What Is A Crypto Exchange And How To Choose Best For You
A free video tutorial from Steve Ballinger, MBA
Millionaire Investor|Stocks|Cryptocurrency|Teaching 300,000+
4.4 instructor rating • 26 courses • 306,863 students
Learn more from the full courseCryptocurrency: Complete Bitcoin, Ethereum, Altcoins! (8 HR)
Bitcoin & Other Cryptocurrency Is Growing Fast. Master Cryptocurrency Use & Successful Investing In Bitcoin & Altcoins!
08:04:20 of on-demand video • Updated January 2018
- Use cryptocurrency like Bitcoin and others for your personal use.
- Choose and setup your cryptocurrency wallet to hold your digital coins.
- Evaluate and choose an exchange that fits your trading needs.
- Invest in cryptocurrency with confidence and apply successful strategies and techniques.
- Build your own cryptocurrecny portfolio that matches your risk tolerance.
- Apply Fundamental and Technical Analysis (Charting) when choosing individual coins to invest in.
English [Auto] OK so now you've probably found some crypto currencies or at least turn to become of interest to getting real depth on the trading of that and what might be good ones as far as how to set up a portfolio in a moment here. But you've got your cryptocurrency should seem interesting or you might want to do research and maybe you are looking at a wallet or pick out a wallet or once you have picked up a wallet which is where you store your cup of currencies. Then it's time to start thinking about currency exchanges and exchanges is really where you. Let's you know exchange or trade in effect buy and sell after you get your initial cryptocurrency buy and sell crypto currencies and think of it it is like a traditional exchange that we're very familiar with things like like the New York Stock Exchange is a good example for large U.S. companies typically are either not all of them some are on the Nasdaq but you know like some of the technology companies like Apple is on Nasdaq which is a competing exchange and you had that with cryptocurrency too. They act like the New York Stock Exchange and Nasdaq Nickey all those are Nikkei all those types of exchanges where you traders are people Mulaney are buying and selling and trading crypto currencies. And just like you could buy and sell and trade stocks on the Stock Exchange you're buying and selling cryptocurrency is on an exchange and that's where that really occurs especially for active traders or folks who are really looking at this from an investment standpoint. You'll want to start looking at exchanges and this whole section is devoted to exchanges. So we're going to learn lots of information here. So basically cryptocurrency exchanges are Web sites in a nutshell you don't have people on a trading floor or you know people with the pieces of paper shouting all trades the ten shares of Apple for five shares of you are for this price. You know you don't have any of that kind of stuff early everything's gone electronic now anyways even with the older traditional stock exchanges the crypto currency is all done online all done through Web sites that buy sell and exchange cryptocurrency use for other digital currencies or crypto currencies and for fiat currencies as well like U.S. dollar rupee euro all those types of things. So I could go on an exchange and I could take my bitcoins now I could trade them for theory. I can take my bitcoins and trade them for euros or whatever and vice versa. That's where the whole idea of an exchange is as we're exchanging or trading things. Now exchanges will typically rate car you to open an account and verify your end of identification. So my take a year maybe a few minutes or maybe a few days for that depends on the exchange how you know how strange they are as far as the identification purposes. And then there are some platforms that don't even require to open an account. It's like shape shift we'll learn about here where it's really just really straightforward and easy. You basically put your money up there. That's the cryptocurrency it's it's varified money it's it's real it's got a you know it's got a code to it and all that encryption and you can start exchanging that right away. So we'll look at some of these different types of exchanges but really understand there are just Web sites and they're there. They're more than just Web sites they can set up but they're really designed to help you exchange and trade. And there's a whole bunch of them that's the other thing in the stock trading world and Ballantrae and other places. There's there's a lot of different types of exchanges but there's not hundreds and hundreds and hundreds and hundreds of them and new ones popping up all the time. There's more of a traditional That's more of a traditional kind of old school type of type of exchange. Now people can start the exchanges really at any moment and they do. And there's certainly some big ones and more established ones and there's some that you know maybe are less established. So when you're looking at an exchange of a couple things to look for is the first thing is to support the cryptocurrency you want. Not all exchanges have all the cryptocurrency is remember there are hundreds and hundreds and hundreds of cryptocurrency new ones every day. So many of these new cribber currencies are not listed on exchanges or are on the most bloggers are some of the exchanges. So when you're looking at exchange first thing I look at is does it support the cryptocurrency I want so if you want to trade ethereal and you go to an exchange that doesn't treat a theory them then you're of luck with that. So you want to pick a different exchange for that. Things like Bitcoin which is very popular. You might find that more exchanges in something like Dasch which is not is just newer and not as widespread at least as of yet. So it's got to support the cryptocurrency. So that's a first step we want to do before we start really doing too much other digging. Make sure it supports your cryptocurrency. Second make sure it supports the fiat currency that you want as well. At least if you want to trade back and forth with your fiat currency when euros dollars whatever. So if I'm let's say in Paris and I want to trade in euros why I want to exchange it all give me money back for my trades in Euros not in U.S. dollars or or other things. So if I care about is trading crypto currencies on the exchange for other cryptic currencies that are also listed on that exchange. Well that's easier than the support of currency might not be a big deal but if you want to be able to maybe sell your bit currency your currency and then get money back out that you want to use you know more readily to go and buy something and a meal down the street or something like that then you want to look at fiat currency. Another thing to look for is market cap or reputation. Well reputation is kind of you know kind of nebulous market caps actually a real number your market cap is based on the pricing of of all the cryptocurrency that they have and the circulating supply that they have within that exchange. So a currency exchange has a larger market cap price times a circling the prop supply has a little bit more. I would say robustus to it and particularly reputational eyes it's been around a long time maybe we'll establish something that might be around in 2012 13 14. Doesn't seem that long ago when the cryptocurrency world that's a one time you know you can look at that mount that market cap now is like Mt Gox and other things were correct ribber currency exchanges can fail and they had the biggest exchange and they failed. People lost their money because the exchange went away and they couldn't get their money back out of the exchange. So be aware of that. But the bigger players now are becoming more established and certainly a small brand new player. So just be aware of. We've been looking at market cap payment methods. How can you pay and how you get paid out. You know there's anything related to how the process of a payment methods of education requirements we talked about which is you know how you know what type of provocation they're looking for. And then lastly fees as well. You know in looking at the different types of fees that might be involved and in really understanding the fees the costs that really degrade your your investment which can really really add up over time. And in that next so it's hot in the next US we're going to talk a little bit more about exchange fees and what's all included in the exchange fees. So we'll take a look at that. And so you can really understand fees in greater detail because I can get real confusing and I want to kind of break that down a little bit more for at least at a high level.