Cryptocurrency trading is a way to generate income based on market fluctuations and in-depth knowledge of strategies. They can be different, depending on the frequency of entering and exiting the market and the tools used. For example, a crypto trading live strategy – intraday trading is applied when a trader wants to generate income within 24 hours. Or a scalping method, meaning earning from slight price changes. In this case, a trade can last up to 15 minutes. These strategies require constant market tracking and fast reaction to every asset price fluctuation.
Where do all these processes take place? The answer is a cryptocurrency exchange. Let’s see what it is and how to use it.
Types of Crypto Exchanges
To invest in crypto efficiently, you need to pick a reliable crypto platform. There are two main types of crypto exchanges:
- Centralised (CEX)
- Decentralised (DEX).
From the name, it becomes clear that centralised platforms have a central body controlling transactions and providing security for users’ funds.
CEX offers a wide selection of trading tools and allows users to buy digital assets with real money via bank cards. CEX supports a wide range of crypto pairs. Users who pass KYC verification access all advanced trading tools and unlimited withdrawals. CEX provides several layers of protection for clients’ accounts and two-factor authentication. CEX allow to trade cryptocurrency using leverage (borrowed finds), margin, futures derivatives, etc. That is a full range of tools required for efficient trading.
Decentralised exchanges are also actively used by traders and investors. They do not have any central body to control transactions and secure them. That means DEX does not guarantee the safety of transactions. DEX offers fewer trading features and usually fewer trading pairs. Experienced traders usually have accounts on both CEX and DEX, but on DEX, they conduct transactions with smaller amounts. It is connected with less reliability and safety.
The brightest representatives of CEX are Binance, WhiteBIT, Coinbase, and Huobi. Prices on crypto assets are about the same, but the fee varies. Binance charges commissions depending on the tool you use; WhiteBIT has a fixed fee that does not change. We recommend starting with the WhiteBIT platform because it is more user-friendly. To read more about this service, go to its official website and blog.