Trading cryptocurrencies is becoming more and more popular. However, this is not only with individuals. In fact, some companies invest their capital into crypto. Simultaneously, cryptocurrencies are becoming a standard payment method, just like credit cards, cash, or other regular fiat currencies.
The cryptocurrency exchange is becoming as common as regular currency exchange and has as much demand as conventional banking services. Now, digital wallets are replacing the traditional bank account. That is why Finance Brokerage has examined most crypto exchanges worldwide and delivered a detailed analysis of each exchange.
Trading cryptocurrencies is not as easy as it is generally perceived. We continuously hear about cryptocurrency-related scams, substantial price fluctuations, high risks of losing money, etc.
The core concern while trading Bitcoin, Ethereum, Bitcoin Cash, or any other cryptocurrency is safety. That is why our expert analysis is so essential. So are the ratings and reviews from numerous real users. Our list of crypto exchanges provides you with the most vital information about a particular crypto exchange.
What is a crypto exchange?
In order to select an exchange that fits you best, it is vital to understand what a crypto exchange is. A cryptocurrency exchange or is an institution that enables traders to exchange digital currencies for other assets like conventional currencies. Crypto exchanges also allow the exchange of one digital currency to another digital currency. For example, you can buy Bitcoin on some crypto exchange with United States Dollars or with Ripple.
Such exchanges typically make money with transaction commissions or by merely charging some fees. These can be monthly or annual membership fees. Notably, some exchanges allow traders to withdraw cryptocurrencies to digital wallets, while others may not allow this.
Also, some exchanges simply facilitate peer-to-peer cryptocurrency trading. Such exchanges are called decentralized exchanges. It is important not to confuse cryptocurrency exchanges for cryptocurrency wallets or crypto brokers.
Crypto exchanges are beneficial when you want to trade with unconventional cryptocurrencies (altcoins). In contrast, crypto brokers allow you to trade with the most popular cryptocurrencies like Bitcoin, Ethereum, Ripple (XRP), and Litecoin. Not to mention the fact that one cannot purchase altcoins, like Litecoin, directly with fiat currency. Also, not every exchange supports each and every coin. Thus, traders have to use more than one platform.
Legal and regulatory elements
The majority of the crypto exchanges have no regulation. But mostly, the law governing such exchanges varies based on the location of the exchange. For example, exchanges located in the US are subject to state regulations as well as federal laws.
In the UK, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) require companies to follow good practice on how banks must handle the financial crime risks posed by crypto-assets.
For example, in Hong Kong, the cryptocurrency exchange is subject to regulation only if it handles fiat currencies along with digital ones. Moreover, in Australia, the exchange operator must hold an Australian market license with appropriate authorizations by ASIC.
The world of crypto, as well as crypto exchanges, is hyper-competitive. Each exchange has different conditions and offerings, including available coins. Some exchanges are designed for newbie traders, while others target experienced traders.
We aim to provide information on the most popular and interesting crypto exchanges rather than advocate or promote any in particular.
RISK WARNING: Cryptocurrencies are complex, and decentralized financial instruments, price movements, regulatory status, etc., may cause significant risk. FINANCEBROKERAGENEWS LTD is not responsible for any loss of money when trading with any of the exchanges listed above.