The first decentralized digital currency was Bitcoin, created in 2009. Since then, many other cryptocurrencies have emerged. They are often referred to as altcoins or alternatives to Bitcoin. Examples of altcoins include Ethereum, Ripple, and Litecoin.
Cryptocurrencies are often traded on online platforms and can also be used to purchase goods or services. So where to trade cryptocurrency today? Our answer here!
The Rise of Cryptocurrencies
The story
Cryptocurrencies have only been around for about 15 years, but they’ve already made a lot of noise. Bitcoin, the first and most famous cryptocurrency, was created in 2009 as a response to the global financial crisis. It is designed as a decentralized, peer-to-peer alternative to traditional fiat currencies.
The reason for its creation is to take power away from central authorities, such as banks and governments. Bitcoin was also supposed to be a more efficient way of transacting, as it eliminates the need for middlemen like banks or credit card companies.
Evolution
It was not surprising then to see the number of cryptocurrencies explode. Today, there are over 5,000 different types of cryptocurrencies, with a total market capitalization of over $1 trillion.
What started this boom?
The growth of cryptocurrencies is explained by several factors. First, there are more and more people who wanted to invest in cryptocurrencies. This is due to the growing awareness of the potential of these funds, as well as the increasing number of success stories.
Second, the development of new technologies has made it easier for people to invest in cryptocurrencies. In particular, the rise of blockchain has made it possible to create and trade cryptocurrencies without relying on a central authority.
Finally, the economic climate has been favorable for the growth of cryptocurrencies. With historically low interest rates and traditional investments losing their luster, more and more people are looking to alternative investments, such as cryptocurrencies. Is that still the case today? Find the suggested answer in this article.
In parallel, many cryptocurrency trading platforms have appeared. Let’s analyze this “exchange place” for cryptocurrencies in more detail.
Crypto trading platforms
Definition
Cryptocurrency exchanges are websites that allow you to buy, sell or trade digital currencies. These platforms usually charge a fee for each transaction. Some of the most popular cryptocurrency exchanges are Coinbase, Kraken, and Binance.
When choosing a cryptocurrency exchange platform, it is important to consider various factors.
Deciding factors
In this section, you will discover a non-exhaustive list of determining factors. We are particularly referring to the quality of the trading application, which cannot be addressed here.
Expenses
Fees charged by the platform may vary depending on the type of transaction. For example, buying and selling bitcoins on Coinbase will incur a 1.49% fee. However, if you trade other altcoins on the same platform, different fees may apply.
Some of the more common fees include:
- Trading Fees: These are charged when you buy or sell cryptocurrencies on the platform
- Withdrawal Fees: These are charged when you withdraw funds from the platform to your personal wallet
- Deposit fees: apply when you deposit funds on the platform
Safety and reliability
When choosing a cryptocurrency trading platform, it is important to consider the safety and reliability of the site. This is especially important if you store large amounts of digital currency on the platform. Some things to note include, for example, two-factor authentication and SSL encryption.
efficiency
The efficiency of the platform is measured by how quickly you can buy, sell or trade digital currencies. A good platform must also have these various important points:
- User-friendly and easy-to-navigate interface
- A menu with all available options and easily accessible
- List of all digital currencies available on the platform
Customer support
Before choosing a platform, it is important to evaluate the customer support offered. This is especially important if you are new to digital currency trading. A good platform should have an FAQ section and 24/7 customer support.
Top 3 crypto trading platforms
When it comes to cryptocurrency trading, there are a number of different platforms that you can choose from. Each platform has its own unique features and benefits, so it’s important to choose the one that best suits your needs. Here’s our current pick.
1. Coinbase
Founded in 2012, Coinbase is one of the most popular digital currency exchanges. It allows users to buy and sell cryptocurrencies and store currencies in an online wallet. It has an interface suitable for any profile and is known for its high security.
Coinbase also offers a mobile app that makes exchanging digital currencies on the go even more convenient. It also has a feature called GDAX, which allows users to trade cryptocurrencies on a more advanced exchange.
However, one of the downsides of Coinbase is that it only supports the following currencies:
- Bitcoin
- Ethereum
- Litecoin
- bitcoin-cash
2. The Kraken
Kraken is another popular cryptocurrency trading platform that also offers a very efficient interface. It supports a wide range of digital currencies, including Bitcoin, Ethereum, Litecoin, Monero and Zcash. Kraken also has a mobile app for remote trading.
One of the main advantages of using Kraken is that it offers low transaction fees (1.5%) and free deposit fees.
The only downside is that it can be difficult for a beginner to operate his platform.
3. Binance
Binance is one of the newer players in the digital currency exchange market, having only been founded in 2017. Despite this, it has quickly become one of the most active crypto exchanges, with more than 60 digital currencies offered.
Binance has a very simple user interface and also offers a mobile app for convenience. It also has low transaction fees and is one of the fastest growing platforms in the industry.
The only downside to Binance is that it does not offer Fiat-Crypto pairs, which means users can only trade digital currencies on the platform.
Conclusion
The number of cryptocurrencies jumped as soon as the famous Bitcoin was created. We had to find a place of exchange, which is materialized by crypto trading platforms.
Therefore, choosing the right trading platform seemed to be decisive. Apart from our choice, each platform has its advantages and disadvantages. This should be compared to your cryptocurrency investor profile. Finally, it seems important to remember that there is no such thing as a “perfect” platform and that each has its own functions.
