The growing number of cryptocurrency projects in the world, as well as the increasing popularity of decentralized currencies, have prompted developers to create exchanges for these cryptocurrencies.
As more and more projects are launched, there is a need for interested users to buy and sell these cryptocurrencies on safe platforms. These platforms are called exchanges.
What Are Cryptocurrency Exchanges?
These are online platforms that bring sellers and buyers of cryptocurrency assets together, helping them facilitate the selling and buying.
As cryptocurrency becomes more popular and gains wider acceptance, trading platforms, which used to accept just exchanges between cryptocurrency pairs, have now started accepting payments of fiat currency via bank transfers or card transfers.
Cryptocurrency exchanges work in the same way a stock exchange works: people meet there to trade assets.
However, unlike an online stock exchange where there is a need for a broker, cryptocurrency exchanges don’t use a broker to finalize deals.
So, what do they use?
Exchange platforms such as Redot, for example, only charge a fee for every buying and selling carried out via its platform.
But for there to be one special broker who authorizes deals? Never.
Also, most cryptocurrency exchanges have integrated online wallets into their platform, allowing users to easily transfer different cryptocurrency assets from one online wallet to the next.
For a cryptocurrency exchange platform such as Redot to function well, it must have the following:
- capital deposits: This is the money that a user deposits on the platform’s online wallet that enables you to buy different cryptocurrencies listed on the platform.
- Order books: This is a book that holds the orders made – the currencies that people want to buy and those others want to sell, as well as the different buying and selling prices.
- Order matching: Matching buyers and sellers on the platform.
- Asset exchange: Exchanging one cryptocurrency for the other, most times called cryptocurrency pairs. For example, ETH/BTC is a pair. You exchange Ethereum for its bitcoin equivalent.
How Cryptocurrency Exchanges Works
With cryptocurrency exchanges, a user, who’s registered on the platform, demands that (s)he wants to buy a certain cryptocurrency. The platform matches the buyer and seller together and gets a transaction fee after every transaction. If you think you want to buy, sell and trade coins, check and go to websites that can help you get information about cryptocurrency exchange.
Is Binance Good for Holders
Binance is one of the biggest exchange platforms, averaging around $30million worth of trades daily. Founded in 2017, Binance has over 300 cryptocurrencies including the major altcoins such as Ethereum, Litecoin, Ripple, etc. The popularity of Binance usage is also determined by its handy and reliable API, which enables users to utilize Binance functionality via external platforms and services, e.g. Binance trading bots.
For users who are not adept with trading on the platform, Binance offers other means through which they can earn some from their cryptocurrencies on the Binance online wallet.
The different ways cryptocurrency holders on Binance can benefit include:
- Binance Fixed Savings: The Binance fixed savings gives high returns. It locks in your required cryptocurrency asset for a period and then gives you interest on the asset.
Say, for example, you lock your Ethereum in the Fixed savings, you are given a certain percentage of your locked Ethereum after the fixed period. The locking period is between 7 to 90 days.
- Binance Flexible Savings: Flexible savings works just in the same way as the Fixed savings, the only difference is that your cryptocurrency is not locked for some weeks. It is accessible whenever you want. You get daily interest on your saved assets.
- Binance Staking: This gives you up to 25% passive income yearly. You can either stake your cryptocurrencies on the DeFi staking or locked staking.
For the locked staking, you lock your cryptocurrencies on a Proof of Stake Blockchain for several weeks, same as the Fixed savings. The longer you leave your stakes locked, the more interest you get.
The DeFi Staking involves you using your cryptocurrency to stake on high-risk DeFi services. Although this is a relatively new addition, it has high returns.
However, it will be foolish to stake on DeFi if you are not very knowledgeable about how it works.
- BNB Vault: This is designed only for those who have BNB, Binance Cryptocurrency.
Benefits of Redot for Ethereum Investors
As an Ethereum investor, having a safe place where you can invest your Ethereum without no being stolen by hackers is important, not only for your cryptocurrency but also for your mental health.
Nobody wants an exchange platform that is susceptible to hackers. It leaves one with endless sleepless nights.
For better safety, more reliability, and well-documented legality, Redot was developed for Ethereum investors.
Using Redot to buy and sell your Ethereum offers you:
- Reliability: The Redot exchange platform was designed using premium trading technology which can take as many trades in a day, consecutively. You can rest assured that each buy and sells orders are fulfilled fast.
- Safety: With 2FA and U2F, deep cold storage, withdrawal protection, and monthly edits, you can go to bed knowing that every of your Ethereum assets is safe. No hacker can have access to your Ethereum.
- Low Exchange rates: Buying and selling cryptocurrencies on Redot is fast, easy, and you are charged very low fees for every transaction you carry out.
- Full Compliance: If you are worried about the legality of Redot, there is nothing to fear because Redot has exchange and license custody from Estonia, an EU member state.
- Referrals: For every person, you refer to Redot, you get 70% of the referred person’s commission.
Is Kraken Safe To Safe Store Your Crypto
Kraken is one of the oldest cryptocurrency exchanges in the world. Started in 2011 as a better option to Mt.Gox, Kraken implements some of the most secure security protocols for users’ cryptocurrencies on their platform.
Measures such as cold wallets, email confirmation withdrawals, Mandatory 2FA via Google Authenticator, PGP and encrypted emails, and a multi-tiered verification system ensure that every user’s cryptocurrency is safe and secure. If you still think that this is not enough, some review sites suggest using VPN service for crypto exchange platforms. It gives extra security while hiding your real location, identity and encrypting your internet connection. So try that!
As more and more people get in on the new wave of cryptocurrencies, there is a need for safer and more secure exchange platforms. Exchanges such as Redot give every trader and investor a safe space to buy and sell crypto, as well as referral bonuses.