Investing in Bitcoin can be nerve-racking at first since no one wants to lose your investment. Whether you want to buy or trade frequently and hold long term. You need to use the most reliable exchange when trading or investing in Bitcoin.
Here are 2020’s topmost cryptocurrency exchanges.
Coinbase is a licensed and fully regulated cryptocurrency exchange. It has licenses to operate in 40+ U.S. territories and states. One of the best things about the platform is its high liquidity. Coinbase offers a wide range of altcoin choices. It has an easy, user-friendly interface. However, Coinbase has its fair share of cons as well. One of these is that the platform’s selection of altcoins is quite small compared to other exchanges.
Coinbase, however, offers insured custodial wallets where you can store your investments. But this insurance doesn’t apply if your account was compromised due to your own doing. The platform’s insured custodial wallets are ideal for new users. However, you don’t have control over your wallet because the private keys are owned by Coinbase. You can also try the free Coinbase Pro version. It offers more indicators and charts and has a cheaper fee structure. Coinbase Pro is ideal for users who are already familiar with Coinbase and how it works. If you want more information regarding this, you can go through the starofmysore.com to better understand it.
Cash App allows users to invest in cryptocurrency, stocks, and ETFs. It’s ideal for first-time investors because it uses a mobile-first interface, which makes it easy to use. Cash App also allows users to withdraw cryptocurrency. Aside from this, you can use Cash App to pay rent or shop online at retailers that support the system. Users can also get their own Cash App debit card.
If you want to invest in lesser-known altcoins, you should consider using Binance. The platform offers almost 600 trading pairs between various cryptocurrencies. Binance also offers fiat and crypto pairs. The platform currently dominates the global exchange market. Binance doesn’t allow for USD deposits, but it does allow users to directly buy a certain number of crypto using a debit or credit card. The platform is also ideal for those looking for more advanced charting.
Bisq is a downloadable peer-to-peer decentralized crypto exchange and software. It’s non-custodial, so no one other than the account owner can access the user’s funds. Bisq can be accessed through smartphones or computers because there’s no Know Your Customer (KYC) rule or registration process. This makes the platform ideal for those who don’t have government-issued identification or want to maintain their privacy.
Bisq allows users to trade different fiat currencies such as USD and Bitcoin. The platform’s peer-to-peer characteristic and decentralized network can mean slower transactions and low trading volumes, but the security it offers makes Bisq well worth it.
Types of Cryptocurrency Exchanges
There are two kinds of exchanges – decentralized and centralized exchanges. Decentralized exchanges are not regulated by any entity. As such, this kind of exchange cannot be seized or controlled by any regulatory body. Users can come and go anytime. They are not required to declare their identity when trading.
Centralized exchanges, on the other hand, require identification and registration. Popular examples of centralized exchanges are Binance and Coinbase. Centralized exchanges are subject to the KYC rule. The crypto exchanges mentioned have high liquidity, active trading, and high volumes. However, these exchanges don’t correspond with Bitcoin’s philosophy. Centralized exchanges have private servers that are susceptible to malicious attacks. If the company’s servers are attacked, the entire exchange could be shut down. Sensitive data about the users could be leaked as well. If you’re using a centralized exchange, you should practice safe storage at all times and withdraw large sums immediately.