First of all, what is an exchange of cryptocurrencies?
An exchange, cryptocurrency market capitalizations, also known as an “exchange platform” or “exchange house,” is a platform that allows its clients to operate with digital assets. Some of these exchanges have incorporated some fiat currencies to expand and facilitate the process to their customers. The purpose of these sites is to provide the tools to exchange cryptocurrencies with each other and, in some cases, with other financial assets. Let’s not talk more about technical terms, let’s evaluate the characteristics of the most popular exchanges.
How does a crypto exchange work?
Although exchanges have different procedures and interfaces, cryptocurrency market capitalizations, they all share a similar process.
Registration: the user registers on the website using the requested data. Some exchanges ask for an extensive list of data, others simply email and password.
Know your customer (KYC): the “know your costumer” policies have been implemented so that exchanges can determine if their customers are suitable for these services. You are likely to be asked to complete a questionnaire and, in addition, you will be asked for a list of personal information and copies of identity documents to verify your account. Only some exchanges such as CEX.io will request this information from you.
Deposits: the obvious next step: deposit funds to operate. You can deposit funds directly in personalized Wallets of cryptocurrencies or using fiat money, depending on the exchange. The most popular currencies are USD, EUR, GBP, JPY and KRW. The means of payment depend on the exchange. Some are more open to new methods like Skrill, Neteller or PayPal. Others have traditional payments with credit / debit cards or bank transfer.
Open and close operations: once you have available funds in your account, you will use the trading platform to trade, taking a base currency to obtain another one. The most popular markets are in bitcoin, US dollar, euro, Tether (USD ₮ – a cryptocurrency equivalent to the dollar) and Ethereum.
Settlement or withdrawal: many users will want to withdraw the money invested and convert it into fiat money again. Some exchanges allow the user to make withdrawals to his bank account or means of initial payment.
Types of exchanges and cryptocurrency market capitalizations
There are 4 types of exchanges available for users to select the one that best suits their needs. We briefly explain each one below.
Exchanges type CEX
CEX is the acronym for Centralized Exchanges: centralized exchange platforms. No matter which one we choose, there is a greater than 90% probability that our exchange platform is CEX type. Here, each transaction passes through a central authority that controls the operations on the platform.
These exchange platforms benefit by charging a commission for each transaction. On the other hand, they can charge a commission each time a deposit or withdrawal is made.
Exchanges type DEX
With the emergence of the concept of decentralization and P2P transactions, DEX -or decentralized- exchanges became popular. Here, transactions take place directly between two operators. This eliminates the need for predetermined exchange pairs since operators establish their peers and prices. Let’s say that a person wants to buy a new currency «CoinListCoin» using bitcoin. Simply place a bid price and if someone agrees, the exchange is made. The user can pay with bitcoin and receive the new currency.
These exchanges have several advantages including: cryptocurrency market capitalizations, very low or non-existent spread, instant exchanges, little regulation and very low commissions. However, this is sometimes counterproductive because security depends on the operators themselves. Therefore, if a problem occurs, the exchange will not be able to respond to the operators.
These websites are really from suppliers or distributors that allow users to buy cryptocurrencies using their local currency. Very few have a trading platform per se. Thus, users make a purchase or sale request, and the exchange is in charge of obtaining the exchange currency and sending it to the operator. This service is usually expensive, but benefits those who do not have international means of payment. Almost always, local exchanges work only with bitcoin.
Cryptocurrency market capitalizations
These funds work practically as mutual funds. That is, users deposit their funds to a company and receive the help of an “account manager” who will perform all the trading tasks so that the user obtains benefits. This service is usually quite expensive.
Our recommendations of exchange platforms or exchanges. You should look for an exchange that reflects your needs and expectations. If your purpose is to keep the coins and treat them as.
La empresa con base en San Francisco, es una de las opciones más seguras y estables para obtener bitcoins y otras criptomonedas. Con más de 13 millones de usuarios, queda claro que Coinbase es una de las opciones preferidas por usuarios en todo el mundo. El proceso de registro es completo, pero no tedioso. La compra de criptomonedas es directa e instantánea.
Otros que quieran hacer trading usando sus fondos de Coinbase, pueden usar GDAX, la plataforma de trading de este exchange. Podrá vincular su cuenta de Coinbase y empezar a hacer trading en una de las plataformas de intercambio con mayor volumen de transacciones en el mundo. También tiene un API para desarrolladores que quieran integrar servicios en otros sitios.
Ranking of the best market exchanges with cryptocurrency market capitalizations
Now that we have come a little closer to the exchanges for cryptocurrency and we know what these platforms are and what they are for, surely you have wanted to work with some of them to start your journey through the exciting world of Bitcoin.
If you are thinking of investing in cryptocurrency, it is important that you know perfectly the operation of cryptocurrency exchanges, all the transactions that we can make through them and the advantages they offer us.