Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
Subscribe
Money Investors
Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
  • Cryptocurrencies

Where To Buy or Sell Cryptocurrencies

  • December 8, 2021 5:57 AM
  • Augus Curtis
Cryptocurrencies buy
Total
0
Shares
0
0
0

Once we know what cryptocurrencies are, blockchains, and to see investigated about interesting cryptocurrencies, we want to start buying this digital asset and we ask ourselves the following question. Where to buy cryptocurrencies?

To buy cryptocurrencies we can go to two types of platforms: Exchanges (or exchange houses) and CFD brokers. The latter can be an exchange platform since there are brokers that handle digital currency. However, in this article, we are going to know what Exchanges are and which are the most popular to exchange cryptocurrencies.

Access here if you want to know about our course on cryptocurrencies and blockchain, which will help you to understand the cryptocurrency market in depth.

Money Investors is made up of an expert finance team that will help you learn about the world of investments so that you can avoid scams and deceptions. In addition, we believe that the best way to act in a market is by knowing how it works and having the ability to manage the information yourself.

Table of Contents

  • What is a Exchange?
  • Types of Exchanges
    • Centralized exchanges (CEX)
    • Decentralized Exchanges (DEX)
  • How do exchanges work?
  • Factors to choose between Exchanges
  • Conclusion

What is a Exchange?

An Exchange is a platform that allows you to exchange fiat money for cryptocurrencies. If you already have cryptocurrencies, and you want to exchange them for others, exchanges also give you the opportunity.

Currently, there are multiple platforms that allow these exchanges, and they can be distinguished by types and by countries where they operate.

BuyBitcoinswithCreditCard

Types of Exchanges

We can classify Exchanges mainly into two types: centralized and decentralized. The main characteristic that distinguishes them is who has control of the funds.

Centralized exchanges (CEX)

Cryptocurrencies appeared on the market with a differentiating feature, decentralization. However, most cryptocurrency trading takes place through centralized media, such as exchanges.

In this type of exchange, the negotiations are mediated by a trusted third party who is in charge of supervising the exchanges, made by clients or traders, through the platform.

That is, centralized exchanges are those where there is an intermediary who supervises the transaction or exchange so that control of your funds is no longer solely in your hands.

The third party that mediates in the operations is the company in charge, which is in charge of controlling the entrances and exits on the platform. In addition, you receive a commission for each negotiation that takes place.

These companies govern the cryptocurrency market and the commissions that must be paid for making transactions within their platform.

These platforms comply with the KYC and AML regulations.

KYC, or know your customer (Know your customer): is a process by which the company identifies and verifies the identity of the operator.

AML, or prevention of money laundering (Anti-Money Laundering): using AML is to deter customers from fraud and crimes related to money laundering.

The most popular centralized exchanges known are: Binance, Bitfinex, Bittrex, Coinbase, Kraken and Poloniex.

This type of platform allows another extra classification, where we differentiate by traditional or cryptocurrency brokers:

Traditional Exchange platforms have a functioning that we could assimilate to the concept of a traditional money house. That is, users can negotiate with each other, paying a commission per transaction, established by the platform’s mediators.

 The cryptocurrencies brokers are in charge of direct exchanges, thereby facilitating negotiation.

Buy cryptocurrencies

Decentralized Exchanges (DEX)

Decentralized exchanges are those where there is no mediator figure. The control of transactions or negotiations is carried out through software that allows clients to carry out their exchanges on a peer-to-peer basis. (P2P)

These exchanges allow people interested in the exchange to agree to their commissions freely.

Be careful with this type of platform if you do not know the value of the exchanges or the operation of the cryptocurrency market, since, in these sites, it is where the majority of frauds and scams are committed.

Decentralized exchanges allow direct negotiations between clients, providing privacy and anonymity for both parties. Many people and governments argue that these types of negotiations, as they are not regulated by third parties, become an ideal place for money laundering and financing of activities that can undermine the common good.

Within this decentralized category, some of the most popular exchanges are: Bitsquare, Changelly, EtherDelta, OpenLedger, 0x, ShapeShift, and Waves.

How do exchanges work?

The first step is to decide the type of Exchange that we will use to carry out our exchanges. A centralized or decentralized Exchange.

Second, the client must open a request that reflects the number of cryptocurrencies you want to buy or sell, and the price at which you want to exchange cryptocurrencies. The Exchange opens an order book where the user’s offer is published so that any interested party can see and access it.

If you want to sell (Maker), you must publish it and the application will show your offer to other users. On the contrary, if you want to buy (Taker), you must go to the Orders Book to review offers and select the one you prefer.

Depending on the platform with which you make your exchanges, they will allow you cash, credit or debit card, transfers or some digital payment systems such as PayPal.

Maker are users who create offers within the exchange platform. The fees for these users are usually less as they attract more customers within the Exchange.

Taker are users who accept or select offers that appear in the Exchange or market. The rates for these clients are usually higher.

Factors to choose between Exchanges

Now that we know what Exchanges are, and what types we can find, we must take into account some factors before choosing a platform.

Cryptocurrencies available on the Exchange: when we are clear about what cryptocurrency we are looking for, we must check which platform offers us the cryptocurrency, since not all exchanges operate all cryptocurrencies on the market.

Security: The most secure platforms have funds in offline deposits to protect them from attacks. In addition, we must take into account that the exchange house has higher liquidity to secure the funds.

Deposit and withdrawal limits: like any ATM or bank, Exchanges also establish withdrawal or deposit limits. The amounts are usually high, but check well based on your investment needs.

Wallet: In a previous article, we talked about digital wallets and the types that we can find. Some of the exchanges have integrated wallets so you can manage money directly from your wallet.

Commissions and payment methods: as we have mentioned previously, each platform differs in turn, in the way of establishing commissions. Each Exchange has different commissions, and they allow payment through different means. Choose the one that suits your needs.

Conclusion

If we are interested in trading cryptocurrencies, we must first know what they are, how and where to do it. Exchanges are the ideal place to buy/sell our digital assets, however, there are different types depending on our needs or desires.

If you opt for a centralized exchange, carefully review the security conditions, commissions, payment methods and available cryptocurrencies. If, on the other hand, you prefer a decentralized exchange, try to be well informed of the operation and the values ​​of the market. In this way, you will avoid scams or fraud.

Probably wanna read:

  • Cryptocurrencies: What are they, when they appeared and how do they work
  • Blockchain: What it is, how it works, types and benefits for cryptocurrencies
  • Bitcoins: 5 keys to understanding what it is about
Total
0
Shares
Share 0
Tweet 0
Pin it 0
Augus Curtis

I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make it and also to invest it. Here I share some ideas about business and money.

Related Topics
  • Cryptocurrencies
  • Digital Wallets
  • Exchanges
  • Financial Advisors
  • Financial Education
  • Investing
  • Money
Editor
Augus Curtis
I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make…
Featured Posts
  • Quantitative Research Methods 1
    Quantitative Research Methods: Driving Data-Driven Decision Making
    • May 29, 2023 8:31 AM
  • Quant Researchers 2
    The Role of Quant Traders in Modern Financial Markets
    • May 29, 2023 7:33 AM
  • Leveraging Debt for Investment 3
    Leveraging Debt for Investment: Strategies and Considerations
    • May 24, 2023 8:37 AM
  • Calculate and Interpret Financial Leverage Ratios 4
    How to Calculate and Interpret Financial Leverage Ratios
    • May 24, 2023 7:57 AM
  • Pros and Cons of Financial Leverage 5
    Pros and Cons of Financial Leverage: Assessing Risk and Reward
    • May 24, 2023 7:41 AM
Recent Posts
  • Financial Leverage in Business
    The Role of Financial Leverage in Business Growth and Expansion
    • May 24, 2023 7:16 AM
  • Understanding Financial Leverage
    Understanding Financial Leverage: A Comprehensive Guide
    • May 24, 2023 6:55 AM
  • Dreaming with Money
    What does it mean to dream with money? Know the different meanings
    • May 20, 2023 11:48 AM
Categories
  • Business (90)
  • Cryptocurrencies (35)
  • Lifestyle (42)
  • Money (150)
  • Opinion (74)
  • Travel (2)
  • Uncategorized (1)

ABOUT:

Money Investors is an economic and financial blog that wants to be a source of development of knowledge of the latest advances in studies related to the economy. Analyzing the various most relevant international opinion sources such as The Wall Street Journal, The Guardian, Market Watch, Market Times, BBC News, The New York Times and El País from Spain, we will provide diverse and eclectic approaches for understanding the economic panorama in depth, with a social and critical perspective of the various market players, as well as the institutions and structures that condition the behavior of these markets.

PRIVACY:

We will never disclose or sell your email address or any of your data from this site. We do highly welcome posts and community interaction, and registering is simply part of the posting system.

DISCLAIMER:

Money investors is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. Opinions expressed on this site are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. Money Investors exist to thought to provoke and learn from the community. Your decisions are yours alone and we are in no way responsible for your actions. Stay on the righteous path and think long and hard before making any financial transaction! Disclosures.

Money Investors
  • About Us
  • Cookies Policy
  • Privacy Policy
  • DMCA
  • Term Of Use
  • RSS
  • Sitemap
  • Contact
© 2023 Money Investors LLC. A Curtis Times Company. All Rights Reserved.

Input your search keywords and press Enter.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT