The Complete Beginners Guide to Crypto Currency Exchange
Table of contents
- Reading The Market
- Coinbase/GDAX
- Bitstamp
- Psychological Cycles
- Gemini
- Digital Ticks
- Kraken
- Bitfinex
- EtherDelta
- Conclusion
Cryptocurrency Exchange or Digital Currency Exchange is a business that involves the exchange of cryptocurrency with other assets such as money or any other digital currency. The Beginners Guide to Crypto Currency Exchange
It is a web service that provides electronic transactions in electronic forms and taking fees for them.
Any transactions or operations to Digital Currency Exchange can be made through debit and credit cards, postal money orders, or any other kind of money transfer.
This article is about discussing the various cryptocurrency exchanges which facilitate cryptocurrency trading for beginners and what they offer in terms of availability, ease of use, security, deposit/withdrawal methods, and fees.
We hope this guide to cryptocurrency trading can help you get started with cryptocurrency exchanges.
Reading the markets
To the layperson, “the market” may seem like some complex system that only a specialist could ever hope to understand, but the truth is that it all comes down to people buying and selling. The totality of active buy and sell orders is a snapshot of a market at a given moment. Reading the market is the ongoing process of spotting patterns, or trends, over time, which the trader can choose to act upon. Overall, there are two market trends: bullish and bearish.
A bull market occurs when prices steadily increase. These price increases are also called “pumps,” as the influx of buyers raises prices. A bear market occurs when prices steadily decrease. These descending value developments are otherwise called "dumps," as the mass sell-offs bring about the cost going lower.
Coinbase/GDAX
Coinbase is one of the biggest cryptocurrency exchanges based in San Francisco, California.
Coinbase’s GDAX (now Coinbase Pro) is a cryptocurrency exchange that allows you to trade Bitcoin, Ethereum, XRP, and more, allows some coin-to-coin exchange, and pairs with Coinbase.
NOTE: GDAX was changed to Coinbase Pro in May 2018. Coinbase Pro is effectively the same site as GDAX with a few slight changes. With that said, the information below is generally correct minus the name change and changes.
It is available in 32 countries and currently serves over 10 million customers. Launched in 2012, it has an easy-to-use interface that makes Digital Currency Exchange an easy task for a non-technical person.
The Complete Beginners Guide to Crypto Currency Exchange
It is also available for both iOS and Android. Unfortunately, Coinbase doesn’t provide cryptocurrency mining for beginners and is only an exchange.
As of now, it offers four coins, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. It exchanges digital currency with US dollars, Euros, and Great British Pounds. With minimum transfer fees, Coinbase has never experienced any security breach which makes it a perfect platform for digital currency exchange.
In addition to that, Coinbase also offers a fully-fledged advanced exchange called GDAX. It offers more advanced features and different and better trading fees than Coinbase.
Bitstamp
Bitstamp is another platform that provides digital currency exchange.
It is relatively easy to use and offers more advanced features via TradeView. Bitstamp offers coins such as Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and ripple.
It exchanges digital currency with US dollars and euros. You can put into practice all the latest cryptocurrency trading techniques in this exchange.
It offers Flat deposits via bank transfers and supports debit/credit cards. Perhaps the only drawback one can find in Bitstamp is slightly high fees and the fact that it suffered one security breach in 7 years of its operation.
Nonetheless, it is one of the most reliable exchanges. It is available on both iOS and Android.
Psychological cycles
Market psychology is the theory that the movements that happen within a market are due to its participants' emotional states. Many analysts believe that investor emotions are what drive prices up and down. The idea is that investor sentiment is what creates the psychology of a market cycle.
This aspect of the market is represented in the classic chart “Psychology of a Market Cycle”:
Gemini
Gemini is a UK-based company launched in 2015 by the Winklevoss twins. It is available in few countries including U.S, Canada, Hong Kong, Singapore, and South Korea.
One of the downsides to this platform is that it is not particularly user-friendly. So, beginners are not recommended to use this platform.
It offers two coins and 1 FLAT currency Bitcoin Cash, Ehtereum, and US Dollars.
Gemini follows strict protocols when it comes to security and as of 2018, it has not encountered a single security breach thus making it one of the most secure and reliable digital currency platforms.
However, it is important to have digital currency investment strategies before you start trading.
Digital Ticks
Digital ticks is a modern crypto exchange that aims to be a game-changer in this sector.
Which has a unique feature called a Single Portfolio View that would enable the traders to see all the holding positions on one single portfolio.
It would be easy for traders to make informed decisions regarding the cryptocurrency exchange by using this unique feature. It also supports Bitcoin, Ethereum, Litecoin, and Dashcoin.
Kraken
Kraken is one of the oldest cryptocurrency exchange platforms. Launched in 2011, Kraken is the biggest exchange in terms of volume and liquidity for EUR trading pairs. It serves worldwide including the US.
Kraken offers a variety of coins including Bitcoin Cash, Ethereum, Monero, Augur, Litecoin, and many more.
It also supports deposits/withdrawals via bank transfers and cryptocurrencies.
Having a not-so-friendly user interface, it also suffers from stability and performance issues but it is a good platform for cryptocurrency exchanges.
Bitfinex
Bitfinex is an advanced, veteran cryptocurrency exchange with a haunted past of hacks and allegations. The exchange is well suited for advanced traders and also supplies the option for margin trading and lending. Bitfinex does not accept US customers.
Bitfinex is the largest cryptocurrency exchange platform. Launched in 2012, it has an easy-to-use interface and offers an advanced number of features such as margin trading, margin funding, etc.
It is available for both iOS and Android platforms. It offers BTC, BCH, ETH, LTC, IOTA, XMR, and NEO.
Just like the previous cryptocurrency exchanges, it supports withdrawals using US dollars and Euros via bank transfers. Bitfinex has suffered two security breaches, the first one was in May 2015, which resulted in a loss of $330,000.
And the second one in August 2016 resulted in a loss worth $72 million.
EtherDelta
EtherDelta is a decentralized exchange that directly supports peer-to-peer connections.
Currently, EtherDelta only supports Ehtereum based tokens.
EtherDelta has a rather confusing interface that makes it difficult for users to perform cryptocurrency exchange operations.
On one occasion, someone tried to buy 750 Kyber for 0.007 ETH each but ended up buying 0.007 KNC at 750 ETH.
Lastly
Subsequent to taking a gander at the different cryptographic money trading stages, we can securely say that Coinbase and Bitstamp hang out as far as their great components like security, easy-to-understand interface, numerous pulls out/move strategies, and some more.
I would not call them perfect but I would recommend that it is the safest bet you can make. The Beginners Guide to Crypto Currency Exchange
Every cryptocurrency exchanging platform is unique in its way and has both advantages and disadvantages. We just have to select the one that suits our needs.
We hope that this guide on basic cryptocurrency exchange and trading would give you a head start in your journey of Cryptocurrency trading.
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