Cryptocurrency trading comes with several risks. However, trading via a cryptocurrency exchange helps traders deal with those risks conveniently.
So, let us see why you should trade cryptocurrency on an exchange.
Safe and Secure
Cryptocurrency exchanges are heavily regulated and must comply with a large number of laws and regulations. For example, they have to follow the Know Your Customer (KYC) rules which require them to verify the identity of their clients before they can transact on the exchange.
Exchanges also take security very seriously, because they have millions of dollars in assets at risk. One of the main reasons for that is that exchanges keep their customers’ money safe by storing funds in cold storage wallets—that means that you won’t see your funds “in the wild” until you withdraw them into your wallet or send them directly from an exchange. That reduces hacking risk significantly!
OKX is an ideal exchange platform to look at when it comes to security measures. OKX provides multiple security features to its users. The platform provides six different security features that work together to secure its users’ funds. At the same time, it ensures that users are taking necessary precautions before trading.
Access Your Funds 24/7
One of the biggest benefits of trading on an exchange is that you can access your funds 24/7. That means that if the coin spikes at 3:00 am, and you want to take advantage of that opportunity, you can do so without having to wait until the market opens. In addition to being able to trade any time during the day or night, there are also no holidays when cryptocurrency exchanges are closed.
Instant Access to Crypto Pairs
Not only will you get access to a wide range of cryptocurrency pairs, but you can also trade any fiat pair. That means that if there is an altcoin that isn’t available on your favorite exchange, you can use another exchange to trade it for BTC or ETH and then send those funds over to the exchange where they do list it.
A cryptocurrency exchange is an online platform where cryptocurrencies can be traded. Unlike the stock market, which has a lot of regulations and checks in place to ensure that it remains fair and balanced, the cryptocurrency market (and its exchanges) are still relatively new and unregulated.
However, that doesn’t mean that you should avoid them altogether. Rather than following your gut feeling about whether or not a particular cryptocurrency exchange is trustworthy or reliable, why not approach things from a more rational perspective?
Exchanges Keep Growing
The crypto exchange you use will keep growing. The more people that join the crypto bandwagon, the more traders you’ll be competing with for a limited amount of coins.
That means that if you use an exchange that is going to grow, and if you get in early enough before it starts to become popular (and thus crowded), you could have a competitive advantage over other traders who are trying to buy the same coins as you.
For example, say that there are only 100 Bitcoins available on an exchange when they first launch, and it only has ten users trading them back and forth between each other. You might be able to snag all those coins for yourself and make a tidy profit off them quickly without having any competition from anyone else!
Leverage Trading is Available
Leverage trading is a type of trading that involves borrowing money to increase the size of your potential gains and losses. Leveraged trading is available on many mainstream exchanges, but it is not available on crypto exchanges.
Once you’ve opened an account with one of these brokers, you’ll be able to trade with as much as 20:1 leverage if your account balance is $10k or more (for instance). That means if you buy $10k worth of bitcoin or Ethereum on margin in that way, then there’s another $100k worth waiting for you from the broker—freely accessible so long as your holdings are liquidated before the maturity date!
Easy to Start
It is easy to start trading cryptocurrency via an exchange. You can quickly create an account, deposit money, and start trading in minutes. If you’re new to the world of cryptocurrencies, that is where you should begin your journey.
If you already have some knowledge about cryptocurrencies and their exchanges, then by all means feel free to skip ahead—but don’t forget that it is always important to double-check information before making any important financial decisions.
As you start trading, you will find more reasons as to why trading on a cryptocurrency exchange is the best way to go about it.