The first decentralized digital currency was Bitcoin, created in 2009. From then on, many other cryptocurrencies have emerged. They are often called altcoins, or alternatives to Bitcoin. Examples of altcoins include Ethereum, Ripple and Litecoin.
Cryptocurrencies are often traded on online platforms and can also be used to purchase goods or services. So where to trade cryptocurrency these days? Our answer here!
The rise of cryptocurrencies
Cryptocurrencies have only been around for about 15 years, but they’ve already made a lot of noise. Bitcoin, the first and best-known cryptocurrency, was created in 2009 in response to the global financial crisis. It was designed as a decentralized, peer-to-peer alternative to traditional fiat currencies.
The reason for its creation was to take power away from central authorities, such as banks and governments. Bitcoin was also meant to be a more efficient way to transact, since it eliminates the need for middlemen like banks or credit card companies.
It was then not surprising to see the number of crypto-currencies explode. There are over 5,000 different types of cryptocurrencies today, with a total market capitalization of over $1 trillion.
What drove this boom?
The growth of cryptocurrencies is explained by several factors. First, there were more and more people who wanted to invest in cryptocurrencies. This is due to the growing awareness of the potential of these assets, as well as the growing number of success stories.
Second, the development of new technologies has made it easier for people to invest in cryptocurrencies. In particular, the rise of blockchain has made it possible to create and trade cryptocurrencies without relying on a central authority.
Finally, the economic climate has been favorable for the growth of cryptocurrencies. With interest rates at historic lows and traditional investments having lost their luster, more and more people sought out alternative investments, such as cryptocurrencies. Is this still the case today? Find a suggested answer in this article.
In parallel, many crypto trading platforms have appeared. Let’s analyze this “place of exchange” for cryptocurrencies in more detail.
Crypto trading platforms
Cryptocurrency exchanges are websites that allow you to buy, sell, or trade digital currencies. These platforms usually charge a fee for each transaction. Some of the most popular cryptocurrency exchanges include Coinbase, Kraken, and Binance.
When choosing a cryptocurrency exchange platform, it is important to consider different factors.
The determining factors
You will discover in this part a non-exhaustive list of determining factors. We think in particular of the quality of the trading application, which could not be addressed here.
The fees charged by a platform may vary depending on the type of transaction. For example, buying and selling bitcoin on Coinbase will incur a fee of 1.49%. However, if you trade other altcoins on the same platform, different fees may apply.
Some of the most common fees include:
- Trading fees: Charged when you buy or sell cryptocurrencies on the platform
- Withdrawal fees: charged when you withdraw funds from the platform to your personal wallet
- Deposit fees: applied when you deposit funds on the platform
Safety and Reliability
When choosing a cryptocurrency trading platform, it is important to consider the security and reliability of the site. This is especially important if you store large amounts of digital currency on the platform. Some things to note include, for example, two-factor authentication and SSL encryption.
The effectiveness of a platform is measured by how quickly you can buy, sell or trade digital currencies. A good platform must also have these different important points:
- User-friendly and easy to navigate interface
- Menu with all options available and easily accessible
- List of all digital currencies available on the platform
Before making your choice of platform, it is essential to evaluate the customer support offered. This is especially important if you are new to digital currency trading. A good platform should have an FAQ section and 24/7 customer support.
Top 3 Crypto Trading Platforms
When it comes to trading cryptocurrencies, there are a number of different platforms you can choose from. Each platform has its own unique features and benefits, so it’s important to choose the one that best suits your needs. Here is our selection of the moment.
Founded in 2012, Coinbase is one of the most popular digital currency exchanges. It allows users to buy and sell cryptocurrencies and store currencies in an online wallet. It has an interface suitable for any profile and is known for its high security.
Coinbase also offers a mobile app that makes exchanging digital currencies on the go even more convenient. It also holds a feature called GDAX, which allows users to trade cryptocurrencies on a more advanced exchange.
However, one of the disadvantages of Coinbase is that it only supports the following currencies:
Kraken is another popular cryptocurrency trading platform that offers a very efficient interface too. It supports a wide range of digital currencies, including Bitcoin, Ethereum, Litecoin, Monero, and Zcash. Kraken also has a mobile application for remote trading.
One of the main advantages of using Kraken is that it offers low transaction fees (1.5%) and free deposit fees.
The only drawback is that its platform can be difficult to handle for a beginner.
Binance is one of the newest players in the digital currency exchange market, as it was only founded in 2017. Despite this, it has quickly become one of the crypto exchanges. most active currencies, with more than 60 digital currencies offered.
Binance has a very user-friendly interface and also offers a mobile app for convenience. It also has low transaction fees and is one of the fastest growing platforms in the industry.
The only downside to Binance is that it does not offer Fiat-Crypto pairs, which means users can only trade digital currencies on the platform.
The number of cryptocurrencies soared as soon as the famous Bitcoin was created. We had to find a place of exchange, itself materialized by crypto trading platforms.
The choice of the right trading platform thus appeared to be decisive. Beyond our selection, each platform has its own advantages and disadvantages. These are to be compared with your cryptocurrency investor profile. Finally, it seems important to remember that there is no “perfect” platform and that each of them has its own functions.