ funds.
3. What is the best exchange for beginners?
For beginners, it is a common choice to choose a comprehensive exchange at the head, but many newcomers often do not know how to start trading, and blind trading at the beginning can easily lead to losses, so how to choose an exchange that is most suitable for beginners Well, here are the factors to consider:
Powerful and secure system
If a professional trader can lead newcomers to open orders, they can help newcomers experience the charm of trading faster and get started, then they can achieve “lay down and make money” and achieve passive income. In addition, there are also weekly recommendations for traders’ real data analysis, which are more worthy of reference for newbies.
For many beginners, it is very likely that they have never traded in any trading market before. They may be confused when they first enter the cryptocurrency exchange, do not know how to start, play with their real money and worry about accidentally opening a wrong position and causing funds If you lose money, then if there is a simulated gold trading mode for beginners to choose from, you can quickly familiarize yourself with the trading mode and method.
Super discount on handling fee
Some people say that every transaction just costs people a lot of money. For beginners, if you can choose an exchange with a low fee rate, you can save a lot of fees.
Innovative and low-threshold financial management activities
Many comprehensive large firms have formed professional models, but for newcomers, many investment thresholds are inevitably too high. Newcomer welfare activities such as blue-chip NFTs with low thresholds and 18% flash financing in seven days are more suitable for newcomers to get started quickly.
Safe and Compliant Infrastructure
No matter which exchange you choose, security is always the first consideration. Hackers are infested in the cryptocurrency market. For beginners, choosing an exchange with strong security technical capabilities can ensure the safety of their property.
Based on the above, we recommend that beginners can start from Bybit exchange, pay attention to safety and compliance, and pioneered the documentary trading system since 2018, and have a solid base of traders and community fans, and there are often ultra-innovative low thresholds. Investment and wealth management activities, 24-hour online customer service and timely response, these are features that are more suitable for beginners than comprehensive exchanges. Come and register with a cryptocurrency exchange.
Ranking of Best Cryptocurrency Exchanges
For investors who are looking for a Cryptocurrency exchange to invest with, we are here to provide you with the latest ranking of Cryptocurrency exchanges.
The following 3 best and the largest Cryptocurrency exchanges are all very competitive and offer you the best possible conditions to invest in Cryptocurrency markets.
- Bybit
Crypto trading experience elevated. Buy, sell, trade BTC, altcoins & NFTs. Get access to the spot and futures market or stake your coins securely. - Binance
Binance operates the worlds biggest bitcoin exchange and altcoin crypto exchange in the world by volume. - Bitpanda
Trade in minutes from only €1. Your No.1 European broker for stocks, crypto, indices, ETFs and precious metals. Trade 24/7.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...