What are exchanges in cryptocurrency?

Exchanges in cryptocurrency are important during trading or investing in cryptocurrency. People lose money often and there are scams as well. Scams have happened in the past and scams are currently happening as well. Investing in cryptocurrency has never been easy. For the safety of crypto trading, there have been a lot of advancements.

Security and safety are the top concerns when one wants to trade or invest in bitcoin. For this purpose, it is necessary that you have the knowledge about exchanges that help you trade in bitcoin easily and safely.

Name of exchanges in cryptocurrency:

Down below we will be providing you a list of some popular and secure exchanges that provide you the ease of trading bitcoins.

We will start from the exchange that is good for beginners and then we will move on to more advanced level.

1) CashApp:

CashApp is considered as the best exchange for beginners who are new to the task of trading and investing. Just like Venmo, it is a peer-to-peer transfer system. User can shop online, or pay rents at any retailer store which supports CashApp. Just like banks, CashApp also provides the account holders with a debit card.

  • Fees: For every transaction, a service fee is charged by CashApp
  • It provides the facility of investing in stocks.

Pros of CashApp:

  • Money transfer is peer-to-peer
  • The ability for withdrawal of bitcoin
  • User interface is simple and it is good for the beginners.

 

Cons of CashApp:

  • You can only invest in bitcoins
  • It charges 3% when you send money through a linked credit card
  • In 24 hours, you can withdraw up to $2000 worth of bitcoin

2) CoinBase:

The most used and popular bitcoin exchange in United States is coinbase. Conibase was founded in 2012. It is a licensed and fully regulated cryptocurrency exchange. Currently it is is operating in 40 states of USA.

  • Fees: According to the dollar value of purchasing, it can charge from 0.99 – $3.00
  • There have been less to no controversies around coinbase
  • The exchange is much easier
  • Gives custodial wallets to investor and traders for storing the investment

Pros of CoinBase:

  • User interface is very simple
  • Liquidity is very high
  • Variety of altcoin (alternative coin) choices.

Cons of CoinBase:

  • Coin fees is high when you do not user CoinBase Pro
  • Wallet keys are not controlled by user.

 

3) BINANCE:

This exchange is strongly focused on altcoin trading. Binance was founded in 2017. 600 trading pairs are offered by binance between different cryptocurrencies.

  • Fees:1% for both taker and maker. Trade volume is scaled down to 0.02%
  • If you use native cryptocurrency of binance, then the fees is lowered by 25%
  • Global exchange space is currently dominated by binance.
  • US dollar deposits are not allowed directly however, it helps you in purchasing different cryptos using debit or credit card.

Types of cryptocurrency exchanges:

  1. Centralized exchange
  2. Decentralized exchange

1) Centralized exchange:

The most common type of exchange is centralized exchange. The exchanges namely Coinbase, Binance, Kraken fall in this category. Registration and identification are required as per know your customer rule.

2) Decentralized exchange:

It is same as Bitcoin. There is no point of control. It can be assumed as a computer network having different computers attached to it. If we turn of one computer, it will not affect the entire system. Other computers will continue to run.