Trading On Cryptocurrency Exchange
The number of cryptocurrency enthusiasts around the world is fast growing and in a short time, a sizable percentage of the world population will accept crypto as a medium of payment and settlement of debt.
As we can see from the recent past months, a lot of reputable companies and organizations already formally announced that they would accept bitcoin as some certain other altcoin as means of payment and it is general knowledge that a number of more businesses would sooner or later follow suit.
In a quest to provide liquidity for this new level of fintech, intelligent entrepreneurs came up with a solution. They came up with the idea of building online exchanges for cryptocurrencies (converting on cryptocurrency to another or converting a cryptocurrency for its value in fiat) just like stock exchanges and bureau-de-change.
Due to this innovation, a number of exchanges (crypto) sprung up in the past few years. This means that exchanging bitcoin for altcoin or fiat is now quite easy compared to peer-to-peer. With peer-to-peer, one has to physically reach out to the person who wants to buy a particular crypto-coin before liquidity is guaranteed but with exchanges, you can carry out trade across continents and locally too.
A lot of cryptocurrency traders carry out their day-to-day trading activities on exchanges. These exchanges are platforms where people buy and/or sell a particular crypto coin for its value in another coin or fiat. This means that on exchanges, liquidity for your crypto coin is readily available.
However, there are hundreds of cryptocurrency exchanges at the moment, and hundreds more are certainly still coming up, but a prudent trader does not just put his money into an exchange. He employs his discretion while selecting an exchange on which to would carry out his trading activities.
We know that cryptocurrencies are valuable assets. As such you don’t want to lose your money due to carelessness.
In selecting an exchange to trade on, a certain number of factors need to be put into consideration. Some of these factors include;
- Origin of the exchange: check the credibility of the owners of the exchange.
- Transaction charges.
- Transaction speed: how fast or quickly transaction orders are verified and confirmed.
- Customer service and relationship: how readily do the customer agents of the exchange platform attend to complaints of users and how they handle improvement propositions.