How To Open A Cryptocurrency Trading Account? – 5 Best Exchanges To Start Trading
Opening a cryptocurrency trading account is one of the first steps to get into crypto. This is, of course, after reading and watching all the resources that you can. Each platform would require different information and process. So, we have compiled the five best exchange platforms for you to start trading. So how to open a cryptocurrency trading account?
How to start trading cryptocurrency?
To start trading, make sure to have the following:
- Any cryptocurrency wallet - paper, mobile, hardware, or software wallets
- Access to an 'exchange' that lets you buy, sell, or trade crypto
Some reminders about cryptocurrency trading
- The cryptocurrency exchange is not part of stock exchange
- Beginners may opt and prefer to trade cryptocurrency stocks.
- Cryptocurrency trading is a 24-hour market
- The market is incredibly volatile.
Top 5 cryptocurrency exchanges to open an account
With a base of over 2,000,000 customers, CEX.IO offers trading cryptocurrency against several fiat options – USD, GBP, EUR, RUB. CEX.IO is beginner-friendly. Registering on the platform is easy and won't require much time. However, to use CEX.IO fully, users must be verified. The platform also supports withdrawals and deposits via bank transfers or credit cards. You can deposit in any fiat currency as it is then converted to the one available on the platform.
BitMEX provides trading bitcoin and other cryptocurrencies. You can deposit and trade funds here and gain in bitcoin. The company was founded in November 2014. The site's financial professionals have experience of more than 40 years. This site carries out and accepts its transactions only with bitcoins and no other currency. Lastly, future contracts and swaps are the two significant types of trading offered by this site.
Whaleclub performs hundreds and thousands of trades daily. The company accepts and processes its transactions only with digital currency. It offers its customers low spreads with zero transaction fees. There are no fees in depositing bitcoin and account activity, but yes, it charges some during withdrawal. It also implements a bid and ask policy. The withdrawals will be carried out in an hour after a request - and are mostly made manually for security purposes. This site provides order book trading. The trading involved here is a bit specific as the site supports margin trading. It offers a great user interface and is relatively fast.
Binance offers various cryptocurrencies. It supports two types of bitcoin exchange that is, basic and advanced. Based on your preference, these two options can show little and detailed information on trading. You can change the chart's data between “depth” and “candlestick” based on your viewing choice.
This platform offers free deposits and works on a 0.1% trading fee, and offers high liquidity. Beginner traders might find it hard to work with this site, as the interface is a bit complex. The website is great as it doesn't lag, which is useful for day traders.
Bitfinex offers spot trading for all the prominent cryptocurrencies. It provides quick and high liquidity with Bitcoin. It includes margin trading and gives leverage of 3.3x by obtaining funding from the peer to peer margin funding. By supporting funds to traders who are wishing to trade, the margin funding market earns on bitcoin and other cryptocurrencies. Customers can borrow the desired amount of funds at the rate and duration of their choice by entering the order.
Picking the right exchange platform to trade-in
There are a lot of exchange platforms for cryptocurrency, and each is almost different. If you decide to get into cryptocurrency trading, you need to analyze the platforms on the following criteria:
Explore the platform’s suggested cryptocurrencies
Usually, Bitcoin and Ethereum are always available, but there may be problems with less capitalization with other altcoins. Therefore, at this step, it is essential to study which cryptocurrency pairs are available on the site in the inquiry. This will help you learn what assets you can invest in.
Crypto-exchange platforms are not always transparent. For example, many of them have been found to distort the volume of trades largely. Honest company services usually do not hide their data.
Many exchanges are showing off their security systems to their users. The worst thing that can occur is hacking, causing the loss of customer funds. Some exchange systems have started to accept insurance assuring reimbursement in case of such a mishap.
Even though the crypto trade has been steadily getting popular over the past years, there is a problem that the industry can't yet cope with - it is hacking. According to Chainalysis, an entity that helps governments and financial institutions fight money laundering, about $282.6 million was stolen from exchange sites in 2019.
Acceptance for fiat money
Of course, be attentive to the sites that work with your national currency. This will help save on commissions, especially if you pay with a credit card.
Why cryptocurrency trading is getting more popular?
One of the reasons that crypto trading is so profitable is because Bitcoin, the original cryptocurrency, is very volatile. With this, the price fluctuates up and down within a single day. Thus, profitable traders can look for patterns and predict when the coin's price will go up. They can buy before then and sell the coin when the price is about to fall. This technique now leads to huge profits. It is clear that with the correct trading decisions, a person can gain lumps of money. But also, they can make that money disappear quickly. So, only invest what you afford to lose.
Plus, several processes and products let traders be profitable and more agile - especially those who have come in from the traditional trading scene. This comes margin trading, which includes leveraging. Trading in cryptocurrency has been getting popular lately. This happened as traders have realized that there is a ton of money made when trading. And then, it has even started spilling out into traditional institutional trading settings. Click here to know more about cryptocurrency trading!
Don't just stop on reading and watching. Go on and open your cryptocurrency trading account today! As we’ve mentioned above, each site would fit different users – either you are a beginner or advance. We advise that you try each of their interfaces and feel it for yourself. Also, consider their fees, security, transparency, etc.
UPDATED April 5, 2021
By: Paulette Dane
Cryptocurrency has surely got the interest of most of us, especially those who keep their eyes on new and better investments.
UPDATED April 4, 2021
By: Hunter Shultz
With the extensive time you will invest just to trade crypto, it is good to create your trading bot. Not only will it do a better job studying the algorithm and trends.