The Importance of Comparing Digital Currency Exchanges

April 19, 2018 by Adrian Thorpe

Dangers of Using as DEXNot only are there going to be some very real risks involved in investing or simply buying cryptocurrencies to use as a payment option, there are risks attached to you using digital currency exchanges too.

As you will be required to transfer your funds when buying cryptocurrencies such as Bitcoin and Ethereum into a digital currency exchange you will also be required to do so when selling any cryptocurrency too.

Whilst your fiat currencies are rarely if ever stored on the exchange, your cryptocurrencies will be, and therefore they are at risk if hackers manage to circumvent the security features in place or if for any reason the exchange goes out of business or is shut down by a government agency.

Therefore, when you are about to buy or sell any type of digital assets on an exchange you need to ensure that there are systems in place that will protect them should anything untoward happen to that exchange.

Fortunately, as the cryptocurrency environment has matured, so have the security features in place on most exchanges, and as such you will often find there are several guarantees in place to ensure whenever you use one of them you will never lose out should something go wrong with that exchange.

To give you some ideas of just which digital currency exchanges are the best ones to use, below I will be giving you an insight into the most popular ones and letting you know why people tend to trust them the most.

Bitstamp and Bitfinex

Bitstamp is one of the most popular digital currency exchanges, and when it comes to an exchange that does trade huge volumes of cryptocurrencies every day of the week you are going to be very hard-pressed to find a much bigger one.

By using that exchange you are going to be able to instantly buy or sell small to large volumes of Bitcoin and when selling them you can have your funds transferred into your bank account quickly too.

There are going to be the usual fees and charges and transaction fees to pay when using Bitstamp, but they are not as expensive to use as some other digital currency exchanges.

Another one that you may also be interested in utilizing and should certainly check out is the Bitfinex exchange. Not only can you buy and sell any of the major cryptocurrencies you are also going to find several advanced trading tools too.

So, if you want to margin trade or even short sell liquidity type swaps then by signing up and registering as a user of the Bitfinex exchange then that is something you can do.

To ensure the maximum of protection of user funds and cryptocurrencies you will find 99.59% of all digital assets that are sent by users to their exchange are stored offline. So, should anything untoward happen with their live exchange they do have most of their client’s cryptocurrencies stored safely, and are always accessible by the operators of that exchange.

Coinbase and Kraken

If there is one digital currency exchange that you have probably heard of before it is Coinbase, for they have very quickly established themselves as one of the major exchanges.

What people do like about that exchange is that they have also made the concerted effort to get licenses to operate in several different countries of the world, and as such users do have additional protection when using the services of Coinbase.

You will find that when you sign up as one of their accounts you can make use of their own standalone digital wallet and that will allow you to store your Bitcoins in that wallet and then have direct access to their exchange to buy and sell Bitcoin instantly.

There have been a few changes here and there recently to the Kraken exchange, and as such you will find that they do not accept customers from all four corners of the globe, so it is important to check whether you will be allowed to use their exchange before you waste any time signing up.

You will find a range of trading options on their platform and they do accept a range of different fiat currencies and cryptocurrencies too. However, you will always also be best advised to find out what their fees and chargers are before you make use of any of their services to ensure you are not paying more than you would on another digital currency exchange!