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Top Modern Rules Of Cryptocurrency Exchange | Coin Gabbar Blogs Trading

31 Jan 2022 By : Anirudh
Southeast Asia’s Lar


Kraken, CoinEgg, Binance, Gemini, and so on… No, these aren’t the names of some mythical creatures from ancient folklore. These are names of the top cryptocurrency exchanges that most investors trust and use for carrying out their trades. Digital marketplaces for buying and selling currencies that are also completely digital with no backing from any country, government, or central agency – it’s a concept that would have seemed completely alien about a decade ago. But today, cryptocurrency isn’t just an alt-form of stock trading – it is a multi-billion-dollar investment avenue that some believe to hold the power to destabilize global economies. The world has truly come a long way since 2009 when Satoshi Nakamoto first created Bitcoin.

Coming back to the concept of cryptocurrency exchange, we have now reached a point in the market where thousands of such service providers exist all over the world. And one needs to be extremely careful about selecting the right exchange for their trading needs. Here, in this article, we will explain everything there is to know about a cryptocurrency exchange and even help you choose the best one to help you on your tryst with the world of digital currencies.

What is a cryptocurrency exchange?

One of the first things that you must know and accept is that you cannot buy crypto stock directly with the money you have in your bank or with your investment firm. You will need to create an account with a cryptocurrency exchange in order to exchange your money (irrespective of its currency) with crypto coins. These exchanges act as platforms for facilitating all kinds of transactions in crypto. You can use their services to trade one crypto for another – like Bitcoin to Doge – or for buying crypto coins against the regular currency. Crypto stock can also be converted back into regular currency using these platforms.

What are the features of a good cryptocurrency exchange?

Accessibility

There are situations where your geographical location will prevent you from trading in cryptocurrency on certain exchanges due to state and national regulations. Countries like China have banned citizens from accessing crypto exchanges outright. Others have mandated exchanges to obtain certain licenses from the government for operation – a requirement that not all exchanges fulfill. Make sure you check whether or not the cryptocurrency exchange you have selected will be accessible from the location you are at.

Security

Crypto holdings aren’t backed or protected by any central authority like regular currency. To counter this issue, top cryptocurrency exchanges provide insurance covers on the holdings kept by investors on their platforms as a necessary protection against hacking or fraud. Make sure you select an exchange that offers similar protections for your fund to prevent any unpleasant surprises while trading.

Transaction Fees

The next important factor to consider when selecting a cryptocurrency exchange is transaction fees. Exchanges charge users on a per-transaction basis for their services. This cost will have a direct impact on your overall profitability and hence, you must carefully evaluate their fee structure while selecting the exchange of your choice.

Liquidity

Selecting the best cryptocurrency exchange for your trading endeavors entails evaluating each potential option on the basis of the liquidity they offer. If you end up choosing one with low trade volumes, finding the right buyers for your assets and vice versa will become more difficult.


What additional features should you look for in a cryptocurrency exchange?

Apart from the above, you must also consider the following add-on features as an extra incentive for choosing one crypto exchange over another. Here is a list for you to refer to:

·    Staking: Staking allows users with a certain minimum required balance in their accounts to actively participate in the transaction validation process for a blockchain in return for earning Staking Rewards.

·  Farming: This strategy is possible with Defi transactions wherein you can lend your cryptocurrency coins or tokens to get rewards in the form of transaction fees or interest.

·     Auto SIP Investment: This system allows users to schedule SIP investments in cryptocurrency based on certain pre-established parameters. Whether you are online and logged into the exchange platform or not, your transaction will go through automatically.

·   Bot Trading: Exchanges offer these automated transaction formats wherein computer software can be used to place trades in accordance with existing regulations. These systems help investors in taking advantage of market opportunities while cutting down time spent on monitoring.

These add-on features can make a huge difference in your life as an investor. Almost all top cryptocurrency exchanges offer these services to help users in making the most of the opportunities that the market has to offer. Try finding an exchange that offers all or some combination of the above features along with ease of use and low transaction charges. That is the Holy Grail that you should be after.


List of Crypto Exchanges to watch out for in 2022

The ever-increasing popularity of the crypto trade has resulted in a wealth of service providers in the field of cryptocurrency exchange. Here is a list of the best cryptocurrency exchanges that you can refer to while making your final choice:

Exchange Name

Fees

Minimum Account Balance

CoinBase

0.5-4.5% based on the type of transaction

$2

Gemini

0.5-3.99% based on payment method and platform

$0

BlockFi

$0 – the spread of about 1%

$0

Crypto.com

0-2.99% based on types of transactions

$0

EToro

0.75-2.9% that varies by different types of cryptocurrencies

$50

Binance

0.1-5% based on the payment method used

$10

Kraken

0.9-2% per trade

$0

Robinhood

$0 per trade

$0

TradeStation

0.30% or lower for large accounts

$0

WeBull

$0 per trade

$1

 

Conclusion

Your choice of cryptocurrency exchange can make or break your investment experience. Make sure you follow the above-mentioned tips to ensure the selection you end up with is the best choice for your requirements. All the best.


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