The year 2021 turned out to be extremely positive for cryptocurrencies. Although there was a cryptocurrency downturn in 2022, all indications are that this situation is temporary. Investing wisely in cryptocurrency and knowing how to sell and buy it in time is profitable. What cryptocurrencies are worth paying attention to in 2023 and which crypto exchange should you use?
General rules of cryptomarkets. What you should know about it?
The first online exchange where bitcoins could be traded, New Liberty Standard, appeared in October 2009, almost a year after the launch of the bitcoin blockchain. At about the same time, the first purchase of BTC for dollars also happened. Now, you can freely take Bitcoin loans instant, but in 2009, not many people knew about bitcoin – it was an interesting experiment for bored coders and ideological anarchists. The trading was done on amateur platforms, like New Liberty Standard was, rather, for experimental purposes.
Crypto-exchanges are needed to sell/buy digital assets between traders. There are many decentralized ecommerce platform. Moreover, some they integrate fiat gateways within their functionality. This means that the customer uses their bank account or credit card to purchase cryptocurrency assets. Different types of crypto exchanges take different approaches to running their own business. Some platforms attract customers with a simple and user-friendly interface, others with low trading fees, others train users from scratch, while the fourth ones are focused on professional traders.
On classic exchanges, the customer uses their own fiat money or cryptocurrency to exchange assets. There are P2P cryptocurrency exchanges, where the work is not only with cryptocurrencies. The client can sell and buy assets from other people or companies, but on confidential terms. There is a derivative exchange, where one trades the price difference. In essence, it is like working on forex.
Centralized exchanges are the most famous and traditional exchanges in the cryptocurrency industry. Using them, users can trade both cryptocurrencies and fiat money. Also, one of the features of such exchanges is that they are centrally managed by the companies they belong to. The popularity of cryptocurrency exchanges can be determined by the frequency of mention in the media, the number of users, which is initially determined by the marketing budget.
Top 3 crypto markets of the world
Now that you know a little bit about the types of exchanges, you can choose the one where you start trading. Here are 3 of the most popular and well-established exchanges in the world:
- Binance. It is a market leader and global cryptocurrency exchange that is available almost all over the world. This exchange was founded in 2017 and is considered one of the best for trading cryptocurrency. The platform works with users from all over the world and receives the most positive feedback from the cryptocurrency community. This crypto exchange works with 46 fiat currencies.
- Kraken. Kraken is one of the oldest in crypto market. Verification is required for all members.
- Coinbase. The Coinbase online platform which helps people convert digital currency into local currency and local to digital currency.
In what kind of cryptomarkets should you invest in 2023?
If you choose an exchange you want to use for trading, be sure to check the reviews.
Decide on the coins you want to trade. Most coins are exchanged for bitcoin, less often for Ethereum, Lightcoin, or other alts. The cost of exchange is expressed in dollars, and it may be slightly different on different exchanges.
You can take any coins as a loan or leave them as a deposit on the site CoinRabbit.
Conclusion
There are many exchanges where you can make a successful exchange of cryptocurrency. You can turn to exchanges proven by years of reputation or find another site, making sure it is reliable. In order to maximize your profits from trading, leave as collateral the asset you don’t want to sell and borrow the currency you want.
