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Cryptocurrency for Beginners

What are CryptoCurrency EXCHANGES? And how to get started

2 min read
Cryptocurrency exchanges are the middle men between government generated currencies and non-governed cryptocurrencies.While you can also buy cryptocurrency in person, cryptocurrency exchanges are a good way for you to access to less popular cryptocurrencies as well as getting them at the best rates.

What are Cryptocurrency Exchanges?

Cryptocurrency exchanges are websites where you can convert your local currency to cryptocurrencies.

When you choose to use cryptocurrencies, you are leaving your monetary system and cryptocurrency exchanges act as the middle-men.

 

The biggest problem with some cryptocurrency exchanges is that they can look like a maze for the non-tech savvy.

As this is a beginner guide, central exchanges (CEX) are safer to use.

However, we will create a DEFI guide (decentralised exchange) for more experienced buyers in the future.

 

What are Cryptocurrency Exchanges?

Crypto exchanges work the same way as Foreign Exchange Bureaus when you travel.

When you travel for holidays or work, you need to convert your local currency to the currency of the country that you are going to.

For example, if you are in France and need to go to the US, you will need to convert your Euros bills to US dollar bills.

 

The biggest difference is that cryptocurrencies only exist online and cannot be converted to physical cash like paper bills and coins.

So you need to convert your government created money to digital cryptocurrency through exchanges.

However, not all exchanges are easy to use and can be overwhelming for someone just getting started.

 

The 5 most popular Cryptocurrency Exchanges are

 

1. Binance

Binance is one of the biggest players in the cryptocurrency space.

Most popular cryptocurrencies, as well as least popular cryptos can be bought on Binance with a Credit card, debit card and even Paypal.

Binance has a beginner “lite” version and more advanced display which investors can switch to as they grow.

 

2. Coinbase

Coinbase is one of the oldest US based exchanges.

While the platform is extremely beginner friendly..

However, being a US based company,not all features are supported equally worldwide.

 

3. CEX.io

Cex.io is one of my personal favorites due to the VAST payment options.

You can buy cryptocurrencies with “rarer” payment options such as apple pay, google pay on top of typical credit cards.

 

4. Bitpanda

Bitpanda has also been around since 2014 and has a very beginner friendly interface.

However, the biggest problem with Bitpanda is that it supports a limited number of countries.

 

5. Coinmama

Coinmama is an underrated gem for non-techies.

It has one of the most simple interfaces in the list which is great for a first time buyer, especially if you find the learning curve to understanding cryptocurrency platforms already too. overwhelming.

Short-term traders may complain that they have higher fees, if you plan on holding your cryptocurrencies long-term, the volatility can easily cover the fee cost in the long-run.

 

How to get started

 

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  • Step 1: Choose an exchange from the list above which suits your current needs best.
  • Step 2: Create an account and verify via email
  • Step 3: Get verified

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*Most exchanges have verification tiers depending on the value of the cryptocurrency.

Some exchanges do require verification for smaller amounts under $100 (it may change).

For $100-1000 they usually require identification like a national ID, passport or drivers license.

For larger amounts, the sometimes ask for utility bills and bank statements m

 

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  • Step 6: choose the cryptocurrency you would like to buy in the search bar
  • Step 7: Choose the amount and Enter your card info – it should take a few minutes to go through

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Safety precautions

 

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  • Do not keep large amount of cryptocurrencies long-term

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Cryptocurrency exchanges are not banks and you will not be insured if you get hacked.
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  • Avoid clicking on ads at the top of search results if you are using a browser because scammers often create copy sites to copy your passwords
  • Enable 2 factor authentification with google authentification, for an added layer of security. (the more you can handle the better)

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PRO-TIP

Set buy orders to if you would like to buy crypto below market price. (available on Binance, Kraken and CEX.io only)

 

What is the best crypto exchange for you?

Cryptocurrency exchanges are the middle men between government generated currencies and non-governed cryptocurrencies.

While you can also buy cryptocurrency in person, crypto exchanges are a good way for you to access to less popular cryptocurrencies as well as getting them at the best rates.

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