Beginner's Guide to CryptoCurrency: Crypto Exchanges
If you are just tuning in and consider yourself a Beginner in the Crypto World, I highly recommend the previous segment in my Beginner's Guide to CryptoCurrency, which covers how to safely store Crypto Currency: https://steemit.com/crypto/@ridge-sin/beginner-s-guide-to-cryptocurrency-crypto-wallets-pt-1
In this segment, we are going to cover Crypto Currency Exchanges and how to choose the one that best suits you for yourself.
A Crypto Currency Exchange is just like it sounds, a platform that facilitates active trades. Unlike a Stock Exchange, the Crypto Currency market is constantly, globally active and never closes. There are many exchanges out there, and each one is built just a bit differently from the next. The main things that set exchanges apart from one another are: Trade Pairings, Transaction Fees and HQ Location.
Trade Pairings are the Currencies that are available for purchase via the respective Exchange, and always has two parts: The Currency required to purchase, and the currency being purchased. For example: USD/BTC, which is the symbol for BTC being purchasable via USD. Trade Pairings are a key difference between Exchanges, ranging from completely excluding Fiat Currency Trade Pairings to offering nearly a Hundred. As such, it is not uncommon for Investors to explore new exchanges because they offer a Pairing that other Exchanges don't offer.
Transaction Fees are incurred upon purchases, sales and transfers. These fees can be massively different from Exchange to Exchange, ranging anywhere from 10% to 0.01%, and can also vary widely between Trade Pairings on the same Exchange. Because of this it is always recommended to DOUBLE CHECK the Transaction Fees before confirming any Transaction!
The HQ Location is important because this dictates which policies and insurances the Exchange in question is obligated to abide by. Some find comfort in Exchanges that are Insured in their local Countries, while others see trading on Foreign Exchanges as an opportunity to dodge Local Policy.
Using these 3 factors, you can better assess for yourself which Crypto Exchange, and whether you will need access to multiple Crypto Exchanges in order to best accomplish your Investment goals!
In an upcoming segment, I will be reviewing a small list of Crypto Exchanges so that viewers can better assess some well known exchange platforms in one detailed article!
If you enjoyed this segment of my Beginner's Guide to CryptoCurrency, tune in to my next segment in which we we talk about some of the ways you can assess any Company or Project behind any respective CryptoCurrency before you make the choice to Invest in their Token!