Let’s take a broad look at cryptocurrency in general and how these sites perfectly intercept to fit into certain benefits crypto traders need.
Cryptocurrency exchange and investments
Cryptocurrency exchange and cryptocurrency investments are both digital activities that involve buying and selling cryptocurrency. Most times, the activities are done with the aim of making a profit. And can be carried out by experts or inexperienced investors in partnership with the right brokers or programs like crypto trading bots.
The cryptocurrency market gets new people trooping in occasionally because of the recent popularity cryptocurrency exchange and investments just gained.
Introduction to crypto trading sites
The crypto market works a lot like the physical stock market where people buy and sell funds as stock. However, in the crypto market, the funds bought and sold are in the form of cryptocurrency altcoins. The crypto market and stock market are both names for the generality of the trading process that goes on with the funds. Every market has meeting points. A way for buyers and sellers to meet and transact. Cryptocurrency trading sites are these meeting points for cryptocurrency buyers and sellers.
How do trading activities happen on trading sites? How do these trading sites carry out these activities? How do I join a trading site? And how do I even know what trading sites are good to join? All these are valid questions answered in this guide. So, read on to find the answers to your questions!
What are trading sites
While remembering the similarities of the crypto market and stock market, one must also remember the differences. For one, the stock market meeting points can be online or offline. But since cryptocurrency is only in digital form, it can only be traded online, so crypto market trading points can only be online. These online trading points are called crypto trading sites. Another notable difference between the stock and crypto market is the stock market deals with fiat money which is regulated or centralized. Cryptocurrency is decentralized, meaning there are no bodies governing prices. Demand is left to determine the rise and fall of prices.
Cryptocurrency trading sites are any websites or web pages that link buyers and sellers of cryptocurrency, serving as a platform for the exchange. They can be used for quick exchanges as is done in short-term investments or to finalize long-term investments. The latter involves selling cryptocurrency at a period where prices have risen as opposed to the price at which the investor bought the cryptocurrency.
Stock market trading points and crypto trading points also differ given that the internet never sleeps, and neither does the crypto market. The presence of physical or offline trading points necessitates the need for closing times because of factors like darkness and even staff. In order to balance the market online and offline and due centralization or regulation of fiat money, online activities also have to halt in the crypto market when offline activities do, even though the internet is always available. Without these limits of centralization and offline markets, the crypto market evades the need for closing, hence is available 24/7.
How do trading sites work
Trading sites are the platforms for buyers and sellers to meet up and put their transactions on the blockchain. To understand crypto trading sites, you must understand basic crypto trading and a few terms involved.
In simple terms, this is buying and selling cryptocurrency for a variety of reasons. You might be buying to keep the cryptocurrency or to resell at a higher price. The latter reason is usually a long-term investment. While crypto trading can be defined in simple terms, the nature of bitcoin causes a deeper process of crypto trading. Here’s what you need to know about crypto trading:
- The Blockchain. This is like a really long online record of crypto transactions shared by every crypto buyer and seller. All cryptocurrency exists on the blockchain, so the blockchain is also how you can tell well cryptocurrency has changed hands. The blockchain is called a blockchain because it records crypto transactions in ’blocks’. Every time a new transaction happens, there’s a new block to represent it.
- Private keys. These are similar to the pin of an ATM card or your signature on a check. They belong to owners of cryptocurrency and ensure that traders, especially sellers, approve of their crypto transactions. Usually, private keys are issued by crypto wallets as soon as a person signs up.
- Crypto wallets. Think of these like a bank account for cryptocurrency. They’re the record of how much cryptocurrency a person possesses. A lot of crypto wallets are also trading platforms because cryptocurrency exists on the blockchain and this is also where transactions are carried out. That is, if you wish to transfer ownership of the cryptocurrency you own or wish to receive cryptocurrency from someone else, you can do so with most crypto wallets.
From a basic perspective, these are the most important parts of crypto trading, hence crypto trading sites make use of all these. They could also possess other features like a way for you to monitor the market for changes in prices. Others work with crypto trading bots, which are computer programs that can evaluate the market and come up with profitable trading actions.
How to choose trading sites
While there are lots of trading sites with a bunch of cool new features, some things remain paramount for the proper operation of crypto trading sites. When looking out for crypto trading platforms, here are the universal features that make any crypto trading site a good choice:
- Security. A crypto trading site is a platform for you to buy and sell funds. Most of the time, this translates to a balance which is why a lot of crypto trading sites are also wallets. If you’re giving any platform access to your funds or even the chance to be your middle man in transactions, the platform has to be secure. Most trading sites acknowledge this and explain the site security on a page of the website. It’s okay to take their word for it. But you might also want to do a bit of research to reduce risks because it’s better to trust those with experience using the trading site so you can avoid all the problems they faced.
- Easy Use. This can manifest in features like the user interface and loading speed. A platform for you to buy and sell mustn’t stress you during the process, as this could cause warning bells to ring in yours. The poor user interface can make you scared you could press the wrong thing, perhaps a wrong amount, or choose a wrong transaction partner. Slow loading can make you fear that the transaction can time out. To avoid fears like this, go for a trading site that’s easy to use.
- Exchange Rates and Charges. Since trading sites are offering you a means to make a profit, they’re also looking to make a profit off of you. Using trading sites comes with certain costs. The costs could be for buying or selling cryptocurrency. Some sites charge for both, some charge for just one while there are a few who don’t charge at all. You should be wary of these free ones because most are scams who capitalize on the human need to minimize costs and maximize profit.
- Payment Methods. To own any cryptocurrency at first, you need to buy it for fiat money. Also, you might wish to buy some more cryptocurrency to increase your investments. The fact that you make a profit and want to withdraw the funds for use at everyday places where they don’t support the use of cryptocurrency also causes the intervention of fiat money. With the use of fiat money comes the existence of means of deposit and withdrawal. The trading site of your choice must support the payment method that’s most suitable for you. This could be credit/debit cards, bank transfers, or any online payment services.
Trending trading sites
Crypto trading sites have been around for a long time, some showing up just a few years after Bitcoin was created in 2009. Others are more recent, popping up this year because of the increased interest in crypto trading shown this year by people all over the world. The most popular ones with a great reputation and no question to their authenticity are:
Buying and selling cryptocurrency is one of the greatest passive income generators and there are even a few people who decide to take it on as full-time jobs. You can make a lot of profit from it, but you can also make massive losses if you’re not careful and you trade at a time when the market is against you. With the right education, the best crypto trading site, and a will to make some profit, you can change up your life in a little while. So, why don’t you try out a crypto trading platform today!