Bitcoin, Bitcoin Cash, Ripple, Ethereum, and Litecoin – they’re all the rage right now. And while some call cryptocurrencies a fad or a scam, it is only a matter of time before everyone hops on board. Cryptocurrencies are a big thing these days. In fact, it’s safe to say that cryptocurrencies are becoming mainstream. Whether you’re interested in purchasing your first cryptocurrency, or you're asking yourself, "what crypto exchange should I use" you’ve come to the right place. This guide explores what cryptocurrency is, how to start investing in it, and how to choose the right crypto exchange for you.
How to Start Investing in Cryptocurrency
If you're looking to invest in cryptocurrencies, you might be asking yourself the following questions: What crypto exchange should I use? Which cryptocurrencies should I invest in? How do I even start? However, before answering these questions, let's first understand how cryptocurrencies work.
Cryptocurrencies are still quite misunderstood concept. The primary feature of cryptocurrencies is that they are not issued by a centralized authority and are instead “decentralized.” This means that no single entity can be held responsible for the value of the currency or that it can freeze or seize your assets.
Blockchain technology underpins cryptocurrencies, allowing transactions to occur directly between parties without the need for a trusted intermediary like a bank or payment processor. Every time a transaction is made, it is recorded on a public ledger called the blockchain, maintained by a decentralized network of computers called nodes. Each cryptocurrency has its own blockchain and a set of rules that outline how the currency is created, distributed, and managed. Because these rules vary from cryptocurrency to cryptocurrency, each has its own value and demand.
Where to Buy Crypto?
The best way to buy and sell cryptocurrency is through crypto exchanges. But how do they work?
Cryptocurrency exchanges are online platforms that let you buy, sell and trade digital assets. They provide a medium for individuals and companies to buy and sell cryptocurrencies to one another. As the name suggests, crypto exchanges are platforms that allow you to exchange cryptocurrencies for other currencies.
There are two main types of crypto exchanges: those that accept fiat currencies and those that do not. For example, Coinbase is a fiat-to-crypto exchange, which means that it accepts fiat currencies like US dollars and Euros in exchange for crypto coins like Bitcoin (BTC), Ripple (XRP), etc. However, some exchanges only allow for crypto-to-crypto trading.
If you’re new to the world of cryptocurrency trading, then a fiat-to-crypto exchange is probably your best bet. You can fund your account with bank transfers or use your debit or credit cards to make quick deposits in your main currency.
The Biggest Cryptocurrency Exchanges on the Market
The biggest crypto exchanges on the market right now are:
Binance: According to Statista, Binance is the biggest crypto exchange on the market in 2022, with a 24h trading volume of $11.5 billion. Binance is one of the crypto exchanges with the lowest transaction fees.
CoinFLEX: CoinFLEX is the 3rd biggest crypto exchange on the market in 2022, with a 24h trading volume of $6.11 billion. It is a competitive exchange with affordable fees and a user-friendly interface.
Coinbase: Coinbase places itself in 8th place in Statista’s ranking of the biggest crypto exchanges in 2022, with a 24h trading volume of $2.38 billion. Coinbase is a good choice for beginners, thanks to its easy-to-use interface.
Kraken: Kraken supports more than 110 different cryptocurrencies to buy and sell with ease through its trading platform, which also has a mobile app. It claims to offer some of the lowest fees on the market today.
Gemini: Known for its security standards, Gemini is one of the most trusted exchanges in the industry. Founded by twins Cameron and Tyler Winklevoss, it offers users an easy way to buy and sell cryptocurrencies.
How to Choose the Right Exchange for You?
If you’re asking, "what crypto exchange should I use" there are several criteria that you need to pay attention to before making a choice.
1. Trading Limits
One of the main factors to consider when choosing a crypto exchange are trading and withdrawal limits. These limits may be due to the exchange's policies or the applicable laws and regulations.
2. Transaction Fees
Each time you buy or sell cryptocurrency, the exchange charges a transaction fee. The transaction fees will differ, depending on the cryptocurrency, the exchange itself, and the volume of the transaction.
3. Liquidity
If you want to buy a large amount of crypto, you may need to look for an exchange that has high liquidity in the coins you want to buy, meaning there are many people buying and selling it at any given time.
4. User-friendliness
Many exchanges have a steep learning curve if you're unfamiliar with trading terminology or how crypto markets work, which means newbies can make costly mistakes. If you're new to the world of cryptocurrencies, you want to start with a crypto exchange that is easy to use.
5. Security
The first question you should ask before choosing a crypto exchange is: Is this exchange safe? After all, there have been plenty of horror stories about exchanges getting hacked and traders getting their coins stolen. Therefore, the most important thing when choosing the right crypto exchange for you is security. You want your funds to be protected and safe from hackers, so make sure the exchange has a good reputation for security.
Nextinter Exchange is Your Best Choice
If you have finally decided to invest in cryptocurrencies, you need to find a reliable exchange that not only offers you a wide variety of trading options with the lowest fees but that is also secure and easy to use. So, you might be wondering, “what crypto exchange should I use.” The answer is the Nextinter Exchange!
Nexinter Exchange is a compliant fiat-to-crypto exchange with an easy-to-use, powerful interface. As a fully regulated fiat-to-crypto exchange, Nexinter provides traders with a transparent exchange that charges low fees. The Nexinter Exchange is designed to provide you with a convenient, safe, and fast environment to buy, sell and exchange various digital assets. Sign up now and start trading crypto at the lowest fees!