Cryptocurrency Trading: What are the Crypto Exchanges and Crypto Wallets?

Anyone taking interest in learning about digital money has seemingly participated in some sort of trading. As this trend gets more and more attention, newbies want to jump into the crypto market and earn their part of profit. Since the trading process usually starts with choosing a cryptocurrency wallet and a cryptocurrecny exchange to trade on, we have created this article is to help beginners know the basics. So, let’s start with a brief description of each term mentioned above.

Cryptocurrency Wallet

A cryptocurrency wallet is designed to store your digital money. Technically speaking, a cryptocurrency wallet refers to a place with encrypted password or code that represents your ownership of the cryptocurrency. A wallet will act just like a bank account where you keep your traditional currency. Many exchanges offer different wallet options with different services. Do your homework and decide on the one you believe is the best to store your crypto coins.

Cryptocurrency Exchange

The platforms used for connecting the world to the cryptocurrency-worlds are known as ‘exchanges’. One good example is GigaFX. They are like a stock or currency exchange where you can trade digital money for other cryptocurrencies, such as Ethereum or Litecoin and fiat currencies, such as, US dollar or Euro. A cryptocurrency exchange, however, is not as same as a regular stock exchange.

Every cryptocurrency exchange requires their users to fill a simple form and wait for the transaction processing after your information has been verified.  While there are several exchanges around, it is critical to consider a few important things before you decide on one to start investing in cryptocurrencies.

  • Legitimacy – You must ensure the validity of the exchange you choose before you start trading any of cryptocurrencies through its portal. This usually involves checking the availability of that particular exchange in your area. Take Coinbase for instance which is not available in certain countries, such as, Indonesia and India though it is one of the world’s largest cryptocurrency exchanges.
  • Reputation – This is a very important factor to consider when choosing an exchange for trading your cryptocurrency. Find out if the exchange has credible and positive reviews and feedbacks of people who have used or are using its portal for cryptocurrency trading. The exchange must be secured and has no risk or history of hackings. While the internet has a plethora of information about everything, Reddit and Twitter are perhaps the best sources to obtain these information.
  • Safety – Good exchanges usually make use of some type of identity verification from their users. This process may sound time consuming however this single step makes an exchange 100 times safer and more secure than those anonymous exchanges without any certain measurements for safety. Therefore, you ought to take this additional step to keep your hard-earned money secure.  
  • Exchange Rate – Different exchanges have different exchange rates to offer. This calls for a proper research, such as getting and comparing rates from 3 to 4 reputable exchanges, so you get the best possible rates for your cryptocurrency trading.

Cryptocurrency has attracted a larger number of investors and traders around the world. GigaFX offers the safest and simplest place to trade cryptocurrencies with all the tools and services needed to make a deal successful.  It has a simple set up to create trading account and easy-to-understand trading options, allowing you to seize every opportunity you come across in your trading career. This GigaFX Review will help you learn more about this platform.