What is a Crypto Exchange?
If you have heard about cryptocurrencies and want to try your hand at buying and selling them, your first question might be — where do I begin? How do you buy a crypto coin and how do you know which coin to go for?
That’s where an exchange comes in.
What is a crypto exchange?
A crypto exchange is an online platform where you can exchange your fiat money (GPD, USD etc) into your chosen coin (BTC, ETH etc). After setting up an account with your exchange, you will deposit your fiat money into the platform, which will then give you your money back in crypto form. Your money will be held in a wallet and you can buy and sell it, or simply save it to allow it to accumulate, depending on your preferences. Should you wish to convert back into fiat, you can do so via the same exchange.
Which exchange should you use?
There are thousands of crypto coins, and many exchanges. But some are much safer and easier to use than others. When it comes to crypto, the market is still largely unregulated and therefore you must be very careful about which exchanges you trust. Here are some things to look out for when choosing a crypto exchange:
- Reviews. Make sure that the exchange has authentic user reviews available across multiple websites. Don’t just read the reviews on the exchange website, as these can easily be faked.
- Regulation. Do some research on how the exchange is regulated (if at all). Popular exchanges like Coinbase are subject to US & UK regulations. Others are completely unregulated and could, in theory, take your money and disappear without you having any rights to it. Be careful and check the small print, which should clearly state how that company is regulated.
- Ease of use. A well-built, easy to follow exchange will be safer to use and simpler to navigate. The last thing you want to do is lose your money in an exchange with no way of getting it out again. It also helps you to access the exchange from a phone. If the exchange has an app you can download, this is a positive clue that the platform is reputable.
- Customer service. Any reputable exchange will have a customer service option. A contact number, headquarters address and email address is the bare minimum of what you should expect. You should feel supported as a customer, and certainly shouldn’t have to chase for a response to your query.
- Social Media presence. A reputable exchange will have a social media page, and an opportunity for you to chat with staff on social media too.
- Educational resources. Not all exchanges will have this, but good exchanges will provide resources to users to make sure they know how to use the features.
- Withdrawal methods. If you want to exchange back into fiat, you should know exactly how to do this on your chosen exchange before you part with any money.
- Fees. Some exchanges have very low fees — others don’t. Make sure you check out the terms and conditions of your chosen exchange before spending any money.
- Minimum/maximum trading allowances. Some exchanges cap how much you can trade. Make sure that your chosen exchange accommodates the amount of crypto you want to buy and sell.
Some of the most popular exchanges are:
And many, many more…
Once you have discovered the right exchange for you, create an account and begin investing!
How do you know when your crypto is performing well?
When your crypto coin is performing well, you can see this via your exchange account. But unless you have alerts set up, you may miss crucial moments to sell or buy crypto coins. For example, if your crypto is peaking in value, and likely to fall in value in the coming days, you’ll want to consider selling it at peak value and transferring to another coin. This way your investment can continue to accumulate, rather than linger. Having an alert sent to your phone can help you make wise investment decisions. When you set up an account with JustAlerts, you will receive real time data to your phone. You can customize your profile settings to receive certain alerts that interest you the most. And, the great news is, signing up is free. Check out JustAlerts today.
