Some coins are so new that they are only available on a few exchanges, but there are more options.
Once you’ve done your research about how to get started with cryptocurrency and picked a type of coin to buy, the next step is to select an exchange. There are almost as many options to consider with this decision as well. There are a few established exchanges and many new ones. Knowing what you plan to do with your cryptocurrency will help you pick the best platform. You should consider how often you want to buy and sell coins, whether dealing in futures is an option and how important privacy and control are when it comes to managing your virtual money.
If you’re looking for an app to trade your crypto, we’ve got you covered there, too.
Here are six options to consider for opening up an account and joining the world of decentralized finance, if you decide that the financial risk and potential environmental impact of this investment are acceptable. It’s relatively easy to buy established coins such as Bitcoin and Ethereum, but the process is more complicated for newer coins such as Bonfire and Safemoon.
If Bitcoin is the best-known cryptocurrency, Coinbase is the best-known exchange. The platform was founded in 2012 and went public this year. The platform offers insured wallets for investors and traders. Although the platform has an easy-to-use interface, one disadvantage is that the user does not control the keys to the crypto wallet, which some see as a potentially fatal flaw. Coinbase Pro has a cheaper fee structure and more options for advanced users. Coinbase charges higher fees for customers who use the basic product.
The company also carries data breach insurance and investors’ cash is stored in bank accounts insured by the FDIC. This provides more protection against scams than many other trading platforms.
Binance Smart Chain
Binance is an established exchange with a high volume of trading. Binance Smart Chain was built to use the Binance Chain to enable smart contracts. According to the white paper that describes BSC, this relatively new service combines the high performance of the native DEX blockchain with a friendly smart contract function. The service also combines Deputy Proof of Stake with Proof of Authority to validate transactions, which is a distinctive approach.
BSC is one way to buy the new Bonfire coin. Buyers have to purchase Binance coins to then purchase Bonfire.
This is one of the newer exchanges. It opened in 2017. The platform is a digital asset exchange/cryptocurrency exchange that uses a multilayer and multicluster architecture. The exchange sells a wide variety of coins and buyers can use fiat currency and cryptocurrency to buy virtual money. Some sites require all transactions to be completed in virtual currency.
BitMart was one of the first exchanges to list the SafeMoon currency before the currency gained a lot of momentum.
The platform also has a token of its own, the BitMart Token, which is based on the ERC20 standard. Owners can use the token to vote on new projects and qualify for a discount on trading and transaction fees. The platform also has an app. There are a few U.S. states and countries that do not allow residents to use the platform, so check the site for that list before signing up.
SEE: Bitcoin cheat sheet: everything professionals need to know (TechRepublic)
The initial goal of cryptocurrency was to create a financial system without the bureaucracy and controls of traditional banking. Bisq builds on that idea by offering a peer-to-peer, decentralized and non-KYC Bitcoin and crypto exchange. KYC–know your customer–is a fundamental element of the traditional banking system as it relies on proof of identity to access accounts. With this platform, only the user touches the funds. Bisq is available to anyone with a computer or smart phone and offers more than 25 payment options and an app for Android and iOS. This design is best for dissidents living within an oppressive regime, people looking for privacy, or people who don’t have government-issued identification, according to Investopedia. The platform is not designed for active trading and transaction speeds can be slow.
This platform offers the option to buy Bitcoin futures instead of the currency itself. This means speculating on the future price of the cryptocurrency, without owning any of the coins. Two benefits of trading in futures are that futures contracts are traded on an exchange regulated by the Commodity Futures Trading Commission and futures are settled in cash, so buyers don’t need a crypto wallet, according to Investopedia.
The firm provides all the standard investment services in addition to Bitcoin futures and has individual, retirement, trust and institutional accounts.
If you want to use a familiar financial manager for your cryptocurrency speculations, Charles Schwab also offers Bitcoin futures. Schwab customers with a futures account can trade in certain Bitcoin futures products. Customers also can trade certain over-the-counter trust products, although the firm warns that these products “can be expensive with higher operating ratios and other significant risks.” The company also predicts that U.S. Treasury Secretary Janet Yellen may introduce more regulations to the cryptocurrency market because she mentioned the virtual currency as a concern during her confirmation hearing in January.