Crypto trading refers to the activity of buying and selling cryptocurrencies. Cryptocurrencies are digital tokens that utilize cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrency trading can take place on exchanges. Cryptocurrency exchanges are online platforms where you can buy, sell or trade cryptocurrencies for other digital assets or fiat currencies. Bitcoin and Ethereum are the two most popular cryptocurrencies, and as a result, most exchanges list these two coins. Some of the most popular exchanges include Binance, Coinbase, and Kraken.
There are different types of exchanges, and each offers different features. Some exchanges only offer cryptocurrency-to-fiat trading, while others only offer cryptocurrency-to-cryptocurrency trading. There are also exchanges that offer both types of trading. The type of exchange you choose will depend on your trading goals.
Fiat-to-Cryptocurrency Exchanges:
Fiat-to-cryptocurrency exchanges allow you to buy and sell cryptocurrencies using fiat currencies. Fiat currencies are government-issued currencies that are not backed by a physical commodity, such as gold or silver. The most popular fiat currencies are the US dollar (USD), the European euro (EUR), and the Japanese yen (JPY).
Fiat-to-cryptocurrency exchanges are the most popular type of exchange, as they allow you to use your local 바이비트 to buy cryptocurrencies. These exchanges usually offer a wide variety of payment methods, such as bank transfer, credit/debit card, and Paypal. Coinbase is one of the most popular fiat-to-cryptocurrency exchanges.
Coinbase allows you to buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. You can also store your coins in a Coinbase wallet. Coinbase is available in 32 countries and has over 25 million users.
Coinbase charges a 1.49% fee for bank transfers and a 3.99% fee for credit/debit card purchases.
Cryptocurrency-to-Cryptocurrency Exchanges:
Cryptocurrency-to-cryptocurrency exchanges only allow you to trade cryptocurrencies for other cryptocurrencies. These exchanges do not accept fiat currencies. Binance is one of the most popular cryptocurrency-to-cryptocurrency exchanges.
Binance offers trading for over 100 different cryptocurrencies. Binance charges a 0.1% fee for trading. Binance also has its own cryptocurrency, Binance Coin (BNB), which can be used to pay trading fees. Binance Coin can also be traded on Binance.
Binance is one of the most popular cryptocurrency-to-cryptocurrency exchanges.
Hybrid Exchanges:
Hybrid exchanges offer both fiat-to-cryptocurrency and cryptocurrency-to-cryptocurrency trading. These exchanges allow you to buy cryptocurrencies using fiat currencies and trade cryptocurrencies for other cryptocurrencies.
Kraken is one of the most popular hybrid exchanges. Kraken offers trading for over 20 different cryptocurrencies. Kraken charges a 0.25% fee for trading. Kraken also allows you to margin trade, which allows you to trade with leverage.
Decentralized Exchanges:
Decentralized exchanges are peer-to-peer exchanges that do not require a central authority. These exchanges allow you to trade cryptocurrencies directly with other users. Decentralized exchanges are often more secured than centralized exchanges, as they are not susceptible to hacks.
EtherDelta is one of the most popular decentralized exchanges. EtherDelta allows you to trade Ethereum and Ethereum-based tokens. EtherDelta does not charge any trading fees.
