28 January 2022
Satoshi Nakamoto launched Bitcoin to offer the world an alternative payment method. Though accepted with skepticism at first, cryptocurrencies have managed to liberate the global financial sector.
Above all, crypto assets enable cheaper and less expensive transactions. As a safe and robust substitute for fiat currency, they can soon become the primary mode of exchange. Moreover, cryptocurrencies operate beyond the reach of central authorities, and every individual can access crypto markets freely.
This article discusses the growth of crypto exchanges and everything you need to know about this trading method. It also pinpoints the best fiat to crypto exchange alternatives.
The popularity of digital currencies notes an upward trend. The demand grows even more significantly as use cases multiply. Unlike at the onset, when people used to mine and trade crypto on online forums, today is a lot more different. Exchanges operate as established platforms where interested investors can buy, sell, and store cryptocurrencies.
January 2010 marks the beginning of the first crypto exchange. At that time, Bitcoin traded for only $0.05. However, numerous other exchanges have soon started to amass. Other cryptocurrencies emerged, and with competition, prices experienced an upsurge.
But the growth path has been thorny. Crypto exchanges have faced many barriers and challenges on the way to triumph. More precisely, a few dominant platforms collapsed, and others suffered losses or crypto volatility. Frequent hacking has been a critical issue for most trading platforms, too.
For instance, although Bitcoinmarket.com was a pioneering exchange, it shut down due to market issues. Similarly, MT. Gox was once the predominant Bitcoin exchange. However, it suffered an unprecedented hacking attack and lost thousands of BTC, which led to bankruptcy.
Fortunately, developers have quickly learned from their past mistakes. As a result, crypto exchanges have evolved to become resilient to troughs and rebound after crashes. Platforms have also grown to accommodate the ever-growing crypto market needs.
Crypto trading platforms have frequently come in and out of use. But some have managed to thrive through the years. What’s their philosophy, and how did they survive the harsh competition? Let’s consider the most popular exchanges investors can engage in today.
Operating as of 2012, Coinbase is one of the best fiat to crypto exchange options. It offers a safe web wallet and high-profile cryptocurrency services. Thanks to the credible, well-insured, and easy-to-use interface, Coinbase has established itself as a true market leader. Traders can use bank accounts, wire transfers, e-wallets, debit, and credit cards to purchase digital assets. Some of these payment means are instantaneous, while others take longer but involve fewer fees.
Though Binance launched in 2017, it has become one of the most reputable crypto exchanges. Due to its excellent security record, many seasoned users rely on the robust features to trade and store assets.
Binance accepts a few payment methods, yet credit cards enable the fastest transfers. Users can choose to sell or purchase from nearly 200 different cryptocurrencies. As with Coinbase, you must get your identity verified first to start trading, but fees are lower.
Crypto.com is a solid exchange that takes multiple payment means at affordable fees. The platform has a native digital asset and wallet for storing over 150 supported cryptocurrencies. Moreover, Crypto.com offers several ways to earn digital assets or interest. For instance, its Visa card provides 8% cashback in CRO tokens.
For traders, it is vital to choose a crypto exchange that matches their investment goals. Below, we explain the features and operation methods of the three exchange types.
• Centralised exchanges are most common due to the simple processes and smooth interface. A central entity governs and validates every order to ensure it’s legal and secure. CEXs offer fiat-to-crypto and crypto-to-crypto trading, but funds remain in wallets managed by the central body. The signup process involves a KYC process requiring personal details.
• Decentralised exchanges involve no central oversight or governing institution. Trades run via secure smart contracts and decentralized apps based on pre-defined metrics. Though users don’t need to share personal information, customer support may lack. Also, assets face higher volatility, while the speed and volume of transactions fall behind.
• Hybrid may be the best fiat to crypto exchange option as it combines the strengths of CEXs and DEXs. These exchanges strive to grant users complete control over their funds and access to private keys. They also aim to address the scalability issues and high trading fees of DEXs.
Digital assets can be a lucrative investment opportunity. Yet, traders risk losing money if they rely on unproven exchanges and cryptocurrencies or fail to recognize scammers. Below we consider a few things you must be cautious of before engaging in the crypto market.
Profit-making investors have a sound trading plan. They often set limit orders for selling digital assets once prices reach a predetermined level. You can also copy the moves of experienced traders.
Cryptocurrencies are volatile and often fluctuate without any notice. Typically, crypto investors buy more assets when their prices hit low values.
The Internet abounds with investment schemes that promise massive returns from unknown crypto assets. Moreover, scammers thrive on inducing fear of missing out or FOMO. Biased reviews, obscure news sites, and exit scams can deceive you into making an uninformed decision.
Crypto exchanges with robust security measures, high liquidity, and various crypto assets are ideal. Whether you’re a rookie or not, you need a user-friendly and regulated platform that accepts several payment methods. Finally, protect private keys by storing digital assets in a hardware wallet.
If you’re looking for a trustworthy trading platform that can multiply your assets on short notice, look no further. NextHash is a proven crypto exchange with a long experience and a team of professionals that works 24/7.
We offer all-time low and no hidden fees for our outstanding services. Plus, we guarantee state-of-the-art security of transactions and a hack-proof payment gateway. Contact us and join the crypto revolution by trading any volume and asset pair you desire.