Cryptocurrency now is an integral part of the financial mainstream, but it still has a long way to go. Despite the niche size, wealthy people around the world add cryptocurrencies to their portfolios. Large investment funds, such as Grayscale and Andreessen Horowitz, increase their holdings, Grayscale received more than $1 billion in the last 12 months from its clients. For a retail investor, it might be a good idea to follow the big fish. There are many ways to profit on cryptocurrencies, but the main two ways are trading and investing. Both of these ways require picking a good service to store and manage the funds, which can be a little challenging for a beginner. In this article, we’ll review some basic rules on how to choose a great cryptocurrency exchange. However, before digging deeper into making money, let’s see how cryptocurrency works overall.
The concept of digital currency has existed for many years. Before cryptocurrencies, there were many attempts to create some form of digital money. One of them was Ecash, which was created in 1983, and it became Bitcoin’s predecessor. In 2009, Bitcoin was created by Satoshi Nakamoto, a mysterious developer, and the new class of assets was born.
Bitcoin was the first example of successful blockchain technology implementation in finance. A blockchain is a database where the entries are sequences of blocks. Every block contains information about the previous one, its hash, and of course, information on transactions. Blockchain is a distributed technology, in the case of Bitcoin and the majority of other blockchains, copies of the database are stored on the nodes of all participants. This distribution allows making sure that nobody would be able to change the database, to reverse transactions or to add new ones without everyone knowing.
Another feature is that every user has their own wallet – to send or receive cryptocurrency, you have to know a public key which is a sequence of Hex-numbers, for example, 1PAt5oKQGBRigFDY6fB2WgQTtQJNzFyTDr. The private key, on the other hand, is a tool that allows signing transactions and managing the funds. All the assets on blockchain truly belong to their owners. Overall, immutability and true ownership are two things that differ cryptocurrencies from the government-issued fiat money.
Given all said, by now you should also have some urge to get yourself some crypto. How can a beginner do that? To enter the crypto market, you will need to make a choice of a service to use for the crypto swaps. A crypto exchange is a platform with many trading pairs between various virtual assets. To get cryptocurrency or start trading between coins and tokens, a user needs to set up a wallet first – you can read more about it in this guide of ours, and go for a service of choice.
Despite the fact that the majority of exchange services have similar rates, there are still some differences that matter. This is an important factor for both beginners and experienced traders – everybody wants to make the best out of their cryptocurrency purchases. To make the process of comparing the rates and fees more simple, aggregators like Swapzone were introduced. Beginners can convert cryptocurrency easily by following these steps:
For beginners, it’s important to find a cryptocurrency trading website or exchange with a simple interface and lots of options to choose from. If you want to succeed in the crypto journey and get the most out of your services, there is no need to go for professional trading management apps – in most cases, a well-picked exchange does a trick. To compare the differences between exchanges and make the beginning of your crypto adventure easier, use an aggregator to collect the rates for you in one place. Here’s how it works: when you put an exchange order, Swapzone requests the offers directly from the service providers and presents them in one convenient table. It’s good for Bitcoin trading, but the platform also supports many altcoins – Ethereum, Bitcoin Cash, Ripple, Tether, Monero, as well as crypto tokens.
Overall, the crypto exchange aggregator is the best choice for a novice trader. It’s pretty easy to become overwhelmed by the amount of possible options that you get when you start trading. The exchange aggregator narrows down these options, making it clear which one is more convenient and profitable. Swapzone has a simple interface, and you don’t even need to learn to read charts or be able to see Fibonacci ratios. All you have to check is the best rate of exchange for your chosen pair and the fee for the exchange. That’s important, because sometimes it may be hard for a novice trader to understand what is happening around, you have to take too many factors into account. With exchange aggregators, you do not have to worry about it. The simple conclusion is – the best cryptocurrency exchange for a beginner is a service that lets you easily choose the best options and see the full picture.