Cryptocurrency is derived from two words “cryptography” and “currency”. Where cryptography or encryption is the core methodology in which all the database, transactions, accounts and currency is encrypted on a decentralized system and can only be accessed by the user itself using the private and public keys.
Here currency refers to the virtual digital currency which does not have any physical form.
Cryptocurrency exchange platform are the websites or applications that are used for exchanging one form of cryptocurrency into another like bitcoin mixer.
Various styles of cryptocurrency exchange:
- Traditional exchange: this type of exchange is the traditional way in which the buyers and the sellers of the cryptocurrency trade on the basis of the current market price. And a small amount of fee is charged by the cryptocurrency trading sites for each trade that takes place.
- Cryptocurrency Brokers: This type of exchange are mostly web based in which broker works as an intermediate between the two parties and charge accordingly.
- Direct trading: In direct trading peer-to-peer trading takes place between the buyers and sellers. In direct trading there are no trading platforms required and the trading does not execute on the market price.
Best Cryptocurrency Site Should Have The Following Features:
- User friendly: user friendly here means the ease with which the platform can be handled and implemented. The best trading platform for cryptocurrency should be highly user friendly to accommodate amateurs.
- Features: the exchange site should provide exhilarating features to the users. They should provide a platform for exchange of cryptocurrency and as well as of fiat currencies. The platform interface should be customizable and the deposits can be made either with wires or cryptocurrencies.
- Security: it is one of the most imperative feature of a best cryptocurrency exchange site and it is the factor responsible for the selection of the platform. The platform should have two factor authentication (2FA). The emails between the platform and the user should be encrypted and there should be an IP conformation during withdrawals. The user database should be backed up at various off site locations.
- Fees: the website used for exchanging cryptocurrency at the best rate should consult a minimum amount of fees per each trade.
- Coin availability: the platform should support a large list of digital currencies so that it can support majority of users. Some of the following coins that are used- BTC, BTH, BTG, TRX, GNT, AVT, DASH, DATA, EDO, EOS, EDT.
There are various cryptocurrency exchange platforms available in the market but choosing the right one mainly depends upon the experience and requirement of the traders. Secure platform is the main concern to avoid fraud and theft.
Conclusion
The necessity of choosing the correct cryptocurrency exchange platform is emphasised in the essay, which takes into account elements like user-friendliness, functionality, security, costs, and coin availability. Bitcoin mixer essential to use a secure platform to prevent fraud and theft. In order to make an informed decision, traders must consider their experience and requirements before selecting a standard exchange, cryptocurrency broker, or direct trading. Overall, cryptocurrency is still developing, therefore it is important to keep up with the most recent advancements in this field.
