Do you want to make a foray into the world of crypto currencies? If yes, then it’s important for you to find out about crypto exchange. Put in very simple words, a crypto exchange is a platform where you buy and sell crypto currencies. You can also use an exchange to trade a particular crypto for the other.
There, of course, is no dearth of crypto exchanges that you can choose from. The choice of the exchange depends on a combination of factors. Besides security, liquidity and accessibility, you need to consider your personal expectations and find out if the platform is aligning with your goals or not. It’s, of course, important to evaluate your own goals in that case.
Types of Exchanges
Now, there are two types of crypto exchanges that you should acquaint yourself with – i.e. centralized and de-centralized crypto currency exchange. The centralized crypto exchanges act as the third party between a buyer and a seller. They are considered more reliable since they’re operated and controlled by a company. A decentralized crypto currency exchange, on the other hand, facilitates peer-to-peer transactions that require no third-party intervention.
Today, in order to help you understand crypto exchanges better, we’ll discuss a few yardsticks (like accessibility, fees, security etc). So, let’s start exploring:
There are several traders who think that crypto currencies remain a complex phenomenon. Let us tell you that the degree of complexity varies in accordance with your choice of centralized or decentralized platform. Centralized exchange platforms offer a simple way of trading as opposed to peer-to-peer transactions. You can just log into your account, check your account balances and carry out transactions through websites and apps. Decentralized platforms are a bit more complex since you need time to acquaint yourself with the process.
There are well-known companies operating centralized exchanges. These companies are responsible for taking care of the customer holdings. Since these companies usually hold billions worth of bitcoins they are often targeted by hackers. The risk of hacking, of course, lessens if you’re dealing with decentralized exchanges. Here, you are not required transferring your assets to the third party or organization. As such, there is no risk of an organization being hacked as well!
It should be remembered that exchanges today in general (regardless of whether they’re centralized or not) have started embracing multiple layers of security to offer a hassle-free platform to their new and existing clients. So, whenever, you’re about to zero in on the platform, make sure your researching the security of that particular platform thoroughly before signing up.
Peer-to-peer transactions are usually cheaper than centralized exchanges. However, every crypto exchange platform out there is trying to bring the best combination of accessibility, affordability and security to its users! So, you need not really assume that crypto trading through an exchange will cost you an arm and a leg.
Make sure you’re researching the background and reputation of an exchange platform well before zeroing in on the most trusted Australian Crypto Exchange. If you’re currently on your journey of exploring your opportunities in crypto then make sure you’re looking up Swyftx Learn.