The Cryptocurrency Exchange Guide for Complete Beginners!
June 11, 2019
Today the world is divided by fiat currency and united by the Bitcoin cryptocurrency. Cryptocurrency means a digital asset designed to work as a medium of exchange using strong cryptography to secure financial transactions, control the creation of additional units and verify the transfer of assets.
When we talk about the term Cryptocurrency Exchange, it means an online platform where one can exchange one Cryptocurrency to another or to any other fiduciary currency. Prices of Cryptocurrency have been influenced by factors like speculations, regulations, adoption, coin upgrades, spreading of FUD (Fear, Uncertainty and Doubt) and raising multiple security concerns due to hacking by the media and prominent business personalities.
Following are the top 5 trending cryptocurrencies: -
The most common types of Cryptocurrency exchange are -
1. Traditional Cryptocurrency Exchanges
Traditional cryptocurrency exchanges are the types of exchanges that behave like traditional stock exchanges where buyers and sellers trades are based on the current market price of cryptocurrencies and the exchange acts as the middle man charging a fee for each transaction.
2. Cryptocurrency Broker
Cryptocurrency brokers pose as dealer networks that are devoid of centralized schemes -Cryptocurrency brokers are a kind of website based on an exchange that is similar to the currency exchange at big-scaled network businesses such as Airports and Railways.
Popularly known as over-the-counter (OTC) market, crypto brokers basically link sellers and buyers owning large stakes of crypto for marketplace trading.
3. Direct Trading Platforms
Direct trading platforms are the types of exchange platforms that offer a direct peer-to-peer trading system between buyers and sellers. Essentially used to exchange financial property through a network via intermediaries, it is extremely easy to carry encrypted financial exchanges on direct trading platforms.
4. Cryptocurrency Fund
Cryptocurrency funds are a type of exchange in which an adaption of traditional funding schemes is adopted which makes it easy for new investors to negotiate the tempting new class. In simple words, it means the crypto fund will buy and sell coins instead of us buying and trading them.
It is a decentralized block chain which is a secure in private currency system. It has a special kind of cryptography that ensures its users complete anonymity while doing transactions. It was launched on 18th April 2014.
The key features of Monero cryptocurrency are:
a) Privacy- It gives its users complete anonymity while doing transactions which can be termed as its USP.
b) Fungibility- It is another interesting feature of Monero Exchange which means equal units of all the Cryptocurrency should be valued equally despite their source uses or any other effect.
c) Decentralization- Most of the Cryptocurrency acquires the characteristics of decentralization but within a limited degree. The ASIC minus mint a lot of coins that are produced every day but the supply of these currencies are controlled by few in a disproportionate way. To the contrary, the Monero mining is only possible with either CPU or GPU making it more decentralized.
XMR (Monero Exchange)
The only ticket (Shortening) for Monero is XMR. Some of the important steps to use Monero Exchange are –
1. You should create an Exchange account for transferring your funds to any Monero exchange.
2. The exchange user will get a payment ID by any exchange that supports Monero currency. This payment ID is a unique identifier of each user.
3. Always use the latest version of the software as some of the old clients of Monero do not have payment ID field.
4. We should also understand that there can be different exchange pairings on varied exchange resources.
There are many cryptocurrency exchange platforms that offer to Convert Monero To Bitcoin currency. With fault tolerance, these exchanges have flawless uptime and high availability so as a cryptocurrency beginner can be at easy while initiating any crypto transaction for the first time.