Everything You Need To Know About Cryptocurrency Exchanges In The Market Today
Hi Crypto Network,
A number of people in the past few weeks have asked me: What are the best Cryptocurrency Exchanges available? The truth is, there isn’t a single Exchange that offers everything a Cryptocurrency Trader might need, but that might not be the case for much longer…
Soon there might be a solution that provides the complete package, but until then, I would recommend that you schedule a call with myself, or one of our other Master Crypto Traders as soon as possible in order to take advantage of all the opportunities currently in the market! Once you’ve done that, let’s dive right in to today’s topic!
WHAT IS A CRYPTOCURRENCY EXCHANGE?
A Cryptocurrency Exchange is a platform in which you can exchange either your fiat currency (being your Great British Pounds, American Dollars, Euros, etcetera) or other Cryptocurrencies (like Bitcoin or Ethereum) into the Cryptocurrencies available on the exchange.
ARE ALL CRYPTOCURRENCY EXCHANGES THE SAME?
In short: No.
There can be a number of differences to look out for when considering an exchange. For example, there are the different currencies available to you. Coinbase, one of the most popular cryptocurrency exchanges, only offers 4 different currencies at the present time: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. While other exchanges, like Bittrex, offer hundreds of different pairs.
BUT IS THE VARIETY OF PAIRS AVAILABLE ON THE EXCHANGE THE ONLY DIFFERENCE BETWEEN THEM?
Again, in short: No.
There are 3 main types of Cryptocurrency exchange: Centralised (CEX), Decentralised (DEX), and Hybrid. Don’t worry, they’re not as complex as they may initially seem. You will find all you need to know about these various types of exchanges below:
CENTRALISED CRYPTOCURRENCY EXCHANGE (CEX)
Centralised Exchanges are similar to your typical Stock Exchange, there are multiple parties involved in each transaction: The Buyer, the Seller, and the Middleman. When we talk about ‘Centralisation’ in the crypto-world, it means that somebody, typically a middleman, handles your money. In this instance, the Exchange is the middleman. One of the main issues that decentralisation combats, is the susceptibility to tampering and hacking that centralised systems are often cursed with.
The typical process of a Centralised Exchange is the customer deposits their funds, which the exchange then holds. The customer then places an order and depending on the exchange they will either fulfil the order or find someone offering what you have requested and proceed to fulfil your request. Either way, the exchange acts as an intermediary, granting them the title of ‘Centralised’.
Coinbase, Kraken, Gemini, Bittrex, and Robinhood are among the top Centralised Cryptocurrency Exchanges that offer Fiat/Crypto pairs.
Binance, KuCoin, Bitfinex, and Huobi are among the top Centralised Cryptocurrency Exchanges that offer only Crypto/Crypto pairs.
DECENTRALISED CRYPTOCURRENCY EXCHANGE (DEX)
As someone who is interested in Cryptocurrencies, you will probably be well aware of decentralisation, and the initial peer-to-peer concept of Cryptocurrencies. Decentralised Exchanges follow on with this philosophy by facilitating peer-to-peer Cryptocurrency transactions without the need for a middleman. This direct trading makes Decentralised Exchanges harder to tamper with and hack. However, you are also more vulnerable to locking yourself out from your funds, and the exchanges can also be susceptible to low liquidity and volumes depending on their popularity at the time.
IDEX, Bisq DEX, Waves DEX, and Stellar SEX are among the top Decentralised Cryptocurrency Exchanges.
HYBRID CRYPTOCURRENCY EXCHANGE
Last but certainly not least, we have Hybrid Exchanges. These exchanges are said to be the Cryptocurrency Trading Marketplace’s Next Generation. Their aim is to combine the two previously mentioned Exchange types and provide the security and privacy of a Decentralised Cryptocurrency Exchange, with the liquidity and functionality of a Centralised Cryptocurrency Exchange. If done correctly, Hybrid Exchanges are a force to be reckoned with.
Qurrex was the first Hybrid Exchange to the market, and was launched this year, 2018. In 2016 the team behind Qurrex got together and consisted of experts with many years of experience in the Foreign Exchange markets, with founders of successfully operating Futures and Stock Exchanges, as well as Developers of Trade Terminals. They all recognised the phenomenal potential in combining the best practises of traditional exchanges in order to bring about the creation of a new generation of Exchange for Cryptocurrencies which is able to provide the best of both Centralised and Decentralised Cryptocurrency Exchanges.
WHICH EXCHANGE BEST FITS MY NEEDS?
Depending on your needs, you may find that a selection of exchanges may be necessary in order for you to fulfil your desires in the market. All of our crypto traders here at Platinum don’t use a single exchange, since you would be severely limit your opportunities by relying on the offerings of just a single exchange.
What would be perfect is somewhere you could put in your cryptocurrency trading requirements, and it would tell you which exchanges would offer what you need, it’s just a shame that doesn’t exist, right? WRONG.
Talk to one of our traders today, and we can do exactly that. No longer will you have to research each and every exchange individually to find which ones work for you, you can simply let us know what you need, and we can show you which exchanges fulfil those needs!
So, what are you waiting for? Get in touch!
If you’ve booked your session above, we look forward to speaking to you soon!
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Live from the Platinum Crypto Trading Floor.