The era of Cryptocurrencies and digital currencies is causing a lot of debate. People are now listening and interested in learning more about the concept of digital currencies. People from all walks of life, including those with different languages, cultures, creeds, and socio-economic backgrounds, have begun to explore the commercial-value of cryptocurrency. This positive trend has led to the development of strong Cryptocurrency exchanges.
To understand the impact of Cryptocurrency in the global ecosystem, it is important to first understand what Cryptocurrency Exchanges are, how to join them and what exchanges they offer.
A survey, done PricewaterhouseCoopers Consumer Cryptocurrency Survey 2015, asked sample customers using cryptocurrencies where they have used digital currencies in last 12 months?
Answer: 81% of respondents said that online shopping is a good option
14% for credit card bills
This shows the impact that cryptocurrencies have on financial services. The retail sector will also benefit from easier transactions and lower costs through credit card transactions.
- Ethereum- 2308%
- Ripple- 4568%
- NEM- 10617%
It is clear that Cryptocurrency trading on various exchanges has seen an exponential increase in the past few years, due to changing regulations and business decision across the globe.
You can buy, sell and trade cryptocurrencies on cryptocurrency exchanges. They can also be exchanged for fiat currencies such as USD or Euro, and other digital currencies. If you are interested in professional trading, an account and verification ID will be required before you can use the exchange. You don’t need an account or verification ID to access the exchange for professional trading.
These exchanges can be accessed as –
1. Direct Trading: These don’t have a fixed market price, and they allow direct person-to-person trading. This is open to individuals from different countries. The seller decides the market price and exchange rate.
2. Brokers: A broker sets the market price. You can visit these websites to purchase Cryptocurrency at their rates. Brokers are the equivalent of foreign exchange dealers.
3. These websites are known as trading platforms. They connect buyers and sellers, and take a commission for every transaction.
When you receive valuable information on Cryptocurrency, your excitement and curiosity will increase. However, you must be patient and learn the basics.
Follow these steps before you join an exchange.
1. Ask about the reputation of Exchange. Search for individuals and sites that can provide feedback and reviews on the reputation of an exchange. You can find information on Cryptocurrency exchanges from reputable industry websites. You can check out “BitcoinTalk”, “Reddit”, or “www.gdccoin.biz”.
2. Fees/Usage Charges: Make sure you read the terms and conditions before joining an exchange. There are few exchanges that allow withdrawal fees, transactions charges, deposits or transaction fees. You can also use the fee-free service for a limited time.
3. Payment Options: Check the payment options available before you join. There are many payment options available, including PayPal, wire transfers, credit and debit cards, and wire transfers. You will have more options. You should also avoid credit card mode, as it requires identification verification. These transactions have a higher risk of fraud and come at a premium price. High transaction and processing fees are also a part of credit cards. Bank wire transfers can take a long time and are therefore more time-consuming.
4. You will need to verify your identity: Many exchanges require you to verify your identity. This protects you from fraud, scams, and money laundering. Few exchanges allow anonymity, meaning you don’t need to identify yourself. For withdrawals and deposits, it is a good idea to join the one that requires ID verification.
5. Border restrictions: Some exchanges are not allowed to operate or allow transactions beyond certain borders. When you join an exchange, you must ensure that it is available in the country or state you reside.
6. Exchange rates: It is certain that different exchange rates will be offered by each exchange. You are responsible for deciding and trading accordingly. The rates are usually between +/-10%.
You can trade on many exchanges like Kraken, CEX.IO and ShapeShift. Poloniex, Bitstamp, and many more. Don’t judge based solely on user-friendliness or accessibility. Also, consider safety and charges.