This course will help to ensure you have the most secure cryptocurrency setup possible, which is fundamental in ensuring that your cryptocurrency isn't vulnerable to hackers.
Welcome to this lecture in the course with me. Here, I'll be discussing how you should be choosing which exchange to trust with your tokens going forward. So let's jump in. Buying cryptocurrencies for those just getting started in this ecosystem, can feel overwhelming. So many options or depending on where you are in the world, very few options. In this lecture, I'll walk you through the main options you have when it comes to buying cryptocurrencies. Starting with exchanges. This is the most popular way in which people begin to acquire cryptocurrencies. However, not all exchanges work on the same premise. They're all created with differences in mind, whether that's the user experience, fee structure, security measures and much more. We have three different types of exchanges in the cryptocurrency world from where you can buy cryptocurrencies. One, trading exchanges. These are exchanges where the site directly connects buyers and sellers, then takes a fee. Two, direct trading exchanges. These are exchanges where the individuals deal with each other and set their own exchange rate. Three, broker exchanges. These types of exchanges are where the price of the cryptocurrency is set by the broker and anyone can buy. Examples of three different types of exchange sites as mentioned are Bittylicious, Binance and Bitpanda. Now that you're aware of the different types of cryptocurrency exchanges, let me highlight the key areas you must be aware of when you consider using a specific exchange. This checklist is universal. One, trustworthiness. You want to use a trustworthy exchange, one which isn't having technical issues and could affect your cryptocurrency holdings. Hence, research their reputation online using sites such as Reddit. Two, exchange fees. Exchanges are business, hence they charge fees for pretty much every action. Ensure that you're aware of the deposit fees, withdrawal fees, transaction fees and so on. These aren't universal between the exchanges, they differ. So be sure you're aware of them. Three, forms of payment. As we've mentioned, all exchanges are different. Hence some may only allow you to deposit funds via bank transfer, whereas others may allow you to deposit directly using a credit or debit card. This comes back to user experience. You'll need to see which suits your needs before joining and going through their sign up process. Four, verification. In most cases, exchanges require identity verification. Many people don't mind this, but for the security conscious of you it may not be the best option hence you'll want to know what you need to verify beforehand. This stops you getting imposed with specific limits on your account. Five, countries. Exchanges don't work in every single country, so be sure to select an exchange that operates within the country you live in. Of course this is harder for some depending on where they are in the world. But rest assured there is an exchange where you are in the world. Six, rates. Cryptocurrencies are decentralized, so the rates differ exchange by exchange. It's not uncommon to know its price differences of 10% between exchanges, making of course a perfect arbitrage opportunity. But in general look into this deeply, you want to make sure you're getting the best rate you can. There we have it. A universal checklist to use when it comes to assessing which sites to use, when it comes to buying, selling, and generally trading cryptocurrencies. In the next lecture, I'll be giving you a summary of this entire section before moving onto a very exciting section.
Ravinder is an expert instructor in the field of cryptocurrencies and blockchain, having helped thousands of people learn about the subject. He's also the founder of B21 Block, an online cryptocurrency and blockchain school.