Exchange is one of the investment modalities that is charging the most in virtual currencies or cryptocurrencies. And it is that this new form of money has quickly gained followers for the value that it is charging and the profitability that they promise to offer.
To directly access this market and be able to get your own Coins, digital currencies, it is necessary to operate through an Exchange. That is why here we will tell you everything you need to know to find the best option. We will also give you our recommendations of who are the best.
✨ What is an Exchange?
An Exchange is the name of an exchange house, only in English. In the context of cryptocurrencies, these are digital or online platforms which serve as a kind of bank. Here you can buy, sell or exchange your cryptocurrencies for other cryptocurrencies or for conventional currencies such as euros or dollars.
And you should know that not all countries and financial entities accept cryptocurrencies as real money, rather they handle it as virtual. That is why in these houses the exchange of these to traditional money is allowed.
✨ Exchange types
- Broker: The best way to explain this Broker exchange house is to refer to the exchange houses at the airport. Here the broker buys cryptocurrencies at low prices and then resells them at market price, adding a commission. This is one of the easiest options to use, but also one of the most expensive
- Traditional: On the other hand, we have the traditional exchange house which is the most popular option among investors. These houses offer platforms where investors can freely exchange currencies at market prices. Charges are made through Spread and some small commissions.
- P2P exchanges: Peer to Peer platforms appeared as ways to sell products between personal users and quickly grew in popularity, clear examples are Amazon and MercadoLibre. In the world of cryptocurrencies, these platforms allow currency exchanges at different prices and with a small management fee.
In addition, you should know the 3 main types of commissions
- According to the payment method: This type of commission is charged by the issuer of the payment, not the Exchange. Normally, these commissions are charged when you buy or sell any currency in addition to when to convert from cryptocurrency to conventional currency.
- Transaction: On the other hand, the transaction fee is charged when you carry out a transaction, for example, buying or selling coins. These can vary, here we find Spread commissions, fixed commissions and also variable according to the time of the transaction.
- When withdrawing balance: Another of the frequent commissions is the one that is charged directly when withdrawing the balance. Here there are two different commissions, the first is the one charged on the means of payment and the second is the one charged for conversion to traditional currency.
✨ Payment methods accepted by Exchange
It is important that you take into account the payment method, since depending on this is the time of commission. The main methods are:
- Debit and credit cards: The commission is around 3% for all cards regardless of the issuer.
- PayPal: Of the most used, the commission is between 3 and 4%.
- Wire transfer: This is one of the most popular methods and the commission cost is very low at 1%.
- Cryptocurrency deposit: If you already have cryptocurrencies, you can use them as a payment method. Some exchanges charge 0% commission.
✨5 points to choose the best
If you don't know how to choose the best Exchange, you should know that there are points to take into account. Here we will tell you which are the 5 points that experts recommend taking into account when choosing an exchange house. This way you will find the best option.
- Available cryptocurrencies: Taking into account the type of cryptocurrencies they offer to operate is very important. The ideal is to find an exchange that offers multi currencies.
- Commissions and payment methods: Having many payment options is a great option, as this gives us the freedom to choose where to withdraw or how to deposit. Commissions are also important as they will determine the cost of operating in an Exchange.
- Wallet: Having an exchange house with your own Wallet can be a great idea to reduce paperwork and processes. Thus, you can easily transfer your cryptocurrencies from your Exchange to your Wallet without registering on another platform.
- Safety: A good exchange house offers the security of knowing that it has the support and liquidity to fulfill all the orders of the users. What's more, has the latest security and protection measures to ensure that your information is properly protected.
- Limits on withdrawals and deposits: Nor should you miss checking what are the limits on withdrawals and deposits of the platforms. This is because, like an ATM, they can put limits on daily transactions to users for their safety.
✨The best on the market
- Binance: Trade Bitcoin, Bitcoin Exchange, Ethereum, Ethereum Classic, Iota, Ripple, Litecoin, and Dash. In addition, it accepts credit cards, debit cards, transfers, cryptocurrencies, PayPal, Skrillex and has its own Wallet.
- Coinbase: Accepts the same currencies as the previous option (Bitcoin, Bitcoin Exchange, Ethereum, Ethereum Classic, Iota, Ripple, Litecoin and Dash). In payment methods, it operates with credit cards, debit cards, transfers, cryptocurrencies and PayPal.
- bitpand: This Exchange accepts all cryptocurrencies and operates with payment methods above, only instead of accepting PayPal it uses Skrillex. It also has its own Wallet.
- Bitfinex: Like the previous options, it operates with all the currencies already mentioned. In payment methods, it only accepts credit cards, debit cards, transfers and cryptocurrencies.
- Fluid: This option is very similar to the previous one in payment methods, since does not accept Skrillex or PayPal. It operates all currencies and also has its own Wallet.