What Is A Cryptocurrency Exchange?
Here at Crypto Nut Cracker, we understand that people want to dip their toes into the cryptocurrency market but lack the relevant knowledge or confidence to do so safely.
Fear not! You are going to be able to do so without breaking a sweat!
A cryptocurrency exchange is simply a dedicated platform from where to buy cryptos. These platforms deal only with this type of asset class.
Types Of Crypto Exchanges
There are in the main two types of cryptocurrency exchanges, Fiat to Crypto and Crypto to Crypto. The former means you would use a debit/credit card to fund the exchange account, whereas, in crypto to crypto, you would need to send Bitcoin or one of the high-cap altcoins to fund the account. Another option to fund a crypto to crypto account is to get someone to send some to your exchange account.
Before you can use an exchange, you will be required to undergo some security checks such as (KYC) know your customer.
What Is KYC? (Know Your Customer)
Any reputable cryptocurrency exchange will require that you undergo (KYC), which is 'Know Your Customer'. You simply register with your name and email. You will also need to input a good, strong password and create an account, which literally takes minutes.
Verification
Once done, you will be required to prove who you are in fact who you are claiming to be, which is necessary to protect both you and the crypto exchange. The exchange will want to ensure that an individual is not creating an account using stolen ID credentials in your name. You will therefore be required to upload some ID and proof of residence. These include a Passport or Driving License - front and back and a current utility bill as proof of residence.
Some cryptocurrency exchanges may additionally ask that you upload a 'selfie' with you holding your ID or holding a note with a message they have asked you to write, which also shows the current date. Crypto platforms' requirements will vary slightly, however, they will all want the same level of verification.
Once your documentation has been submitted, it will take approximately 24 hours for you to be verified.
Google Authentication
Upon you receiving verification, you can log into your account. When you first log in, you may well be prompted to complete a process called Google Authentication, which involved downloading the Google Authenticator App on your mobile phone. This is an extra layer of protection for you so follow the directions for setting it up.
Thereafter, each time you log into your account, you will be requested to input a security code generated by the Authenticator, into the box provided on the login page at the cryptocurrency exchange. That is all there is to create an account on a cryptocurrency exchange.
Now that you are all set, you can log in and explore the crypto exchange to familiarise yourself with the platform and learn what the various
tabs are, check out their fee structure, how to fund your account, how to buy and sell, withdrawal limits etc.,
Everything you need to know to get started in this complete A-Z Crypto Investing Guide
Next: Cryptocurrency Exchanges That Are Well Established In The Crypto Space
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