exchange Archives - 2100NEWS

Guest authorSeptember 27, 2019
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7min946

If you are new to the world of cryptocurrency and looking to make your first Bitcoin purchase or get into trading, this guide will give you the ins and outs of how Bitcoin exchanges work. This is designed to provide you with related knowledge and help you make informed trading decisions.

Let’s get to it.

What is a Bitcoin Exchange?

There are a few ways of getting your hands on Bitcoin, none of them is particularly straight-forward. Buying cryptocurrency isn’t like walking into the local convenience store and picking something off the shelf.

Earlier, Bitcoin was easily mineable. With a bit of computing power, you could join mining pools that allowed you to harvest Bitcoin. However, the mining days are dying out. Although Bitcoin is still being mined, it is becoming increasingly difficult (impossible for anyone without sophisticated computer equipment and plenty of electricity) for even the most professional miners.

This means that for those looking to acquire Bitcoin there aren’t many ways available. You can either receive it as a gift or purchase it from someone who currently owns it. This is where the exchanges come into play. They facilitate the buying and selling of Bitcoin between the owner and the new acquirer and create a safe trading platform for this.

How Do Exchanges Make Money?

Exchanges will charge additional payment or fees on the transactions you make within the platform. This is akin to the fee structure of PayPal or other financial transaction processors. Some exchanges charge very high fees for their services because it is still expensive to send and receive money across borders. They lack the infrastructure to make the exchange process cheaper.

Other exchanges offer free or low-fee transactions, which you should be wary of. Some no-fee exchanges are looking to harvest your payment details to carry out scam activities. As mentioned above, it is still costly to transact across currencies and across borders. Even banks charge fees on foreign currency exchange. So, any platform that seems too good to be true should be given intense scrutiny.

Is there a way to enter the exchange “safe zone” though? Most reputable exchanges, like eToro, offer transactions with medium or market-rate fee levels. You will find that these exchanges are well-known, have been in operation for a number of years, and cooperate with the leading financial institutions.

Are Exchanges Safe?

Exchanges vary in their level of safety. Some take pride in their security processes, while others are a bit less risk-aware. Fortunately, the top-rated exchanges are regulated money service businesses that are bound to comply with the laws and regulations of the countries they operate in. Still, before joining any exchange site, check the certificates that they have.

Do I Need a Credit Card?

The answer is yes. But most big exchanges have full payment functionality and allow for bank or e-wallet transfers as well. Depending on which exchange you select you will find that there are different payment methods.

Some exchanges use the basic credit card payment system. Although it is easier to transact in this method, the credit card fees are inherently high. Other exchanges have switched to flexible platforms like PayPal to give users more payment-friendly experience.

What is a Wallet and Do Exchanges Have Them?

Like hard currency, your digital currency needs somewhere to be stored. We always advise using hardware wallets (detachable hard drives) and plugging them in only when you need to transact. Software wallets are also available. They are downloaded and function as a gate for cryptocurrency.

Exchange wallets are also available and come in two forms. Some exchanges provide free software wallets for their users to download. These are as effective as normal paid-for software wallets but they are free. The other version of the wallet is what you would view as your exchange account. Exchanges have to facilitate the buying and selling of the currency and in order to do this, they have collective wallets that hold user funds.

It is advisable to never leave all your cryptocurrency in the exchange account/wallet. Although some exchanges have never been hacked, it doesn’t mean that one day some clever hacker won’t be able to compromise them. It acts as one safety precaution that you, as a user, can take. So, remove funds from the exchange to your own private wallet.

Exchange Features

All exchanges have different features, interfaces, and functionality. No two are the same. This means that when you have selected your exchange you will need to become accustomed to all its features and how the platform works.

If you use an exchange for the first time, there should be either a tutorial mode that carefully explains how things work, or a “dummy” mode, which allows you to familiarize yourself with the exchange using fake funds. Which option works best for you will be down to your personal preference as we all have different ways of learning. It is crucial not to skip this step as it can prove costly to realize that you have lost money because you failed to learn how the platform works.

 

Guest author: Mary Ann Callahan

 

 


Luka KovičFebruary 23, 2018

4min3998

First company to offer zero trading commissions for US listed stocks is planning to launch in Europe as the company seeks for a »Chief Executive« to lead and operate planned UK/EU expansion. Launched in 2013, the RobinHood app lets users invest in publicly traded companies and exchange-traded funds listed on US exchanges without paying a commission. Its mission is to make financial tools accessible to everyone, as well as inspire a new generation of investors.

Vladimir Tenez, co-founder of the app had spoken about the issue in the interview for Techcrunch: »Most stock brokerages out there have been around for 30 years, their interfaces are clumsy, and they’re targeting older professionals and active traders.«

“They’re no place for first time investors and that’s one of the things we focus on. Making it accessible. Having it be mobile friendly.”

In 2015 the company triggered its global expansion following $50 million of founding led by New Enterprise Associates (NEA), announcing Australia as first international market. They have been waiting for its regulatory approval since.

According to Jan Hammer, a partner at Index Ventures, which has invested in company, RobinHood has »not just made trading simpler, mobile and free; by doing so, they’ve opened up stock market,« Hammer told Business Insider.

The RobinHood App

The RobinHood App won an Apple Design Award in 2015, with minimalistic and stylish interface. Users first need to link their bank account and credit their RobinHood account by a one-time transfer to start trading. Once the amount is deposited (usually it takes about three days in the US), the home screen shows the total money (in stocks and cash) – and how much you’ve earned through the past 24 hours.

RobinHood Crypto

Since February, first set of costumers can buy and sell Bitcoin and Ethereum with RobinHood Crypto. All your investments commission-free on one platform. For now, it’s available for US costumers residing in California only, while looking forward to releasing crypto trading functionality in many other states later. In meantime, RobinHood users and investors can monitor and track market data for 16 cryptocurrencies.

https://www.youtube.com/watch?v=233RzfqYExI

One million users registering in first four days, shows the interes tof RobinHood’s services, which gained over four millions users. For now, users from above mentioned states of California, can buy Bitcoin and Ethereum, but they can track 14 other cryptocurrencies; bitcoin cash, litecoin, XRP, ethereum classic, zcash, monero, bitcoin gold and dogecoin.

Company also announced RobinHood feed, a new way to discuss cryptocurrencies, news and market swings in real-time with other investors on app itself. Over the past few weeks, RobinHood Crypto reached four million users and well over $ 100 billion in transaction volume on the brokerage platform, leading to over $1 billion in commissions saved in equity trades. With the release of RobinHood Crypto, they’re continuing their mission of making the financial system work for everyone, not just wealthy.



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