With more than 600 cryptocurrency exchanges in existence, it can be difficult to zero down on one.
But if you are like most investors, you would stick to the most popular ones – Binance, Crypto.com, Coinbase, and so on.
In this article, we will discuss what makes crypto exchanges the simplest and safest way to trade digital coins.
What makes crypto exchanges the simplest and safest way to trade digital coins?
Using any of the platforms mentioned above will show you how easy and convenient it has become to trade digital coins.
Anyone with basic smartphone literacy can now systematically invest in crypto using any of these exchanges.
That brings us to the question for today: what makes crypto exchanges the best option for buying and selling digital coins?
Without any further ado, let’s dive right in.
- Made cryptocurrencies mainstream
More than 106 million people in the world own cryptocurrencies.
If we see the growth chart of crypto investors, we would see that the boom of users coincided with the boom of cryptocurrency exchanges. The most important addition to this mix were apps from cryptocurrency exchanges.
Any person sitting anywhere in the world can now buy cryptocurrencies from their smartphones only. If you know how to buy Bitcoin on Moonpay, for example, you can have Bitcoins in your wallet with just two taps.
When we explore the reasons behind the mainstream adoption of crypto, we have to take into account various factors. But none of them are as influential as the growth of crypto exchanges. In a way, crypto exchanges directly influenced and encouraged people to invest in crypto.
In some cases, they went too far with it and had to face restrictions on airing commercials. Ethical or not, aggressive marketing on the part of crypto exchanges is one of the main reasons why cryptocurrencies are mainstream today.
We generally see it as a sign of growth when more and more people are using a product. If we apply the same principle to cryptocurrencies, there’s no doubt that the industry as a whole has grown tremendously. Crypto exchanges have played an instrumental role in this growth.
- Most convenient option for buying and selling digital coins
Until a few years ago, it would have been impossible to buy and sell cryptocurrencies with a regular credit or debit card.
Today you can use anything from internet banking to e-wallets to buy cryptocurrencies. This transformation is directly linked to how cryptocurrency exchanges pushed for easy integration with payment gateways.
While adding support for payment gateways, cryptocurrency exchanges have also boosted payment security. In peer-to-peer crypto transfers, there is a high risk of scams. The same is not true for crypto exchanges.
Since most people want a straightforward way to buy or sell cryptocurrencies, they invariably go for cryptocurrency exchanges. Its simplicity makes it the top choice across the world for everyday crypto investors. It takes away all the jargon and technical elements that used to be an inherent part of cryptocurrency trading.
- Offer instant liquidity
In the days when you would have to transfer cryptocurrencies to someone else to convert them into fiat money, the process could take anywhere from hours to weeks. You needed to be a part of the crypto community to have access to this network.
With the advent of cryptocurrency exchanges, these challenges were no longer an issue. It directly relates to making cryptocurrencies mainstream.
No matter what your investment philosophy is, uncertainty about liquid cash can deter anyone from investing in a particular instrument. This was true for a long time, but crypto exchanges changed the scenario. Now everyone has access to an instantaneous medium to convert digital currency into fiat currency.
As a result of this, more people than ever feel comfortable investing in crypto. Knowing that they can have their cash back at any time gives them the confidence of investing in cryptocurrency.
- Low processing fees
Crypto exchanges typically charge much less than their counterparts for each trade.
For the leading crypto exchanges, keeping the charges low is a customer acquisition policy. Market competition has forced the top tier of crypto exchanges to keep their processing fees low.
Low charges also make it easy for newcomers to get into the crypto market. Similarly, crypto exchanges lowered the barrier to entry to the crypto market. You can now invest even a few dollars to get started with cryptocurrency investing.
These factors combine to make cryptocurrency exchanges the medium of choice for an overwhelming proportion of crypto investors.
- Wide range of available cryptocurrencies
Bitcoin, Solana, Ethereum, Binance Coin – for some of us, that’s where cryptocurrencies end.
But with more than 18000 cryptocurrencies in circulation, there’s a lot to choose from. While no crypto exchange can offer 18000 coins, the leading exchanges offer more than enough to choose from.
For example, there are more than 500 cryptocurrencies in Binance.
Having a wide range of cryptocurrencies offers multiple benefits to investors. It gives investors a chance to diversify their portfolios.
More importantly, people have different preferences when it comes to which coins to invest in. Some prefer Defi protocols, while others prefer metaverse projects. Crypto exchanges give us the option of investing where we want and when we want.
However, it is important to note that not all listed coins are secure. It’s important to research any cryptocurrency before investing in it.
There are several other benefits of cryptocurrency exchanges that are beyond the scope of this blog.
To sum it up, cryptocurrency exchanges make it possible for anyone to invest in cryptocurrencies with ease.
When it comes to the widespread adoption of crypto, the role of cryptocurrency exchanges is crucial.
Source: Plato Data Intelligence: PlatoData.io