What is a Cryptocurrency Exchange and How Does it Work?
Investment in crypto assets at the end of the year 2022 is a good idea, for many experts believe the market will boost in the coming 2023, and the new bull trend will start. Now at the end of 2022, crypto prices are low, and it is possible to buy the most promising of them and hold them in an account until the market trend changes. Or it is also possible to trade digital assets and make a profit daily. One way or another, you need a reliable platform where you can buy coin crypto and store or trade it efficiently and safely. In this article, we will discuss the main features of a reliable cryptocurrency exchange and give you one good example.
What to Look for when Picking a Crypto Platform?
Here are the main factors to pay attention to:
- The level of safety
- The number of crypto assets supported
- The opportunity to use fiat money
- Convenience
- Client’s support
- Speed of transactions
- Fee policy.
Crypto exchanges of a centralized type comply with all these requirements. Such platforms have the highest level of safety and offer a wide range of crypto trading tools, for example, trading with leverage, futures derivatives, p2p, margin, spot, etc. Besides, large and credible centralized platforms allow cryptocurrency buy with fiat money using a bank card.
For all services and transactions, exchanges charge fees. Every platform has its own fee policy. Sometimes fees vary depending on the financial instrument used, and sometimes it is stable. For example, the WhiteBIT platform charges a fee of 0,10% regardless of the trade you make and the amount you convert.
How to Trade Crypto on WhiteBIT?
If you are a novice trader, use the WhiteBIT demo account in parallel with the WhiteBIT blog, where you will find the guide to buying crypto. Demo trading will help you handle all the exchange tools and understand how they work in practice. Then when you are ready, you need to register an account, pass KYC, add your bank card, deposit money to your account (fiat money) and go to the WhiteBIT calculator. It will display the current price for the crypto you want to buy in the equivalent of your currency. Then you pay the fee and receive your coins.
Summary
A cryptocurrency exchange is a virtual currency exchange where you can trade cryptocurrencies for other digital or traditional currencies. You can have an account with the exchange and trade for a fee or make payments in cryptocurrencies. Virtual currency exchanges are online platforms that let you buy, sell, exchange or trade cryptocurrencies for other digital currencies or traditional currencies like US dollars or Euros.
Many virtual currency exchanges don’t accept payment in fiat (old) currency so they’re not technically exchanging it, they’re just providing a trading platform where crypto traders can swap one crypto coin for another. Some virtual currency exchanges allow you to buy coins directly from them but usually they don’t allow you to do this with fiat currency. Most of the time when you buy a coin through an exchange you are buying it from another user of that exchange who wants to sell their coins for fiat currency.
