Cryptocurrency works on the logic of decentralised finance. There is no regulatory authority that controls the supply or value of crypto coins. The blockchain technology that the coins are stored on, is an open-source mechanism of managing finance which requires private keys for anyone to access coins owned by someone, that is if the coins are in a wallet. The involvement of keys is part of the cryptographic process of securing transactions and tokens used for it.
This a guide to explain about the platforms you can buy crypto on, and the ways you can invest in the cryptoverse.
Which is the Best Cryptocurrency Market?
Cryptocurrency is the torchbearer of the disruptive DeFi world. It has made interborder money transfer pretty efficient and cost-effective. It works on a peer-to-peer mechanism which rules out the need of a mediator for settlement. The parties involved can decide on the exchange rate and perform the transaction through any mode of payment. The exchanges on which the P2P mechanism occurs, charges nominal fees for facilitating buying and selling of crypto. The offers are through broadcasting ads, wherein the transactions fees are charged from the maker of the ad, while zero fees are charged from the taker on the Binance exchange. Many different exchanges are there in the market who all have their own fees structures. Let us know about some of the top exchanges that you can buy crypto from.
- Centralised Crypto Exchange – These exchanges are run by companies who follow regulations of the country in which they operate. They also collect personal information under the norms of KYC and also have the right to freeze accounts or block funds as a part of redressal mechanism. The UI/UX of these platforms is simple for even the non-tech friendly users. Following is a list of some of the top crypto exchanges in this category.
- Binance – It is established in the Cayman-islands and offers the widest variety of crypto, with an assortment of around 500 coins and tokens. It is the best-rated platform for digital finance.
- CoinDesk – It is the largest crypto platform in the US in terms of volume traded. This exchange is established in the US. It is also one of the longest running platforms in this arena, which recently got listed on NASDAQ with a $100bn valuation.
- Kraken – This is also a US-based crypto exchange and offers most functionalities that the ones discussed above do.
- Bittrex – This is one of the lesser popular exchanges in the US. It charges higher fees on some currency pair exchanges and even the UI/UX is not that great. But it is not exactly regulated by the SEC, which might entice some users. Other than that, the API integration for indicators is too smooth on this platform for professional traders.
- Decentralised Crypto Exchange (DEX) – These platforms are not run by any single company, but works on a code that allows P2P transactions. Unlike centralised exchanges, there’s no redressal mechanism on these platforms as there is no screening of users before participating on these platforms. The UI/UX is complicated on such platforms, but people who prefer to keep their privacy may opt for these, equipping themselves with the technical know-how.
- Uniswap – It is a DeFi protocol that allows the exchange of crypto on the Ethereum blockchain with the help of smart contracts.
- 1inch – It is a utility token that facilitates the exchange of various crypto. It is efficient for exchanging large funds through its tokenomics of governance and participation by network users.
- dYdX – It is a non-custodial DEX which too leverages the security and ease of Ethereum’s smart contracts.
What is the Definition of Cryptocurrency?
Cryptocurrency is a set of binary data which is stored and shared in the form of blockchain and is secured through encryption. A crucial purpose that the virtual currency solves is to prevent the circulation of counterfeits, and solve the problem of double spend. There are validators on the network to check the same and keep the system free of malice. The cryptocurrency acts as fiat money as it is not backed by any commodity. It is developed simply to act as a medium of exchange, the value of which is ascertained through the actual demand and supply in the market, unless it is a token pegged against some real-world currency or a legal tender, so to say.
Cryptocurrency is offered by many regulated payment banks and other platforms in the finance sector, owing to its popularity. Ever since the US recalled the Gold Standard, there has been an increasing problem of uncontrolled minting of fiat currency, which has caused unmanageable inflation in many parts of the world. The governments of different countries have been using much discretion in managing the exchange rates of their legal tenders to assert power in the economy and influence the global trade in their favour. Cryptocurrency is challenging the very same volition