Cryptocurrency is a digital commodity that is programmed to operate as a means of exchange using cryptography in other to protect users’ transactions and to regulate the creation of more currency. As crypto currencies become more popular with a high increase in demand, there is a need to know what the term ‘Cryptocurrency Exchange’ entails. In 2009, Bitcoin became the world’s first decentralized crypto currency. Due to its stable growth and profitability, more users created several other crypto currencies. Presently, there are over eight hundred crypto currencies on the internet with Bitcoin leading the pack of the digital currency world. These crypto currencies operate on a decentralized system, which is built on the block chain technology. Due to their decentralized nature, there is no central power that controls or regulates crypto currencies, and they can be used for all forms of online transactions.
A Cryptocurrency Exchange is a website or platform created specifically for the buying, selling and exchanging of crypto currencies. These crypto currencies are exchanged for a fiat money or a digital currency. As a first-time Cryptocurrency user, it is vital to choose one of the bests exchanges for your transactions. These handpicked exchanges come with several features to suit a user’s need.
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Check Out the Top Five Cryptocurrency Exchange
Coinbase: This particular Cryptocurrency Exchange always tops the chart. It is a reputable and well-known exchange. It is an online exchange that supports three main digital currencies namely; Bitcoin, Ethereum, and Litecoin. It is packed with several features such as;
- Security: When it comes to security, Coinbase has good security installed on its servers. Ninety-eight percent of customer funds are stored in the offline Offline storage is an important security measure that helps secure the funds against any form of theft.
- Any sensitive data that is stored on Coinbase is most times disconnected completely from the internet.
- Coinbase protects its customer’s data by splitting its user’s data, encrypting it using AES-256, copying it to FIPS-140 USB drives and then it backs it up using a paper
- Part of Coinbase security measures comes with a two-step authentication of all users account. Apart from this, a code is required to add to the extra security measures of a user’s account.
- On Coinbase, all wallets and private keys are securely stored through AES-256 encryption.
- According to Coinbase, it makes use of SQL injection filters and the verification of the authenticity of certain requests to help prevent CSRF attacks.
- Funds Insurance: One good advantage Coinbase has over other exchanges is the fact that all funds stored on its servers are fully insured. This simply means that if perhaps, Coin base should suffer any loss or theft; customers would not need to worry, as they would be paid by the insurance policy governing the funds. However, if any loss occurs due to a customer’s carelessness, Coinbase will not be responsible for it. Apart from ensuring all digital currencies, Coinbase also ensures any Fiat currency kept in its custody. Fiat currencies are insured up to the maximum of $250,000.
Full Control: Coinbase gives its users full control over their accounts. A user may decide to opt for the default coin base vault or the multi sig vault. This vault comes with several features such as;
- It allows users control their keys
- It allows users to easily send any crypto currency
- Users can buy any Cryptocurrency of their choice straight into their vault.
- It allows users have up to five co-signers for a group vault
- Its keys are created and encrypted in the browser
- Coinbase has several features designed to suit the needs of Cryptocurrency users. It also has an Android and IOS apps for the users convenience.
CEX.IO; This is a popular Bitcoin exchange created in the year 2013. It is an online Cryptocurrency Exchange that allows users to trade Bitcoin for fiat currencies. It charges a low transaction fee on trade operations. It offers various features such as:
- It supports payment options like Master Card, Bank Transfer, Visa, etc
- It has full data encryption, and it complies with the PCI DSS standards
- CEX.io supports over ninety percent of countries. Hence, it has a global reach.
- It has a good margin trading with a round 1:2 and 1:3 advantages.
- It has a zero percent transaction fee
- It has a cross platform trading for traders.
- It has an advanced, downloadable and real time reporting
- It offers a high liquidity.
Coinmama: Coinmama is another popular Cryptocurrency Exchange. Using Coinmama, you do not require any form of account verification. It has an easy to use interface that is good for first-time Cryptocurrency buyers. It offers various features including;
It makes use of popular payment methods such as Visa, MasterCard, Credit and Debit cards, etc. Users also have an alternative to buying using western union. On coin mama, most people make use of the credit card option for payment. Hence, it has a set global credit card fees.
Coinmama supports many countries, and it is one of the exchanges with a wide range of countries supported. Coinmama also supports around fifteen US states which include; California, Florida, Illinois, Indiana, Massachusetts, Michigan, Texas, Pennsylvania, etc.
Coinmama has a rule that enables customers who purchase $150 (one hundred and fifty dollars) worth of bitcoins to purchase it without any form of verification, but for users purchasing above that amount, they are required to verify their identity for security reasons.
For users who want to buy a large amount of Bitcoin per day, Coinmama could be one’s best bet as it allows users to buy up to five thousand dollars worth of Bitcoin per day. It also allows users to purchase up to twenty thousand dollar worth of Bitcoin per month.
One disadvantage of Coinmama is that it charges high fees when users make purchases using credit or debit card. It charges around ten percent for purchases which when compared to other exchanges; a user could get it cheaper.
Local Bitcoins: Local Bitcoins is a Finland based bitcoin exchange that operates using a different exchange method. It makes use of over the counter trading method that allows users to trade using their local currency for bitcoins. Local Bitcoin is different in the sense that it allows users to quickly find and connect with local Bitcoin traders. Local Bitcoin collects a one percent fee on each trade as this is in exchange for providing the platform and other resources for users. On Local Bitcoins, sellers put up ads on the website for potential buyers who are interested in buying Bitcoins.
Bitfinex: Bitfinex is a popular Hong Kong based Cryptocurrency Exchange that is operated by index Inc. It is the largest Bitcoin exchange and trading platform. Apart from Bitcoin, Bitfinex also supports other exchanges such as Ethereum, Ethereum Classic, Litecoin, Monero, Dash, Zcash, Ripple, and Iota. It has more than ten percent of the exchange trading. It has an Android and IOS apps dedicated to its users. Bitfinex also has an advanced analytics and security that helps to keep the website secure.
In summary, there are several types of mining pool on the internet. However, as a beginner, it is vital only to pick the exchanges that suit your needs. They should have an affordable pool fee and make sure you check the reputation of such company. This will help you find a trust worthy mining pool.