Bitcoin was the first cryptocurrency to work on a decentralised system, but it was soon followed by other cryptocurrencies and there will no doubt be more to come in the future. A cryptocurrency exchange is an online location where users can buy, sell or trade cryptocurrencies for other cryptocurrencies or national currencies too. The significant difference with a cryptocurrency exchange is that it is a decentralised system that simply acts as space where the buying, selling and trading of cryptocurrency.
There are a number of different cryptocurrencies available on the market today, some of the popular ones include:
There are a number of cryptocurrency exchanges available online to date, some more reputable than others, which makes it important to choose the right one for your needs.
Guide To Choosing The Best Cryptocurrency Exchange
Consider a few key points before selecting your cryptocurrency exchange:
- Reputation – is the cryptocurrency exchange you are opting to use a reputable source and does it have a positive, traceable track record?
- Location – is it your preferred local exchange and if not, are there restrictions for using it based on your geographical location?
- Pricing – cryptocurrency exchanges can have their own pricing schemes. Make sure you research your options before choosing your service
- Exchange Rates – as with the above point, exchange rates can vary from one cryptocurrency exchange to the next. Check these out before you choose to buy, sell or trade bitcoins and other cryptocurrencies on a particular platform
- Available cryptocurrencies – not all cryptocurrencies are supported by all cryptocurrency exchanges. You might want to sell bitcoins and buy ethereum, so make sure the platform you want to use can manage these expectations
It’s important to note that premium security is a feature that users should seek out when choosing a cryptocurrency exchange. While the decentralised open ledger system of the blockchain cannot be hacked, there are peripheral businesses that can and have been hacked due to negligence. This is another reason why it’s best to opt for a platform that has endured much success and that works with an open, transparent and proactive reputation.
Refer to the currency exchange page for more information.