We come to one of the most important steps on your crypto journey. Choosing a place to buy and sell your cryptocurrency.
Looking into these details will help you make a more informed decision about who to trust, with your hard earned money.
To start, what exactly is an exchange?
An exchange is a platform where you can buy and sell cryptocurrencies.
It can be compared to the NASDAQ or New York Stock Exchange, however on this exchange you trade cryptocurrencies instead of shares. But exchanging crypto is not limited to only exchanges. You can trade on more than one platform.
We can put it very simply in an age old idiom; Different strokes for different folks. Considering this, we take a look at the differences between all the different parties you can use to buy or sell cryptocurrencies on. We recognize three different platforms; a Cryptocurrency Broker, a Cryptocurrency Exchange and a Decentralized Exchange – DEX.
This is an organization where you can buy or sell cryptocurrency at a price and fee determined by the broker itself. Whereas prices are mostly similar to prices set by its competitors, users will buy and sell directly from the broker.
These brokers hold large amounts of cryptocurrency, in order to supply their users sufficiently. Brokers are considered suitable for beginners as they offer a beginner friendly environment for users who are looking to buy Bitcoin or other cryptocurrencies in ‘small’ amounts.
This is an organization where multiple buyers and sellers come together. Where buyers and sellers can choose to buy or sell at any price, but will have to wait until another buyer or seller agrees to complete the transaction.
Exchanges are mostly recommended for advanced users, because basic knowledge of ‘how to trade’ is required. If you already have this notion and want to trade on a multitude of markets, exchanges are a perfect fit.
Both parties described above are centralized entities that can control your cryptocurrency, can limit withdrawals , and control what can be traded.
In the spirit of the decentralized vision of the blockchain movement a new type of exchange has emerged. A decentralized exchange, a.k.a. DEX.
A decentralized exchange is an exchange whereby no central party is governing transactions, holds your crypto or can be shutdown. Instead of giving the power to a centralized entity, transactions will happen through the code of smart contracts.
Buying with Fiat
Selling into Fiat
Who owns the keys?
Using an exchange will not make you the owner of your cryptocurrency, it will give you access to your crypto wallet.
If the exchange disappears, your coins do as well.
If you want to trade long term, please remove your coins from an exchange and store them in your personal wallet.
In the list below, you’ll find a selection of the most reliable and popular cryptocurrency exchanges in one handy overview.
By clicking on ‘check out the exchange‘ you’ll find more information about specifics as; ‘how to use, how to log in, exchange reviews and so on…’
Now that you have a guideline where to start buying or selling cryptocurrency, you can continue your journey. The next step in proceeding is to well-inform and educate yourself . Because if you want to make money in this industry you need to improve and educate yourself constantly.
This can be done on YourCryptoLibrary or together with us by joining our VIP group.