Those who invest in traditional stocks and commodities often have one or more brokers who are just a phone call or email away from walking them through the process, and offering advice along the way. In contrast, buying and selling digital currency is often a do-it-yourself situation. The new investor in the cryptocurrency game can feel at a loss when it comes to connecting with other traders and finding up-to-the-minute market information. To put it in everyday language, the prospect of even getting started scares the living daylights out of some would-be investors. Are there no investment resources for traders new to cryptocurrency?
Of course there are! Even though the field of alternative currency is a young one, many helpful entrepreneurs in the field thought ahead, and established companies with just those concerns in mind. They've used traditional stock and commodity exchanges as a model, and have set up exchanges exclusive to those who trade in cryptocurrency. As we discussed in a previous section, alternative currencies serve as both a functional transaction currency and as a commodity. Exchanges have been created to help investors build and maintain their digital currency accounts, no matter which aspect—or combination thereof—is their focus. The overwhelming majority of trades in the world of alternative currencies takes place through exchanges—even if they're only used for the introduction of one trader to another. Additionally, nearly all traders get their market information—currency values, exchange rates, trends, and so forth—from exchanges. Since these exchanges are so important to the smooth operation of the overall industry, we're devoting this entire section to them.
Exchanges are important to digital currency traders, no matter their level of expertise—and they're customized to cater to the needs of the unique currency/commodity dual nature of the industry, too. Do you have years of traditional market experience under your belt? If so, congratulations—but you'll still need cryptocurrency exchanges to help you navigate the one-of-a-kind markets in the field. If you're not exactly all that experienced in stock trading at all, you needn't worry. Cryptocurrency exchanges are set up to be as simple or complex as your needs dictate; they're there to serve those completely new to trading, or those who've been at it for years. In a field that's barely five years old, we're pretty much all “newbies” here.
This section will explore the following subjects as they apply to cryptocurrency exchanges:
- Public and Private Keys. These encryption codes—unique to each trader—allow secure digital currency transactions and purchases.
- Trading Directly through the Exchange. Here's how you can make trades with other investors by using the exchange's platform.
- Trading with Other Investors. Connect directly with other investors and make trades using the exchange as a networking tool.
- Fair and Secure Trades. These are steps you can take to assure security and fairness for all involved.
- The “All Your Eggs in One Basket Theory. Why investing in just one currency—or through just one exchange—may not be the best idea.
- Currency Values and Trends. Exchanges provide charts and graphs to help you track important statistics about the markets in general, and your trades and accounts specifically.
- Getting Advice. Stuck or confused? Here's how to solicit help from your fellow traders.
- Presenting Yourself as an Expert. Once you've been around a while, share what you know!
Digital currency exchanges are set up to help expedite fair and secure trades, and to provide additional information for account maintenance and investment strategy. The information in this section will help you to be aware of—and make the best use of—the tools and statistics these exchanges provide.
Coin Pursuit remains dedicated to the education and assistance of our readers and members, and this informational section on cryptocurrency exchanges is presented to you in that spirit. As always, we welcome your input on any and all elements on our web page; if you have a topic you'd like addressed in more detail, or have one we've overlooked, please let us know. In the meantime, let's take a look at the brass tacks of alternative currency exchanges.
Next Exchanges Topic: Public and Private Keys