Edited on Canva
In the crypto space today there are so many cryptocurrency exchanges which anyone who is interested in crypto trading and [investment] can use. Most of them are widely used like Binance, eToro and the rest.
In my previous post on some of the tips a newbie should know before going into trading, I mentioned cryptocurrency exchanges as one of the tools for crypto trading see post here.
So this article will be delving in on what cryptocurrency exchanges really are, some of the crypto exchange platforms and features.
- Cryptocurrency Exchanges: Explained
Basically, cryptocurrency exchanges are just online spaces where trading of digital currencies (crypto) like Ethereum, Bitcoin, Hive, Leo token and others, are carried out.
Simply put, cryptocurrency exchanges play the role of third parties or intermediaries between buyers and sellers, thereby providing a digital marketplace for people to trade cryptocurrencies for a fee on each transaction which depends on the exchange and the transaction amount.
Not only that, they offer other services like tracking, securing, and storing crypto assets. That is to say, traders have the opportunity of viewing real-time pricing information on of many cryptocurrencies, they can buy any crypto of choice at any favorable price and then have them stored in an integrated or native cryptocurrency wallet.
Cryptocurrency exchanges offer multi-function services to their numerous customers and are well secured. Although most of them offer similar services, but some are slightly different, depending on the the crypto project and ones usage.
Some Types Of Cryptocurrency Exchanges
Let's take a look at some of the crypto exchange platforms that are available to traders and investors.
- Brokerage Platform
Cryptocurrency brokerage (brokers) are online trading platforms just like physical currency exchange example Beareau de change for Fiat. They act as intermediaries in the crypto space and have a network of dealers who hold large pools of cryptocurrency. They are convenient, easily accessible and provide fast trades services.
Some top online crypto brokers are
- Robinhood
- Interactive brokers
- Webull
- TradeStation
- Binance.US
- Coinbase, etc
- General Trading Platforms
General cryptocurrency trading platform is just like a website where individuals trade with each other. Here one can create an account, funds the wallet and then begin to trade with other users in same platform from across the world. Each transaction carried out has a fee attached to it.
Some of the top general trading platforms are
- Zengo
- Prime XBT
- Binance
- Coinbase
- ChangeNow
- Direct Trading Platforms
Exchanges that support direct trading are typically application or web-based platforms designed to connect specific individuals for trading purposes. These are often used for international trading and do not rely on market rates. With direct trading, individuals from both parties agree on a price and trade at the accepted rate.
Some Features of Cryptocurrency Exchanges
Although there are so many features which can be found in crypto exchange platforms, few will just be discussed. Let's take a look at some of the few;
- Coin tracking
This is one of the most important feature of crypto exchange platform. With coin tracking, users choose any cryptocurrency they want to monitor and once the currency reaches a specific price point, they are either alerted or trades happen automatically as the case may be.
- Coin Support
Another feature is coin support.
This simply means the various digital currencies that an exchange platform allows example Bitcoin, Ethereum, etc for trading and individuals who wish to trade these coins may require more advanced solution.
- Fiat Currency Support
Fiat currency is a legal tender backed by the government to which the currency
belong to. In some exchanges, deposit of fiat currencies are allowed but for some, the fiat is converted to digital currency before being deposited.
Some popular ones are
- Binance
- Kraken
- Bybit
- Coinbase
- KuCoin
- Trading Volume
This is another unique feature of a Crypto exchange platform.
Trading volume is basically the total amount of digital assets or cryptocurrency which an individual can trade during a certain period of time.
In some exchange platforms limits or extra charges are set for high-volume trading, while others have unlimited trading.
- Crypto Payment Methods
Payment methods has to do with the mode available for users to make their initial crypto investment deposit after registering.
Some platforms base strictly on cryptocurrency deposits, while others accept wire transfers or credit card deposits.
Identity Verification
Identity verification is also one of the most important feature of an exchange platform.
Each user of the platform upon registration is required to provide a valid means of identification. This added security measure is to ensure that trades/ transactions are valid and with no fraudulent activities.
This feature is mainly seen in direct trading platforms than general exchanges.
- Mobile Trading
Being an online trading platform, not only can traders conduct their businesses on PCs, there are also mobile apps available. With this users can assess their funds, trade assets and withdraw funds on the go.
Some crypto mobile apps are
- Uphold
- Zengo
- Bybit
- OKX
- Bitstamp
- NAGA etc
My Participation in Leo Power Up / My Leo Goals
It's another exciting time of the month again 15th of August, and it's #lpud.
The monthly #lpud had been modified in such a way that everyone can participate.
There are now categories for users to participate in
50 LP or
150 LP
Also all participants stand a chance of winning prizes like various Leo delegations including the #lpud by. That's the part I like most.
My Leo Power Up Journey
It's my 6th #lpud since getting onboard Leo platform and I'm excited to be part of this month's #lpud.
July 15th 2023, I became a Cub as I was able to power up 500 Leo token to get me to the Cub level. That's me achieving my July Leo goal.
Having a 5k LP, my next goal is to achieve 6k Leo Power before the year ends.
For August, I had planned on powering up 500 Leo token but it did not really work out but I'm not discouraged as I am still making conscious efforts to ensure that I accumulate more Leo tokens through in the future.
Here's how I powered up for August
Wallet Before Power Up
Wallet After Power Up
I powered up 200 Leo token bringing the total of my LP to 5,200 LP.
This 200 Leo token powered up was earned mainly from engagements in the platform; upvotes from Leothreads and authors reward on long form contents.
With this, my Leo goal of 6k LP by year 2023 ended is in the process of being achieved.
This is how I'm take part in cryptocurrency investment.
Happy #LPUD all.