Cryptocurrency exchanges are the first phase of cryptocurrency investments. They play a major role in making cryptocurrency investments. There are many cryptocurrency exchanges in the world. Depending on their services and investment options you can decide which exchange you want to avail. Cryptocurrency exchanges are mainly used for trading cryptocurrencies.
You can sell, buy and hold cryptocurrencies through cryptocurrency exchanges. To make it simple, the cryptocurrency market is just like the stock market and cryptocurrency exchanges are like stock exchange platforms that allow you to make investments in cryptocurrency or trade one cryptocurrency with another. Unlike other intermediaries, cryptocurrency exchanges do not charge large commissions for processing the cryptocurrency transactions.
Every exchange is slightly different from one another in the terms of services. You can select the exchange that suits your needs in the best way. Some cryptocurrency exchanges allow you to keep your cryptocurrency stored in your wallet. This privilege is mostly absent in many cryptocurrency exchanges. Only some of the cryptocurrency exchanges provide absolute flexibility with the cryptocurrency investments.
Signing Up With a Crypto-Exchange
In order to sign up with a cryptocurrency exchange, you need to own a wallet first. There are different kinds of wallets. They can be mainly bifurcated into two types - Hardware Wallets and Software Wallets. There are different companies that offer cryptocurrency wallets and each wallet provides you with options to select from a set of cryptocurrencies and cryptocurrency exchanges.
Once you register your bank account details with the cryptocurrency exchange, you will be able to make a trade with any cryptocurrency that you want. Exchanges not only you to make investments but also provides pointers and vital pieces of information through which you can flair up your investment game. Cryptocurrency exchanges could be a great source of investment guides sometimes.
Many people ask, “how to liquidate Bitcoin?” when they are making investments in Bitcoin. We must inform you that it is not possible to convert any cryptocurrency into fiat currency anytime you want, at least not directly. You can invest your cryptocurrency in a blockchain and grow your cryptocurrency just like that. However, the cryptocurrency exchange that you are using, it can help you to find a buyer in the market.
Crypto-Wallet and Exchanges
You can make a deal with the buyer and sell your cryptocurrency in exchange for fiat currency the buyers are offering. After that, you can withdraw that fiat currency or exchange it with a different fiat currency of your choice, then finally withdraw. Some crypto-exchanges would charge a certain amount for processing the conversion. It is not always necessary that you would never need to pay for owning a crypto-wallet.
Some wallets do not charge you for holding cryptocurrencies but they will certainly charge you while selling and buying cryptocurrencies. It is just like banking, the only difference is that your banking with cryptocurrencies instead of fiat currencies. Also, the biggest difference is that you won’t be answerable to any government authority for making these transactions.
Some crypto-exchanges give you the privilege to keep your identity anonymous. You do not need to reveal your true identity while making transactions. Instead, you will be given with highly encrypted credentials that will allow you to access your account and make transactions. Most people are concerned about GDAX and Binance crypto-exchanges. These two crypto-exchanges are considered one of the elite and renowned cryptocurrency exchanges in the world.
Transactions Free in Crypto-Exchanges
The processing fee of these exchanges are less than other exchanges plus, they offer better services too. That is why these 2 cryptocurrency exchanges are deemed worthy for making crypto-trade all over the world. What concerns the investors the more is the processing fee, especially GDAX to Binance Fee. No doubt, the trading fee is as low as 0.1% to 0.3% in these crypto-exchanges.
On a much serious note, we would urge you to check the trading fee of every crypto-exchange before making cryptocurrency transactions. If you are looking for reliable and trustworthy cryptocurrency exchanges, the chances are, you could be levied with a notable amount of trading fee but still it is far better than stock-market exchange fees. Cryptocurrency Business is becoming one of the top-notch venture options in the financial industry.
Conclusion
However, you must be conscious of your investments at every turn. It could be a dodgy business. You can’t expect the things to go in a streamlined manner. You should be ready to face dramatic ups and downs in the crypto-market. Crypto-Business could turn out to be much more lucrative only if you know when and where to make your investments.
The best way to make a trade is to put your cryptocurrency in blockchains where the chances of its growth would be much better. Last but not least, be aware of the scammers and fraudsters in the crypto-market. Check the documents properly before making any decision. Crypto-investments are subject to high-risks and they are highly volatile.