There are more than 1,600 cryptocurrencies in circulation today. Together, they create a market cap of more than $289 billion. As crypto continues to grow, it only makes sense that cryptocurrency exchanges continue to grow.

Around the globe, investors are very eager to start trading on this rapidly-growing platform. The question, then, is which platform to choose, and which crypto exchange is the best one for you to get started on.

While all exchanges allow consumers to sell, buy, or trade cryptocurrencies, they’re not all created equal. Whereas some exchanges are ideal for less-experienced traders, others are better-suited for full-time, professional traders.

 

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Here’s what you need to know about the top five crypto markets out there today, and how you can take advantage of each.

Coinbase

Coinbase is an exchange based in San Francisco.

Founded in 2012, it currently offers four tradable coins and an expansive set of tools for merchants who want to start trading. Users on the platform can sell, store, and buy tokens. Then, they can use them to make payments to companies like Expedia and Overstock, which accept bitcoin.

As the first cryptocurrency platform to achieve a valuation of more than $1 billion, Coinbase has become one of the most popular crypto exchanges out there.

 

BitMEX

BitMEX is a mercantile exchange for bitcoin. While some platforms, like Coinbase, cater to retail investors, BitMEX is designed to cater to dedicated traders.

It processes more than $2 billion in transactions daily. It does not currently handle fiat currency and is not available to customers throughout the United States.

 

Gemini

Gemini is an exchange launched by two former Facebook employees. Similar in structure to Coinbase, Gemini isn’t available in all 50 states throughout the country. Designed to support the trading of bitcoin and Ethereum, Gemini provides FDIC insurance for cash balances.

 

Kraken

Kraken is a digital currency exchange that offers 17 different cryptocurrencies for people who want to trade on the platform. Unlike many other exchanges, this one offers a tiered program. This makes it effective for both beginning investors and more experienced traders. While you cannot fund the platform via U.S. dollars, it is possible to trade other cryptocurrencies from your wallet or other platforms.

 

KuCoin

One of the strongest exchanges, KuCoin, also offers a mobile app (Android and iOS). The platform has been constantly updating its mobile app, and is currently one of the best and brightest in the industry.

 

Choosing the Exchange that Works for You

When it comes to choosing a cryptocurrency exchange, finding the one that suits your goals, needs, and experience is essential.

These five crypto exchanges all offer various benefits and drawbacks, and those features make them ideal for some investors while ill-suited to others.

When you understand this, as well as the fact that not all exchanges are created equal, you can take proactive steps to identify the exchange that works best for you. A solid understanding will also allow you to take full advantage of the platform. If you’re like most traders, you’ll find that you actually use a mixture of exchanges over the course of your trading lifetime.

 

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It’s essential to fluidly adapt to the exchanges you use and to be cognizant of when things just aren’t working. Once you’re proficient in these aspects, you can find an option that suits you, your trading goals, and your long-term objectives.

If you’re just getting into cryptocurrency trading and investments, it can help to learn the nuts and bolts of selling and buying currency. There are a handful of tools you’ll need for the process, including trading software and a cryptocurrency wallet. You also need to gain an understanding of cryptocurrency exchanges, where people actually do the trading of the cryptocurrency. If you want to understand more about cryptocurrency exchanges are and how they work, the following basic guide can help.

 

What is a Cryptocurrency Exchange?

When you want to exchange cryptocurrency online, you do it on a platform called a cryptocurrency exchange. Cryptocurrency exchanges are like the stock market: you can buy and sell different amount and types of cryptocurrency, all based on the current market price for that currency. Some cryptocurrency exchanges only exchange cryptocurrencies. Others will exchange cryptocurrency for legal tender (including things like US dollars).

 

What Should I Expect When Entering a Cryptocurrency Exchange?

There are lots of exchanges you can choose to trade your crypto. Some of the most popular include Coinbase, LocalBitcoins, Binance, and CEX. When you go to an exchange for the first time, choose one that will allow you to buy crypto. You can do that with a credit card or by linking your bank account with the exchange.

Once you’ve linked your card or bank account to buy crypto, you have the ability to buy it. Go to a Buy/Sell cryptocurrency tab, select your payment type, enter the amount you want to type and click “buy.”

Once you have coins in your account, you can begin to use that currency for trading or investing. To buy a different cryptocurrency using the amount you already have, choose to buy one of the other coins (for example, use your Bitcoin to buy Litecoin). Then, if you want to get dollars back for your cryptocurrency, you can sell it for money (like USD).

Don’t forget that there are limits to how much you can buy and sell within a certain time period and that there are often fees involved with trading, so do your research before you begin to make sure you’re making a smart financial move.

 

Tips for Carrying Out a Successful Exchange of Cryptocurrency

If you want to be successful at exchanging cryptocurrency, here are some tips that you might find helpful when you’re first starting out:

 

Use your bank account

Try to use your bank account when you are trading cryptocurrency on an exchange. This can help because the fees are lower if you link your bank account than if you link your credit card.

 

Set alerts for trading

Set alerts for yourself so that you know when you should trade. You can set alerts for when the value of certain currencies rises to a particular amount or when they fall to a certain amount.

 

Pay attention to the market

The cryptocurrency market is ever-changing, and it can be volatile. If you want to be successful at making money with a cryptocurrency investment, you need to pay attention to the market. By staying informed and making decisions based on knowledge, you can be as certain as possible that you’re making the right moves.

 

Trade from your mobile device.

Don’t be glued to your desktop or need to run home in order to trade. Get an app for your exchange so that you can trade no matter where you are. This is particularly important for a market that’s changing all of the time.

 

Final Thoughts

Like anything, trading cryptocurrencies takes practice and dedication to succeed. Understanding the basics of an exchange is a great start to your journey in crypto. If you’re ready to take the next step in cryptocurrency investments, shoot us a message.