Thanks to the success and popularity of cryptocurrency in the world, there are a wide variety of cryptocurrency exchanges online that can be used to trade today.
In this article, we will provide you with information on how cryptocurrency exchanges work and what you can expect when you start using an exchange.
How Do Cryptocurrency Exchanges Work?
If you’ve traded stocks online in the past, you know that a stock exchange is used for someone to buy assets, sell them, or purchase shares/derivatives for various stocks that they are interested in investing in.
With a Cryptocurrency Exchange, you will be using cryptocurrency pairs in order to profit from volatile currency rates.
To get started with trading cryptocurrency you should choose an exchange like coinbase.com or binance.com and then create your exchange account. Once you have an account, you will need to use your crypto wallet to purchase some cryptocurrency then transfer those funds over to your cryptocurrency exchange address that will have been provided for you by the exchange.
Most cryptocurrency exchanges don’t accept U.S. Dollars so you will need to follow the steps above when creating your account but there are some exchanges that do accept U.S. Dollars as well as a variety of other options including PayPal and credit cards.
About Cryptocurrency Exchanges
As we mentioned above, coinbase.com is one of the top exchanges online for cryptocurrency investing. This exchange has actually been online since 2012 and they offer users the ability to trade a wide variety of currencies including Litecoin, Bitcoin, and Ethereum.
Binance.com has been online since 2017 and as of today, it’s considered to be one of the largest exchanges in the world since users can trade over 100 cryptocurrencies on this exchange. This company has been working hard to lead the advancement of cryptocurrency as an accepted payment method online including being behind the development of Stable Coins and Simplex, a payment processor that will enable traders to use debit and credit cards to purchase cryptocurrency.