If you’re looking to buy cryptocurrencies, then signing up for the crypto exchange will be the best choice to start. When buying some hundred dollars Bitcoin from the local Bitcoin ATM will be convenient, this makes a little sense to use exchange if you want to invest a huge amount or you are interested to buy a wide range of the cryptocurrencies.
The best crypto app canada is the most legal and safest way to get cryptocurrency. However, that is not an only reason using exchange is suitable. Given are some reasons that crypto exchanges are totally worth considering.
- Crypto exchanges allows users to buy & sell cryptocurrencies online and using mobile app, hence making it simple to access crypto markets from across the world.
- Most of the cryptocurrency exchanges provide a wide range of the digital currencies & tokens, offering various options for the investors who want to build the diversified portfolio of the digital assets.
- Top crypto exchanges generally hold funds in the cold storage just to ensure proper safety of the assets.
- Global crypto exchanges generally comply with KYC & Anti-Money Laundering rules and financial regulations. Thus, users can easily be assured that they aren’t dealing with the fraudulent company and malicious market participants.
Low Fees and Short Settlement Times
Though some people might just want to make an investment in the cryptocurrency to take benefit of the price appreciation, some will find huge benefit in ability of using crypto as the way of exchange.
Bitcoin & Ether transactions will range from some cents, to dollars and even more. Some cryptocurrencies, such as Litecoin, XRP, or others, can be sent for very less. Generally payments for most of the cryptos settle in minutes or seconds. On the other hand, wire transfers at the banks will cost much more, and take 3 to 5 business days for investors to settle.
Huge Industry Growth
The cryptocurrency sector has been the fastest-growing marketplace that we have witnessed in some many years, particularly since this industry got the start with debut of the Bitcoin in 2009. Thus, when this industry has seen huge growth over past some years, it is very important to remember markets ebb & flow.
- Evaluate market cap of the currency. Higher the capitalization, higher will be the liquidity of the asset.
- Know the currency you are investing. Go through the whitepaper & analyze if the model makes any sense.
Generally, cryptocurrency market is actually considered illiquid as transactions are dispersed over multiple exchanges that means small trades will have vast impact on the market prices.