How does cryptocurrency exchange work?

A cryptocurrency trading exchange is a service for operations with digital currencies. It might be a difficult task for a beginner to find a reliable crypto platform, so we have prepared a list of criteria to consider:

  • Trade volume. The resource Coinmarketcap offers a list of exchanges with comprehensive information about them. The bigger the daily trade volume – the higher the exchange ranking on Coinmarketcap. Big trade volume indicates that the exchange is popular among users.
  • The number of trading pairs. Small simple exchanges propose a limited list of crypto assets available. The bigger exchange – the more crypto pairs are available. 
  • Reliable cryptocurrency exchange provides a high level of security for users applying different levels of protection against hacker attacks.
  • Fees. Different exchanges charge different fees. It is better to choose a cryptocurrency trading exchange with fixed fees.
  • The option to buy crypto with fiat currencies. Not all exchanges allow this. Also, consider the option to buy crypto using bank cards. 
  • Customer support. It is crucial for beginner traders to always have the chance to ask questions and receive quick answers. 

How does cryptocurrency exchange work?

Now that we have listed the main things to pay attention to when choosing a cryptocurrency trading exchange, let’s consider the mechanism of how it works and take the WhiteBIT exchange as an example. 

  1. Registration. Enter the exchange website and register.
  2. KYC (know-your-client). Users can conduct simple exchanges without KYC verification. However, users must pass KYC to access the full set of trading tools and earning opportunities. It usually takes 24 hours for WhiteBIT to check a user’s information.
  3. Deposit money to an account. Clients can do it with bank cards. It is necessary to pay attention to the bank’s commissions.
  4. Place an order. That is a claim for buying cryptocurrency.
  5. Pay the fee. Once the fee is charged, a user receives coins to his account.

Regarding reliability, WhiteBIT stores 96% of users’ investments offline on cold wallets, making it inaccessible to hackers. The platform’s clients configure two-factor authentication.

Regarding fees, WhiteBIT charges an average fee of 0,1%, and it does not matter what the transaction amount is. 

The exchange’s trade volume reaches $650 million.
WhiteBIT allows buying crypto with fiat.
Customer support service works 24/7.