Cryptocurrencies Trading Platform are a very young class of assets held by people. Yet they have come to occupy a very prominent position in everyone’s lives today. It is intriguing that a lot of investors and beckons them to invest because of the high returns that they are witnessing on a mass scale. Cryptocurrency investments have come to take a very good share in almost every investor’s portfolio. This makes the crypto exchanges more active and leads from the front.
What Are Crypto Exchange Platforms?
You must have heard of stock exchanges. They help in the trade of stocks. Similarly, crypto exchanges help with the trade of crypto assets. And since this is a very new class of assets its exchanges are also a very new dot on the horizon. But gradually they are gaining in prominence. There are two types of crypto exchanges namely the centralized and decentralized crypto exchanges. Today we will discuss centralized crypto exchanges.
Centralized Crypto Exchanges
A centralized crypto exchange is one where it acts as an intermediary between two parties namely the buyer and the seller. Almost all crypto exchanges that you may have heard of by now are centralized. This category of exchange is more prominent because of the reliability that they offer to the users who seek that in a world that is marked by volatility and instability. This is what best describes the crypto world – highly volatile.
Examples of a few centralized crypto exchanges across the world are Coinbase, GDAX, Kraken, and Gemini.
The Advantages of Using Centralized Crypto Exchanges
Centralized crypto exchanges have certain advantages that make them a popular choice among people. They are extremely friendly to the users. That is it is easy and convenient for the users to carry out their trade by just using platforms that use apps and websites. Making transactions through sites or platforms like The News Spy has made crypto trade much easier. They can easily carry out their trade at any time from any place.
Reliability and dependency is other important factor that has drawn so many people toward centralized crypto exchanges. It is of vital concern in a world that is full of insecurities due to the volatility of assets. They provide additional security to investors who come to rely on them when they trade in crypto assets.
What To Expect From Centralized Exchanges: A Comprehensive Guide
If you are registered with a centralized crypto exchange you get the benefit of many services offered by them. With them, you get the advantage of market orders, limit orders, margin trading, and activation of digital wallets where you can trust them with your private keys. This ensures that you do not lose them which once lost means the loss of your total digital assets. So you can remain tension-free with their services.
And with the different types of orders like limit orders, you will not lose much of your money because they will instantly call your trading off once the cap limit has been reached. You can also set your choice of the price at which you would like to sell and they will act accordingly.
Important Factors To Consider Before Selecting A Centralized Crypto Exchange
Now and then you will hear of a new centralized crypto exchange here and there but not all become successful. Due to this, they pack up leaving a large number of people who chose them stranded. So that you do not face a similar fate it is in your best interest that you consider the following factors before you select your exchange.
Check out the trading volume of the exchange that you have zeroed in on. The higher their volume of trading the more the chances of low volatility they pose. They also get fewer chances to make any sort of manipulation. Even when you are transacting your assets the prices can vary. It varies from minute to minute. So the higher their trade volume the faster you can expect your transactions to take place and you lose less money should there be a price change.
Security is the most important factor to consider in selecting a crypto exchange because that involves a lot of your money. They should not have a history of hacking as you will understand that they will be prone to hacking repeatedly.
So while trading is careful of how you select your centralized crypto exchanges. If you even let down your guard for a minute you will lose millions probably because they are highly priced assets. So be very cautious.