You want to start investing at the crypto exchange
? You're in the right place! Here, you'll find the exchanges' descriptions, rankings and the users opinions. Everything in one place - our Tokeneo News website.
What is the cryptocurrency market?
The vast majority of cryptocurrencies are traded through crypto markets. These are virtual places of exchange. The crypto market contains the most important information regarding tokens - price, volume, trends.
Cryptocurrency markets are created not only for experienced investors but also for beginners who want to start their adventure with cryptocurrencies.
How do the crypto markets work?
Cryptocurrency markets determine exchange rates - for both coins and tokens. The cryptocurrency rate usually depends on the actions of sellers and buyers. There are also other factors that can affect price.
Cryptocurrency markets allow you to buy digital currencies and sell them. In principle, they operate on a similar basis to ordinary stock exchanges. The difference is that on the stock exchange, investors buy and sell assets - shares or derivatives - in order to profit from their exchange rate fluctuations. On cryptocurrency markets, however, traders use cryptocurrency pairs to take advantage of highly volatile exchange rates.
Crypto market - how to start?
You want to start trading cryptocurrencies, but you do not know how to start? We'll help you! Below we have described everything you need. See our guide on cryptocurrency markets.
1. Select the market you want to trade on
Like with traditional money, the so-called fiat currency, to start investing in cryptocurrencies, you need a place where these coins are traded. To start, you need to register and deposit funds into your account and then start buying and selling crypto.
In the further part of our guide, you will see the ranking of the most popular and the best cryptocurrency markets.
Crypto markets may have different terms of service and their transaction platforms may vary significantly, so it is best to think about your choice carefully. This will help you choose the place that suits you best.
According to CryptocoinCharts statistics, there are currently almost 200 markets with a total daily trade turnover of $3.24 billion, although not all of these markets are really reliable. Situations in which investors lose money due to a hacker attack occur regularly. There are also cases in which stock exchanges suddenly end their operations with little explanation, which leads to the total loss of funds by investors. That is why it is important to choose a trusted market. In the beginning, it is good to choose the largest and most well-known options.
Important note: not all stock exchanges accept fiat currency so you may have to buy a cryptocurrency first, and then pay coins to the market to start investing (but there are also hybrids, such as Coinbase, where you can do everything in one place).
2. Select the cryptocurrency wallet
Because there are many crypto markets, investors must somehow transfer the funds between them, as well as have space to store their assets. Cryptocurrency wallets are tools that allow you to store and send coins back and forth.
Currently, there are several types of cryptographic wallets. To get started, you need a mobile or a landline wallet, connected to the Internet.
Almost all cryptocurrencies have their official wallets, such as Bitcoin Core Wallet, Ethereum Wallet or MyEtherWallet, Litecoin-QT and Dash
Core. You can find the links to the official wallets on most of the websites of these cryptocurrencies.
When you choose the wallet you want to use, you are ready to enter the market.
3. Find a reliable source of information
Cryptocurrencies are very volatile assets and their prices can rise and fall suddenly within a few short hours. Such movements can be caused by many factors, so the investor must constantly monitor the market information.
Before buying crypto, it is a good idea to study assets. One of the best tools is CoinMarketCap, a website where you can find information on every coin or token available. This data includes capitalization, supply, trading volume, etc. The site can be used to compare cryptocurrencies. CryptoCompare is another useful website to find this kind of information.
The best way to track news related to cryptocurrencies is to track the most important publications and blogs in the industry, for example on our news portal, Tokeneo News. Even more useful information can be found in social media.
4. Use technology to increase performance and reduce risk
Right now, you have the knowledge and instruments to trade on the cryptocurrency market. However, some elements are still missing in comparison with the investment process of fiat currencies.
First of all, traders of traditional currencies may use crypto markets' indexes for benchmarking (a practice used in management, which consists of comparing processes and practices) while building their wallet. They allow investors to easily trade entire sectors and manage complex wallet as part of a simple investment, reducing the risk and volatility of the wallet.
After building your wallet, you can track your coins using specialized applications, such as Blockfolio or Delta, which provide valuable information. Using such tools also increases productivity.
The best cryptocurrency markets - ranking
We have prepared a ranking of the best and most popular crypto markets. Unfortunately, there are a lot of them, so we had to limit their number. Binance ranks as the world's largest crypto market in terms of trade volumes. It was founded by Changpeng Zhao in 2017. Poloniex is one of the oldest and most popular American markets. Coinbase was founded in 2012, by Brian Amstrong and Fred Ehrsam. It is a platform for buying, selling and storing digital assets. BitMEX is placed with the cryptocurrency markets with the largest volume. It offers direct trading of Bitcoin only.
Polish cryptocurrency markets
Poland has also entered the crypto industry, like most of the world. Here are some examples of Polish crypto markets, starting with the most known and most frequently chosen ones. See the ranking of the best cryptocurrency markets.
Market without verification
With the development of crypto technology, anonymity has become an increasingly important issue. The markets started to offer so-called Anonymous Cryptocurrency Markets, that do not require the provision of personal data when making transactions. The anonymous cryptocurrency market is characterized by the fact that it allows you to make transactions without having to send them documents on paper. It is risky to share your ID, passport or driving license with the cryptocurrency market. Admittedly, markets are required to sensibly process personal data through the complicated legal regulations of the jurisdictions in which they are located. Often, large databases of documents are the great assets of companies running crypto markets, which makes them face many temptations. These anonymous crypto markets do not have these problems.
Blockchain is a technology with many applications. Most often, the cryptocurrency user may encounter it on the cryptocurrency market. Digital currencies are decentralized and politically independent organisms. You can manage them anyway, but the problem arises when you want to exchange one currency for another. Of course, no one is forbidden to do it directly with another user via, for example, Local Bitcoins
, where you can replace Bitcoin with traditional currency or vice versa. You can also simply place an ad on the web. However, most users will go to the crypto market, because it is a much faster and easier solution. In a few minutes, you can convert Bitcoin to Ether or other coins. However, it is worth remembering that current crypto markets are also centralized organizations. Therefore, there is a risk that the owners will run away with the acquired funds or it will be hacked. The answer to that problem is a decentralized market that allows exchanging cryptocurrencies through decentralized platforms. Such entities do not have an owner, they are hard to hack into and provide more anonymity.