Most investors by now are aware of the cryptocurrency craze. Bitcoin’s price is soaring, and investors all over the world are caught in the mire of “do I invest? Or is this a bubble waiting to burst?”
Nobody has the definitive answer to those questions, and there are plenty of risks involved with investing in cryptocurrency. But many investors are just looking for some basic answers first, like where and how to invest in bitcoin and other cryptocurrencies. This article will focus on the cryptocurrency exchanges, where investors can engage in the buying and selling of bitcoin and other cryptocurrencies. Think of it like the New York Stock Exchange, but instead of traditional stocks being traded its bitcoin and ethereum and ripple and litecoin being bought and sold.
Here are four of the more widely used and known cryptocurrency exchanges. To note, we (Tickeron, Inc.) do not recommend one exchange over another and investors should be advised that trading in cryptocurrencies involves the potential risk of loss.
1) Coinbase — this is perhaps the most popular and widely known cryptocurrency exchange in the world. You can use Coinbase’s platform to buy and sell bitcoin, ethereum, and others and as a means for operating as your online wallet. The platform is user-friendly with an easy-to-use app, has solid customer support, and is regarded as one of the more trusted exchanges due to robust security and some insurance protection. Of course, no exchange is completely free from hackers and rogue actors, but Coinbase is known to have solid security in place.
2) Bittrex — this is a much more sophisticated and diverse exchange than Coinbase, as here traders can buy and sell hundreds of different kinds of cryptocurrencies, such as bitcoin, litecoin, ripple, and others. The platform is user friendly and has a good security track record, but it lacks a mobile app and has been slow to add new tokens that hit the market via ICOs.
3) Bitfinex — this is boasted as the world’s largest exchange by volume, and it has good relative liquidity and a solid trading engine. It even allows traders to use margin and other features not found on other exchanges. The coin selection is smaller than that of Bittrex, but the features of Bitfinex arguably outstrip what is available to traders on Bittrex. One point of contention, however, is that Bitfinex has been hacked three times before.
4) Bitstamp — this exchange is located in Europe, and is the large bitcoin exchange there. Bitstamp offers trading pairs of bitcoin, bitcoin cash, and ethereum. Bitstamp has a solid reputation in the cryptocurrency community, even though the platform has been hacked in the past. One reason it is highly regarded is because it’s been around the longest, and has developed a solid reputation over that time. It is known as one of the more conservative cryptocurrency exchanges, with its prices for coins often lagging behind others.
There are dozens of exchanges to choose from, and again we just list these as examples of some of the most widely-known ones. If you’re looking for an exchange on which to buy and sell cryptocurrencies, it makes sense to do your research to find out the security features, customer service, transaction costs, track record, whether it’s been hacked, and other features that are of importance to you.