What is a Cryptocurrency Exchange Site
A cryptocurrency exchange site is a place where you can open up a cryptocurrency web wallet and hold your coins with access from wherever you want to access from. They are among the most popular wallets due to this fact, but also because of the main reason that they were created – To buy and sell cryptocurrencies.
Cryptocurrency exchange sites makes it possible for users to buy and sell cryptocurrencies fast, simple and secure through their site, only charging a small fee of 0,20%-0,30% of the total amount you will be buying or selling. The exchange site will handle all transactions in their secure market place and make sure that you will receive either the coins you bought or the cash you sold your coins for, making it possible for you to withdraw the funds to your bank account.
You can see the value of the coins you want to trade update in real time, so you will always know exactly how much a coin is worth against the US Dollar. This also shows you if you have made money simply by owning the coins or if the coins has gone down in value while you have them, which can be used to trade the virtual currencies profitably.
With the simplicity of the operations they offer, many new users can easily acquire coins and participate in the exciting new universe of virtual currencies without having any sort of hassle. They also offer you the possibility to hold all your coins within their site, so you will have easy access to them in the future if you need to use them for different things.
The cryptocurrency exchange sites also offers support for their users, should a problem or question occur while using their site, making it as user-friendly as possible. That being said, it is very simple to use the exchange sites in general and problems rarely occur of any sort.
Why Should I Use a Cryptocurrency Exchange?
The main reasons for using a cryptocurrency exchange site is quite obvious for experienced traders, but as a newcomer to the whole universe it might not be as clear. Below is some of the most important pointers towards why a cryptocurrency exchange site is the ideal place to begin your virtual currency adventure:
The Security: The sites have a high level of security, just like you know it from other online wallets or from your online banking. They use the same certificates and encryption as other money handling services online and provides you with full security when you are doing any sort of transactions on their site.
Avoiding Scams: When you buy and sell in an exchange site you will avoid being scammed by users who simply wants to steal your coins or money. All coins that the exchange will be selling is held within their site, ensuring that you will always receive the coins if you do a trade. Likewise goes for selling coins, as the money that the other user has to pay to you for your coins will also be held within the exchange site, ensuring that the money will always be transferred to your account so you avoid chargebacks or that the other person simply does not send the money to you.
Different Payment Methods: The exchange site offers many different ways of uploading funds to your account in order for you to purchase coins. The payment methods varies from site to site, but most offer in general different credit cards, bank transfer and online wallet payment options.
Real Money Withdrawals: If you have uploaded funds that you will not be using to buy coins or have made money from selling your coins, then you will need a way to get the money to your bank. The exchange site offers you different withdrawal options in order for you to get the cash to your bank account or online wallet, fast and secure.
Fast Transactions: Exchange sites offers traders fast transactions, should it be to buy or sell coins or transferring to other people. When you buy or sell coins you will receive the coins or money in your account immediately after the order has been processed, while transfers to other people takes 10-50 minutes depending on the network.
Low Fees: Exchange sites charges a small fee for their service, in order to pay the cost they have for staff and servers, as well as to make a profit as they are a company. The fees are in general between 0.20% to 0.30%, meaning that it doesn’t cost a lot of money to use their service overall.
Real Time Statistics: You will also find real time statistics of the value of the different coins the exchange site sells. This means that you can always see exactly what your coins are worth in Dollars, so you can see if you are making or losing money by holding the coins.
Recommended Exchange Sites
There are several large and trusted cryptocurrency exchanges, but also a lot of small sites who may or may not be trusted. We will of course recommend that you stick with the large reputable sites, but in the end it is your own choice where you decide to trade your coins. We have put together a small list of the largest and most solid cryptocurrency exchange sites below, who either have a wide variety of coins or simply just handle Bitcoins and/or LiteCoins:
All of these sites are relatively new, as cryptocurrency trading is a relatively new thing to the online industry, but they have all proven to be legitimate in terms of paying out and holding all your funds and coins safely. They all use the necessary encryption for transactions and passwords as well as using SSL certificates for your real money transactions, so nobody can collect your credit card or bank details should they try to hack the sites.
There are also other ways of buying and selling cryptocurrencies, where you will be handling all the things yourself. You can find our articles about buying and selling cryptocurrencies by clicking on the links.