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The Right Way To Select A Cryptocurrency Exchange

The Right Way To Select A Cryptocurrency Exchange - Partner Content

The cryptocurrency market is dependent on technology and its advances. Many individuals rely on, a trading platform for Bitcoin that has been profitable for many years.

The term Exchange applies to all technological and digital platforms that allow the Exchange to purchase and sell digital assets.

There are a large number of Exchanges that allow users to invest in various types of traditional financial actions.

These platforms arise so traders or investors can operate efficiently and reliably in the various assets offered by financial markets, whether traditional or digital.

The profits obtained by the negotiations through these platforms are given by the variation in the price of cryptocurrencies in the digital market; this happens thanks to the fact that the real value of the digital currency is operated at the moment.

Thanks to these platforms, the digital economy has been active, consequently allowing the Exchange of cryptocurrencies from anywhere in the world without geographical limitations, where profits can even be converted into legal tender at meagre commissions.

Origin of the exchanges

Bitcoin became known automatically, and the first Exchange in the world was created, whose name was NewLibertyStandard, which then disappeared from the financial market in a period no longer than one year.

With time, new Exchanges emerged, as with Mt.Gox. After reaching significant levels of popularity, unfortunately, in a similar period, the first Exchange was hacked, leading to a robbery millionaire of around 2,000 Bitcoins.

Despite all these drawbacks, Exchanges have emerged and have been created with optimal security levels, currently offering their users a variety of regulated brokers and the best options when investing.

The exchange platforms are a fundamental part of the cryptographic investment process, which represents a significant challenge when positioning since their own users will be the ones who give the corresponding place to the various options that arise.

Fundamental aspects before choosing an Exchange

One of the main dilemmas when investing is the correct choice of the cryptocurrency Exchange, but for this choice, it is essential to consider some aspects that will determine the fruit of the investments to be made.

  1. The security of the exchange platform.
  2. The conversion capacity of your capital, the liquidity that demonstrates your financial journey.
  3. The commission fees per transaction.
  4. The financial investment markets that it offers.
  5. The opinions of its users.
  6. The speed of processing operations.
  7. The entities that regulate operations.

The exchange selection process is complicated; this requires time and research since we can be victims of fraudulent platforms and lose our money and time.

Classification of cryptocurrency exchanges

A wide variety of Exchanges offer various services to their users; their platforms have in common the participation in the digital financial market of cryptocurrencies offering various essential tools so that users have optimal experiences.

Among the most used tools are fundamental and technical analysis and a series of indicators that allow such investigations to be much more comfortable and easy.

The Exchanges are classified into traditional OTC Platforms, Cryptocurrency brokers, and decentralized Cryptocurrency exchanges.

Traditional Exchange: they are usually regulated platforms under the best standards and regulations, such as KYC and AML; they are commonly used to carry out any operation, be it the purchase, sale, or Exchange of cryptocurrencies.

OTC Platforms: These platforms offer direct negotiations between users keeping their information guarded and private; it is simple; these applications allow negotiations to be carried out even at prices outside the market.

Cryptocurrency broker: This type of Exchange offers essential services for cryptocurrency exchange, where users exchange their digital currencies for others of their choice; they do not require complex operations.

Decentralized cryptocurrency exchange: This platform usually offers services similar to a traditional Exchange, except that there are no intermediaries, the levels of security protection for its users are extremely high, and they also can offer additional services such as smart contracts.


The correct Exchange must comply with the factors mentioned above; it must be safe and reliable; remember that you will deposit the capital that you consider, but it costs time and effort to obtain it.

So at this time, the users’ opinions will be critical points and in favour of the choice since you want to save the money invested for not considering all the necessary aspects. 

Feature Photo by Shubham Dhage on Unsplash

DISCLAIMER: This article is sponsored and does not substitute for professional advice or help. Any action you take upon the information presented in this article is strictly at your own risk and responsibility.

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