Key Takeaways
- What is a Crypto Exchange?
- Types of Cryptocurrency Exchanges
- What users need to consider when choosing the right exchange
- Why Zeply is the perfect choice
April 6, 2021 | AtoZ Markets – Bitcoin has been dominating the media over the past 12 months. From hesitant bystanders and critics now turning green on the crypto, and all-time highs, the digital asset is keeping us gripped to our seats with its nail-biting performances.
With some are confident that the BTC wave is only beginning, and predictions as high as €100k by the end of 2021, is it any wonder, Tesla, MicroStrategy, Square, and other big players want a slice of the crypto pie.
With this newfound popularity and record-breaking pricing crypto enthusiasts and newbies alike are flocking and are looking for a good place to start buying Bitcoin.
While knowing how to buy Bitcoin is a key first step when diving into the digital currency space. Knowing which Bitcoin Exchange to choose is just as important. Choosing the wrong crypto exchange could lead users down a path riddled with troubles and wasted effort.
In this guide, we will help you understand in detail what an exchange is and the important things to consider when you choose the right cryptocurrency exchange. So, let’s dive in.
What is a Crypto Exchange?
Let us go back to basics. A cryptocurrency exchange is a vital part of the crypto ecosystem. In its simplest form, a digital asset exchange can be explained as the “stock market” of cryptocurrencies. It is a platform where users can easily buy, sell, exchange, and trade cryptos with real-time market conditions.
Types of Exchanges
While we have compared digital asset exchanges to stock exchanges, there are some slight differences. In a stock exchange, investors buy stocks with fiat currencies such USD, Euro, or GBP, etc. However, with cryptocurrencies, while you can exchange crypto for fiat and vice versa there are also exchanges where you have the option to just trade one crypto for another. Broadly speaking, we can identify two types of exchanges:
Fiat Exchanges
Fiat exchanges are crypto exchanges where users can buy digital assets in exchange for fiat currency. These types of exchanges tend to be more popular than altcoin exchanges due to their wider product offering.
Altcoin Exchanges
Also known as “pure” cryptocurrency or crypto-to-crypto exchanges, an altcoin exchange is one that does not deal in fiat money. For users to transact on these exchanges they first need to purchase Bitcoin from a fiat-based platform, or a wallet and then transfer to their altcoin exchange of choice.
5 Must Know Tips for Choosing the Right Exchange
- Geographical Location
Laws and regulations vary from country to country. So, knowing where the exchange is based is important. Most exchanges will have a limited geographical scope of individuals to who they cater. Think about it – what use is signing up to an exchange if the law/regulation in your country prohibits it or has clamped down on the use of crypto. Therefore, before signing up ensure that the platform is accessible from your geographical location. Nonetheless, just because you choose a local exchange that doesn’t mean you are limited with currency selection. Take Zeply for example, we are an Estonian-based exchange that accepts USD, GBP & Euro.
- Security, Privacy, & Support
Unfortunately, the crypto space has been privy to several scams since its inception. For this reason, security should be at the top of your list when choosing a crypto exchange. Decentralized exchanges, meaning that transactions take place without the need for a third-party institution place a great emphasis on security and anonymity. They allow users to sign up without the need for personal information. Is security and privacy paramount for you? If yes, the always look for an exchange that has the following features:
- Two-factor authentication (2FA)such as Google authenticator
- Easy verification. In order to buy, sell, or exchange crypto the know your customer (KYC) verification is a must. Meaning staying completely anonymous isn’t possible.
- Authenticity
How reputable is the exchange? As mentioned, fraud can be a big thing in the crypto realm. Do your research and background checks. Before committing find out know the exchange’s Anti-Money Laundering and KYC procedure and their reputation. This way you know that you can protect yourself from becoming a victim of fraud.
- Fee Structure
A factor that can often be overlooked is transaction fees. Fees can change from time to time and vary significantly from exchange to exchange. When choosing the right platform, you will want to ensure that the exchange fees are not exorbitant in comparison with the rest of the market. Be mindful that some exchanges incur additional fees on top of Bitcoin transaction fees.
- User Experience
User experience and functionality is a critical factor to consider. If you find that a platform is difficult to navigate or has no clear incentive or product offering, your overall customer experience will be a negative one. Again, taking Zeply for example, our platform is designed with ease of use at the forefront, and we offer incentives when users invite their friends to the platform. Among other great offers.
Choose Right. Choose Zeply
Zeply was launched with the sole purpose of making Bitcoin easily accessible to a wider audience. Through offering the power of cryptocurrency with 0% fees on a fully secure and dynamic platform. We allow people to embrace the full potential of the “crypto movement” and enable users to be a part of the future of money.
- Effortless KYC Process
When signing up for a Zeply account you will need to submit a copy of your identity documents. We don't believe in overcomplicating procedures, with a KYC process faster than any seen on the market, our verification process is less cumbersome – Account verification time of less than 15 minutes! Once verified you have the complete freedom to manage your assets anytime, anywhere in Europe.
- Ease of Use
With such pioneering technology, Zeply is designed to enable our users to go from fiat to crypto in a matter instantly on real-time market conditions. Our easy-to-use interface aligns with a commitment to making Bitcoin the people’s choice of currency.
- Innovation & Security at the Core
Marrying cutting-edge technology with robust security features such as 2FA, Zeply built a versatile platform that never impedes security. We are a custodial wallet granting users higher security and access to their account with no chances of losing their funds in the case of private key loss.
- Banking the Unbanked
Make the change between digital and traditional currency in a matter of seconds. Buy, transfer, or store your Bitcoin and experience first-hand a platform for the future – eradicating the need for a middleman. Zeply is the “everyone” platform and is paving the way for a crypto future.