What are Crypto Exchanges

What are Crypto Exchanges

SUMMARY KEYWORDS

crypto, exchanges, coinbase, loan, account, episode, coins, nance, cryptocurrencies, benefit, bank account, transfer, text message, funds, instant, price, fractional, meaning, Eth, purchase

00:00

Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host crypto travels, Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to Crypto Podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto and don’t know where to start? Are you more experienced too but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

00:52

What are crypto exchanges? crypto exchanges are places where you can exchange your fiat currency for many different types of cryptocurrencies. You create an account and submit a few documents verifying your identity. You fund your account by either transferring funds into your account, or using a credit or debit card as well as ACH transfers. 

01:26

I will cover some of the largest exchanges here. as well as list many more on our page. For this episode, head over to newtocrypto.io and look for today’s episode. Links are available there. Okay, let’s dive into some of the largest crypto exchanges. 

01:49

Binance would be one. They have different versions of Binance for example, for United States customers, they have binance.us for people in other countries they have by Binance.com. 

02:03

Also Coinbase is very popular, because it is very easy to use. However, it doesn’t offer as many different coins or tokens on its platform as some of the other ones. Most of the major cryptocurrencies are available on Coinbase. There is another version of Coinbase called Coinbase Pro, the regular version would be a good place to start if you wanted to get started with Coinbase. to 

02:35

Other crypto exchanges are cracking and Gemini. They’re both based in the United States. 

02:42

Two more is Kucoin and Bitmart. These two are global exchanges and offer many different types of cryptocurrencies. Many coins or tokens on these platforms are not found on the first two exchanges mentioned for example. So be sure to do your own research before getting started. 

03:06

Some benefits of exchanges include finance, for example, requiring the password when logging into your account, plus a numeric code, which is sent by text message. And when you transfer crypto out of your Binance account, it’s it’s a multi layer set of security, meaning you put the destination address of where you’re going to send the crypto, then you also have put the code in for both a text message that they send you right away, as well as an email. And both codes in each message, meaning the text message and the email are different. So you input those in. So multiple layers of security are added to your account. 

03:56

Another benefit of exchanges as you get to trade different kryptos in real time very easily. So depending on how active or the amount of volume, you will be doing some exchanges, like Binance and Coinbase have very large amounts of trading volume, which allows you of course to sell or buy different coins or tokens as the price goes up or down. This works great for crypto traders. I’ll have a special episode about crypto trading coming up here in the future. 

04:30

So let me ask you, how do you get out of crypto? How do you sell it? How do you cash out? How do you get your funds back into your local currency and back into your bank account? Well, the answer is you can do it with these exchanges. One of the easiest ways is to use exchanges to do this. For example, on the regular version of Coinbase you simply convert your crypto to your chosen currency. If you’re in the States, you would convert it back to dollars. digitally in your Coinbase account, then you would send it in dollars back to your bank account. The last time I did this, the entire process took me less than two minutes. The funds were in my US Bank Account the next morning. Simple, convenient. 

05:21

And you can do this 24 hours a day, meaning the exchanges once logged in are always open, you have unlimited access to your crypto and account. Another benefit of crypto exchanges is you can send out your coins or tokens to another wallet. So let’s say you want to use the exchange to purchase coins, however, not to store them, you can send your crypto from the exchange to your other wallets and keep your new crypto in other wallets if you choose. Or, if you prefer just to keep your crypto in your account on the exchange, then you are already good to go. Whatever the option you prefer, is available to you. 

06:06

Another benefit of crypto exchanges is fractional purchasing. Let’s say you wanted to spend $10 only for Eth. Eth is currently priced over $2,000 per Eth. However, you can do fractional purchasing and buy a piece of an Eth. 

06:25

Another benefit of crypto exchanges is instant settling, when you purchase crypto on an exchange, your purchase is instantly settled, you don’t have to wait. At least on most exchanges, you don’t have to wait for it to be verified on the blockchain, because the settlement is instant. Also, there’s transparent order books. You can see the order book on Binance, for example, you can see the order book of the other in real time. 

06:58

Another benefit is the fees, you know what they are going in, they’re transparent fees, they’re posted on their site. And you know, you know what the fees are. 

07:10

Another benefit is you can get loans on some crypto exchanges. So, the way that works is is you transfer from inside of your crypto exchange account to another designated place inside the exchange for example, Binance does this and you can get an instant loan, anywhere from a day a week, a month, multiple months, you know what the interest is ahead of time, you can pay it off at any time. So if you wanted to get a loan for just a week against your crypto, and you can choose which coin, whether it’s a stable coin or another coin, that you would like to receive your loan in. And when you gotta pay back the loan, you can pay a portion of the loan, all of the loan, it’s up to you. So you receive a certain loan to value against your crypto. 

08:12

So for example, if you’re going to have $100 worth of crypto that you’re going to get a loan against, and they give 65% loan to value. That means the most you could get is $65 against $100. One thing to keep in mind when you do your research and you explore getting loans on crypto exchanges, is the fluctuation in the price of the asset that you’re getting the loan against. If the price drops too low, there’s a possibility that you could be liquidated or you need to pay back a portion of the loan to reduce the overall leverage or loan to value against it. 

08:53

This isn’t an episode about receiving loans in crypto, I’m just breaking down another benefit with crypto exchanges. 

09:01

So I hope this provided a little background for you and unpacked some information about the benefits of crypto exchanges and how you can use them. A lot of people use them a lot of people use them only for certain certain things like just purchases and after they make their purchases. They transfer their crypto out. Either way, whatever your strategy is. I hope today’s episode unpacked some more info for you. Until the next episode. Have a great day.

09:34

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