In this lecture, we will talk about ways to buy cryptocurrencies and the types of exchanges
Cryptocurrency can be bought in several ways. For example, through an intermediary, offline or online exchanger, electronic terminal, P2P platform or crypto exchange.
Let’s analyze all the examples in more detail.
The easiest way to buy bitcoin or another cryptocurrency is to find a specific terminal in your city. Outwardly, it looks like bank terminals . The purchase scheme here is the same — select the desired cryptocurrency, insert paper money into a special slot and get digital money to your virtual wallet. However, such terminals do not exist everywhere. Also fees can be high.
Online exchangers are sites where users can give their money and receive cryptocurrency in return. The transaction takes place using bank cards and is similar to a regular currency exchange. Such services are convenient for a one-time purchase or for occasional cryptocurrency exchanges.
An offline cryptocurrency exchanger resembles the usual money exchangers. These are small premises with one or more employees. You can pay paper or electronic money and receive the necessary cryptocurrency in your wallet in return. Such exchangers also do not exist everywhere and commissions can be high.
P2P platforms are an electronic store of cryptocurrencies, where users themselves place ads for sale. The security of transactions is guaranteed by the platform itself, and the cryptocurrency temporarily “freezes” on a third-party account until both parties confirm the transaction.
The most unreliable way to buy cryptocurrency is to work with an intermediary. This is a real person who, at your request and for your money, makes the purchase of the necessary cryptocurrency to his wallet. Then he transfers it to you, and keeps the interest for himself. The main thing here is to find a trusted person who will not deceive and at the end of the transaction will not refuse to send digital money to your wallet.
One of the most reliable ways to buy cryptocurrency is through cryptocurrency exchanges. Below we will analyze this segment of the digital currency market in detail.
What is a cryptocurrency exchange?
A cryptocurrency exchange is similar to a securities or regular currency exchange. This is a place where a number of people sell digital money at the same price, while others buy it. Here, cryptocurrency can be safely stored, exchanged and withdrawn to personal wallets.
Any well-known centralized cryptocurrency exchange requests the user’s personal data (passport, photo, etc.). Without providing this information, trading in cryptocurrency is not allowed. Therefore, all transactions on such platforms are maximally protected from fraudsters, but users cannot remain anonymous.
To date, there are over 400 exchanges for the exchange of cryptocurrencies on the market. These exchanges can be divided into two types: centralized and decentralized.
CEX (Centralized Exchange) is a centralized cryptocurrency exchange. As the name implies, the management and administration of such an exchange lies on the shoulders of a single organization that acts as an intermediary between the two parties.
CEX Examples: Coinbase, Kraken, Binance, FTX
Pros:
Ability to transact with fiat
Great functionality for trading
High liquidity
Minuses:
No access to private keys
Verification
Security risk (CEXs are more susceptible to hacking threats)
DEX (Decentralized Exchange) is a decentralized cryptocurrency exchange. Such an exchange was created on blockchain technology
DEX examples: Uniswap, Pancakeswap, SushiSwap, etc.
Pros:
Anonymity when exchanging
Access to assets and private keys only for the owner
Access to a large selection of coins to exchange
You won’t be blocked
Minuses:
Liquidity is often lower than on CEX
fiat is not supported
For a standard purchase of cryptocurrency on the exchange, you need to create an order. In it, the user indicates the amount for which he wants to buy or sell cryptocurrency.
Most popular CEX are:
Binance
FTX
Coinbase
Kraken
Gate.io
KuCoin 
Bitfinex 
Huobi
Bitstamp 
Binance is the largest cryptocurrency exchange in the world. It offers trading in 160 different currencies. There is also a built-in P2P platform and an NFT store.
FTX is a centralized crypto exchange created by «traders for traders». It supports over 300 cryptocurrencies for spot trading and offers products such as derivatives, options, prediction markets, leveraged tokens, tokenized stocks, an OTC table, and volatility products.
Coinbase Exchange is a US-based cryptocurrency trading and investment platform where users can easily buy, sell, exchange and store cryptocurrencies. The platform is intuitive and beginner-friendly, supporting basic transactions, a digital wallet, and PayPal withdrawals.
Kraken is a cryptocurrency exchange where users can buy, sell and exchange various assets at relatively low fees. Clients can also be rewarded for staking coins. The exchange has a leading level of volume and liquidity in euros and allows users to trade over 100 crypto assets and 7 fiat currencies.
Gate.io is a worldwide digital asset platform that supports over 1400 cryptocurrencies and over 2500 trading pairs. It offers various trading, lending and betting features such as spot, NFT, margin, copy trading, leverage, derivatives, API trading and more.
KuCoin is a cryptocurrency exchange created with the goal of “facilitating the global free flow of digital value. The platform supports futures trading, built-in P2P exchange, the ability to buy cryptocurrency with a credit or debit card, and instant exchange services.
Bitfinex is one of the oldest digital asset trading platforms. The Bitfinex website offers a variety of services for traders and liquidity providers, including a peer-to-peer loan service and programmable trading tools.
Huobi Global is an international cryptocurrency exchange. The cryptocurrency exchange allows traders to carry out transactions with a variety of assets, including about 300 currency pairs and cross rates.
Bitstamp is a cryptocurrency exchange. Allows you to trade between fiat currency, bitcoin and other cryptocurrencies.
When choosing a crypto exchange, it is important to take into account the key parameters that affect the convenience and security of trading. For advanced users, supported types of trades and currency pairs for which trading is available matter.
In next video, we will show registration on the largest exchange in the world — Binance