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What is a Crypto Exchange — and Which Exchange Should You Use? A Beginner’s Guide

By Sarah Thomas
March 02, 2023

Even if you’ve not yet dabbled with cryptocurrencies, you’ve no doubt heard about the hype surrounding them.

Bitcoin and its contemporaries are disrupting the world of finance in a big way, and crypto exchanges have helped to make digital assets like this more accessible to the masses. So what is an exchange, what does it do, and which one of the many competing platforms should you choose for your own crypto trading and investment activities?

Crypto

What is a Crypto Exchange?

In essence, a crypto exchange is an online platform or digital marketplace where people can buy, sell, and trade cryptocurrencies. It’s similar to stock exchanges like the Nasdaq and NYSE but with digital currencies instead of stocks.

Exchanges act as middlemen between buyers and sellers by allowing them to deposit funds into their accounts before trading. When you place trades on an exchange, it will be matched up to orders from different users to complete transactions quickly.

Crypto exchanges come in many shapes and sizes – some are designed for beginners, while others cater more towards experienced traders looking for advanced features such as margin trading options, or access to hundreds of coins across multiple markets around the world. And remember that these assets can also be used for gambling.

There are also decentralized exchanges (DEX) which allow users to connect directly with each other without needing any third party involvement—providing extra security benefits over traditional centralized platforms but often at the cost of added complexity when first starting out.

Understanding Fees and Security When Comparing Exchanges

When it comes to choosing a crypto exchange, two of the most important aspects are security and trading fees.

Exchanges that offer low or no trading fees can be attractive, but make sure they also provide secure services.

Before signing up to any platform, read reviews from other users and research what kind of security measures they have in place (e.g., two factor authentication).

It’s also important to understand the different types of trading fee structures as these vary widely between exchanges – some charge flat rates for every trade, while others take a percentage when you buy or sell coins. It’s wise to factor in all costs associated with each exchange before committing your funds, including withdrawal and deposit fees if applicable, as well as any extra charges for using advanced features such as margin trading options etc.

Finally, remember that cryptocurrency is still largely unregulated, so always do your own due diligence before depositing money into an account.

How to Get a Free Sign Up Bonus (e.g. for the KuCoin Exchange)

For those looking for extra value when choosing a crypto exchange, the KuCoin referral program offers an impressive incentive to get you involved with this particular exchange.

Typically you’ll be required to open an account, and receive a discount on fees that you’d otherwise have to pay in full without the referral deal being activated.

Many of the other top exchanges, including Binance and Coinbase, have their own sign-up bonuses and offers for new and existing customers. Play the field and take advantage of any that catch your eye.

Final Tips on Picking the Right Crypto Exchange for You

Ultimately if you want to pick the best crypto exchange for you, it comes down to a variety of factors which are different for each user.

Start by researching which exchanges offer access to the coins and tokens you want to trade, as well as their fee structure and security protocols.

Next, read reviews from other users and make sure they have good customer service before signing up—as this can become important if anything goes wrong in future. Once happy with your choice, it’s time to claim any sign-up bonuses available. The rest is down to you!

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Sarah Thomas poker author
Written By.

Sarah Thomas

Sarah Thomas is a content writer for entertainment websites. In her free time she enjoys playing all sorts of games, both live and online.

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