Top 5 Cryptocurrency Exchanges in 2021
More and more people are switching to a remote work format and are paying attention to additional income on the Internet. One of the most popular means in 2021 is to trade cryptocurrency on an exchange.
What is cryptocurrency
What is cryptocurrency? It is a type of virtual currency, a digital asset. Its internal units of account are recorded using a decentralized payment system.
Cryptocurrency lacks the material form familiar to many users. This is digital money that exist only in the electronic network in the form of data. Each coin is programmed with a complex code that cannot be copied. Thus, each coin is unique and protected from counterfeiting.
The heart of cryptocurrencies is blockchain – a distributed ledger technology. It contains information about all transactions carried out by the participants in the system.
The principle of the digital currency system was described by Satoshi Nakamoto in 2008. The essence of the new concept, the procedure for conducting operations was presented on bitcoin.org website. In January 2009, the first block was generated and the first bitcoins (Bitcoin) were mined. In addition to Bitcoin, today other digital coins are popular all over the world: Ethereum, Litecoin, Ripple, Stellar, Binance Coin.
What is a cryptocurrency exchange: how to buy and start trading
Recently, the purchase and sale of digital currency has become interesting not only to crypto enthusiasts, but also to other users who want to receive high income. Economic crises, turmoil in financial markets are becoming a powerful impetus for the development of crypto exchanges and other platforms where you can profitably buy digital currency.
Cryptocurrency exchange is a virtual commercial platform where customers can buy and sell bitcoin and other digital currency for fiat money (dollar, euro, ruble, etc.), conduct banking transactions, online transfers.
There is also the concept of ‘exchanging cryptocurrency’ – this is a transaction of buying/selling digital currency by exchanging one coin for another cryptocurrency or fiduciary money. One of the most popular trading pairs on the market is Bitcoin and Ethereum. Thus, the exchange can be fiat or cryptocurrency for cryptocurrency.
In terms of speed, exchanging through the crypto exchange is almost the same as the transmission of emails. It takes much less time and resources to process the transaction than through a bank. Other advantages of this method include the absence of an intermediary and meager commissions.
It is not profitable to trade cryptoassets on all resources, to deposit and withdraw capital. The price of the same currency pair on different sites can vary significantly. Traders make money on the difference in the rates of digital coins. This procedure is called cryptocurrency arbitration.
To start making money on cryptocurrency trading, it is not necessary to have an impressive amount on hand, although this increases the likelihood of earning. It is enough to start with a small starting fee and decide on a strategy: investing or trading.
The first strategy involves the accumulation of crypto coins and long-term storage of the asset. The second involves short-term speculation, when a lot of transactions take place. The main goal is to get the maximum benefit in a short-term period.
Depending on which strategy the user chooses, the options for storing cryptocurrency differ. For investment, it is better to use cold wallets, which allow you to keep the asset on a personal computer or a flash drive. Thus, no one can steal your funds without direct access. Cons: the rate of cryptocurrencies is volatile. The price can change by 10-20% per day, sometimes by 50% or more.
In case of an unexpected change in the exchange rate, it will take time to transfer assets to the trading floor. The main thing here is not to get confused and indicate the correct address when sending coins. Otherwise, there is a great risk of losing your savings without the possibility of recovery.
It is better to use exchanges to trade digital assets. Here you can not only buy/sell e-currency, but also use additional functions, such as leverage (the user can control one more capital). Some exchanges allow you to receive passive income for storing coins, the so-called staking.
To start trading on the exchange, in some cases, you need to go through the KYC procedure – identification of the counterparty's identity before carrying out a financial transaction. After that, you can start buying cryptocurrency using a credit or debit card. Some sites allow the use of various payment systems: PayPal, Yandex.Money. Cryptocurrencies can also be purchased through exchangers.
Many experts recommend starting trading with a practice account or create an account with a virtual balance. It will be useful to read specialized literature and attend niche conferences. This approach will allow a beginner to find out more about the trading platform and learn about effective trading strategies without unnecessary risks.
Cryptocurrency exchanges ranking in 2021
Check out five best cryptocurrency exchanges by trading volume, where both beginners and experienced crypto traders can earn money.
The exchange was founded in 2014. It is ranked first in the crypto exchanges ranking on CoinGecko and CoinMarketCap. The website is focused on the international market. More than 20 million traders from 200 countries of the world participate in the trading process. The daily turnover is $22.6 billion. The exchange launched its first token three years ago. It is used when paying trading fees.
The exchange supports over 400 trading pairs and does not require any fees for deposit or withdrawal of funds. Users can access not only the website, but also a convenient mobile application supported on iOS and Android.
Benefits of OKEx:
the most active traders receive bonuses on Fridays;
You can withdraw up to 10 BTC per day without confirming your identity;
your own mining pool;
availability of a referral program;
Lightning Network support for cheap transactions.
And the most important benefit of the platform is that the exchange has never been hacked. OKEx is available in the CIS countries. As for payment methods, you can deposit funds in both digital and fiat currency.
Founded in 2017. The exchange has its own BNB coin, which is valued at $660. The site offers 740 trading pairs and supports P2P trading.
SAFU insurance fund;
deposits using more than 60 fiat currencies;
weekly giveaways among traders;
the ability to create a virtual account.
Registration on the exchange is very simple. The user only needs an email address and a password. Optionally, you can add 2FA authorization. The platform is always in touch with customers. The support service accepts requests via Telegram, Facebook, VKontakte, YouTube.
The exchange has been operating on the market for over five years and has established itself as a resource with low commissions and high competitiveness. The standard trading commission is only 0.1%.
It offers traders a wide range of services:
KuCoin is a good choice for buying digital currency at the very beginning. The trading platform is simple and straightforward to use, there are practically no delays in making purchases. Deposits are available on the crypto exchange using the following payment methods: bank transfers and cards, PayPal, Apple Pay, Wire transfer, crypto assets. KuCoin adheres to high security standards.
A Chinese cryptocurrency exchange. It appeared in 2013 and has been successfully operating on the market for more than eight years. The company has opened offices in Japan, South Korea and Hong Kong. The staff includes more than 1000 employees.
margin and spot trading;
The platform also provides reliable technical assistance: in social networks, via the phone or email.
An international cryptocurrency exchange founded in 2018. More than 2 million people use its services. Bybit offers its clients:
The marketplace is optimized for any mobile device. It is also equipped with a large number of professional tools that make it easy to manage risks. There is a user-friendly interface in Russian.
Investing in bitcoin and other digital assets is difficult and risky. To avoid fraud, you need to trade on trusted websites with positive reviews and high rankings. Pay attention to the transaction fees. It is more profitable to conduct trading operations on the platform with the lowest costs.
The key indicator of the resource success is the trade volume, which sets the dynamics of the transactions. An important parameter is a geographic location. Depending on the legislation of a particular country, the rules for regulating the cryptocurrency market may differ.