As a trader, it’s always essential for you to leverage tremendous opportunities of exchange market and it’s obvious. In this Digital FinTech phase, traders have new ground to play on- “Cryptocurrency Trading Exchange.” If you are a beginner and want to make money through Coin Exchange, here you’ll come to know how it works, how to trade safely, are there any concerns or not, how to be assured with choice of crypto coin, etc.

How Does a Crypto Exchange Work?

Are you aware of how any bank functions in real life? You know that someone deposited their money in one of the currencies supported by the bank. Then a bank utilizes that money to exchange with other persons who want that currency. When a person who deposited his money in the bank, want it back in the form of another currency, bank delivers someone’s money to him. This is the whole perception of exchange with the centralized authority of bank.

Exchange & trading with cryptocurrencies is the same where a person buys and sells cryptocurrencies in the form of dollars or crypto coins. The Cryptocurrency Exchange Software create trading pairs and aids you to collect the bitcoins or any other Digital Distributed Currency that you want.

Cryptocurrency Exchange Rate changes constantly, so it’s definite that currency trading would face rise and fall. But there is nothing to worry about any security concerns as there is a comprehensive software to save your money before getting stolen. You can easily perform safe trading on cryptocurrency exchanges like you trust your central authorized banks.

Follow the Steps as a Beginner for Cryptocurrency Trading

1. Account Opening
   To access marketplace, open an account with a cryptocurrency exchange and buy crypto coins. There are plenty of exchange platforms to go with your choice. Your chosen platform should accept fiat currency, so that you can purchase crypto coins straight with your fiat money. Make sure your chosen currency has listed on the cryptocurrency trading platform.

2. Crypto Coin Selection
   You can trade in multiple crypto coins but as a beginner start trading with an only single coin. There is a huge variety of cryptocurrencies to trade on exchanges. By analyzing cryptocurrency resource website like Coinbase.com, you can find every coin with its market valuation (Large Cap, Mid Cap and Small Cap). It’s recommended investing in large and mid-cap. Don’t buy any crypto coins because of its low price. Market value is considered by the number of coins multiplied by its current rate.

3. Pricing Analysis
   Not only consider the price of your favorite coin. Check out market value, coin supply availability, usage of technology, targeted market area, etc. If you require successful Cryptocurrency Trading Strategy, maybe you need a guide that aid you in investing to make great money.

4. Cryptocurrency Wallet
   To store your crypto coins, you need a Cryptocurrency Wallet. There are different types of wallets in which you can store cryptocurrencies online as well as offline; Desktop wallet, Web wallet, Mobile Wallet, Paper Wallet or Hardware Wallet. It’s just like your real-life bank account to store digital virtual currencies. Which one to choose depends on your specific needs.

How To Be Assured About Crypto Choice?

1. Analyze market as well as the industry your coin is disrupting. (whether its Virtual Payments, finance, healthcare, Insurance, etc.)
2. Analyze technology behind the coin. Make sure it is user-friendly, completely accessible and the blockchain technology is resolving an issue.
3. Assure there is a strong team behind your chosen cryptocurrency. The team must have enough experience and essential skills to crack different hurdles.

“If cryptocurrency exchanges can figure out an efficient and swift way to operate decentralized exchanges — let’s say, like blockchain — they can operate more securely,”

said Dr. Bora Ozkan, assistant professor of finance at Temple University’s Fox School of Business, an expert in capital markets.

Factors That Affect Cryptocurrency Price?

Here are the things you need to be mindful when you are trading cryptocurrencies.

• When any of the large exchanges announce the listing of a new cryptocurrency in its already displayed currency list, it’ll be simply available to every person. Even a non-technical person can easily buy it if the exchange platform has a user-friendly interface. So, it can be the reason for a great hike in coin price.
• Always stay updated with the government rules and regulations regarding digital money. If any government authority would ban country’s cryptocurrency, it results in the downfall of its prices.
• Like supply and demand, if demand is high and supply would be less, the price will automatically increase and vice versa. The same methodology applies to crypto coins as well that might be the reason for the crypto price hike and downfall.
• Cryptocurrency Wallet is necessary to store your crypto coins with great security. Investors who are holding coins in their wallet for a long time can make coins more valuable.
• Rumors also react to cryptocurrency prices.
• If there will be any software update take places such as faster transaction speed, more user-friendly interface, or any other software changes leads crypto coin price to the new level. Example, Bitcoin has touched new highs after splitting with Bitcoin Cash.
• There are some cryptocurrency platforms such as Ethereum which enables hosting of other apps having their own currency/tokens. If any of these decentralized apps perform its job very well, it affects positively on the real platform currency.

Concerns Associated with Cryptocurrency Exchanges

The functional principals associated with cryptocurrencies occasionally generates difficulties more likely to happen and thus more distressing. Additionally, those are the same principles which are constrained by different risks unique to crypto coins.

• Spoofing of payment information
• Political uncertainty
• Hacking of payment gateway
• Spoofing a user address
• Number of errors in user address
• Missing of any wallet file
• Uncertain Initial Coin Offerings (ICOs)
• Centralized and integrated attributes
• Governing changes
• Phishing problems
• Liquidity Difficulties
• Clearing and settlement
• Unavailability of enough technical abilities

“The biggest concern for any investor on a cryptocurrency exchange is the likelihood of fraud or hacks due to poor security or a lack of investor protections.”

-Patrick Gray, founder and CEO of HashChain Technology

Summing Up

Cryptocurrencies have the highest potentiality in today’s era if anyone wants to invest. There is number of trading platforms arising day by day. ESpay is delivering customized Cryptocurrency exchange platforms that best suit your specified needs of trading exchange. If you have any other queries regarding cryptocurrency exchange, blockchain or cryptocurrency wallet, feel free to call anytime.