There is a general note that once we hear cryptocurrency exchanges, the first thing that come to our mind is Platform for trading several other Cryptos.
That's true, but it may interest u to know that there are some wallet that also serve as an exchange
Let me take the key points here;
Exchange is the art by which goods A is giving out for good B upon a prefined agreement.
The agreement here means price agreement
A popular wallet we know is also an exchange (blockchain.info). It was first design to be BTC wallet only, but now we have 3coins storable in the wallet.
With that, there is now a platform which enhance exchange from one crypto asset to another I.e u can exchange BTC for ETH on block chain ,upon price agreement, it's the exchange helps us to achieve that.
Back to the conventional crypto exchange we have
The basic knowledge is that exchange is a platform which several coins can be traded with other pairs of cryptocurrency. We have a good numbers of crypto exchange.
We have Binance, Cryptopia, Bittrex, Yobit, Mercatox, Bleutrade, Okex, kucoin, B2Bx, Bitmex, Bitfinex, and so many other exchanges
There exist over 400+ diff exchanges across the globe.The question is which exchange is best to trade on since u can trade on all the exchange.
That's will lead us to the choice of exchanges for trading.
Before you select an exchange, you need to consider the following
1. How secure is the exchange is
2. Trading Volume on the exchange
3. availability of several coin (options)
4. Trading options And so on
The above mention are the most important ones. I
Will take them one after the other
The most important thing to question before u register on exchange is security. Then u consider the volume of money trading on the exchange
Trading on an exchange with a volume less than 1btc is more risky than ones training with 500btc volume and above
Next is trading options
Some exchange make provision for margin trading (where I trade with leverage and liquidation)
While some don't have the margin trading option
Example of this is Bitmex/Bitfinex (margin options exchanges)
And exchange like binance, bittrex ,etc are conventional trading exchange that do not give options for margin trading.
Now, we move to registering on an exchange.
First, u get the correct URL of the exchange.
Register with ur email and set ur preferred password
Set ur security (2fa esp)
Once that is done, u can move money to your exchange to begin trading
It should be noted that, not all coins are listed on all exchanges,
That might give rise to u opening several other good exchanges to take advantage of (such as arbitration and etc)
So, any coin you wanna trade and it not in the exchange you are using, it is allowed to open the exchange that will has listed the coin.
The activities that goes on on a crypto exchange are as follows:
Buying/selling
Deposit/withdrawal
Placing of order (limit/stop loss)
Without the exchange trading alts cannot be very seamless and this easy
My recommendations for exchanges to get registered on are as a newbie are
Binance.com
Bittrex.com
Mercatox.com
Cryptopia.co.nz
Livecoin.com
Coinexchange.io
I hope this thread educate newbies on the fundamental of cryptocurrency trading.
Thank you.
Topic: USING CRYPTOCURRENCY EXCHANGES AND THEIR MARKET (Read 75 times)
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