What Is Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. It is decentralized, meaning it operates on a network of computers rather than a single server, and allows for secure, peer-to-peer transactions without the need for intermediaries such as banks.
Cryptocurrencies use blockchain technology, which is a secure, public ledger of transactions that is updated and verified by a network of computers. Each block in the chain contains a record of multiple transactions, and once a block is added to the chain it cannot be altered. This makes cryptocurrencies secure and resistant to fraud and corruption.
What is a Crypto Exchange?
A cryptocurrency exchange is a platform that enables the trading of cryptocurrencies, such as Bitcoin, Ethereum, and others. It allows users to buy, sell, and exchange digital assets. Cryptocurrency exchanges can be centralized or decentralized, with centralized exchanges being the more traditional option where the platform holds custody of users’ assets and operates as an intermediary in trades.
Decentralized exchanges, on the other hand, allow users to trade directly from their own wallets and hold control over their private keys. Different exchanges offer varying features, security measures, fees, and user experience, so it is recommended to thoroughly research and compare options before choosing one.
Best Cryptocurrency Exchange In Sri Lanka
Crypto.com
Crypto.com was initially established in Hong Kong in June 2016, and Crypto.com Exchange was launched 3 years later. Now based in Singapore, the platform has more than 50 million customers in over 90 countries, including Europe, the USA, Canada, Russia, Australia, Latin America and some Asian countries.
The company offers its customers the following products: a mobile app, Crypto.com Visa card, a mobile wallet, Crypto.com Earn, Crypto.com Pay, Crypto.com NFT, Crypto.com Credit. The centralized exchange (CEX) offers spot trading, margin trading and derivatives trading. Crypto.com also offers DeFi products like a DeFi wallet and an ecosystem on the Crypto.org chain powered by its native token, Cronos (CRO).
Pros:
- Wide range of cryptocurrency offerings
- User-friendly mobile app and platform
- Attractive rewards and cashback programs
- Competitive exchange fees and low spreads
- High level of security and regulatory compliance
Cons:
- Limited customer support options
- Withdrawal fees can be higher than other exchanges
- Some users have reported technical issues or delays with the platform
- Limited fiat currency options for funding and withdrawals in some regions
- Some products and services are only available to users in certain countries or regions.
Gate.io
Gate.io is a centralized cryptocurrency exchange where users can find a large number of crypto coins and tokens to trade. The platform supports over 1400 cryptocurrencies with over 2500 trading pairs. The project occupies one of the leading positions in terms of trading volume (more than 12 billion dollars in trading volume daily) and supports spot and margin trading. It also expanded services to other markets, including options, futures, and derivatives for investors.
Launched in 2013, the platform claims to be “steady and reliable,” offering a user-friendly platform with 24/7 customer support and a robust mobile app. However, the exchange is not highly regulated, and does not offer the option to withdraw fiat. In order to withdraw funds from accounts or deposit cryptocurrencies, users go through a mandatory KYC or “Know Your Customer” process.
Gate.io is a cryptocurrency exchange that has its own set of advantages and disadvantages. Here are some of the pros and cons of using Gate.io:
Pros:
- Wide range of cryptocurrencies available for trading
- Low trading fees, especially for users who hold GT (Gate.io Token)
- User-friendly interface and mobile app
- High level of security, including 2FA and cold storage for user funds
- Good customer support
Cons:
- Limited payment options for fiat deposits and withdrawals
- Verification process can be slow and tedious
- Lack of advanced trading features, such as margin trading or futures trading
- Limited trading pairs for some altcoins
- Limited geographic availability, with some countries not allowed to use the exchange
Huobi Global
Huobi Global is an international digital asset exchange with a presence in over 100 countries. Founded in China in 2013, the platform works with global clients and provides trading and investment services to users around the world, handling over $4 billion in daily trading volume.
The centralized exchange (CEX) supports initial coin offering (ICO) tokens and offers an extensive list of cryptocurrencies, with over 500 assets and 300 trading pairs listed on the platform. An insurance policy is available for users to protect their assets, and there is also 24/7 access to several channels for contacting the support service.
The ecosystem includes spot trading, margin trading, futures trading, derivatives trading, staking, crypto loans and more. Active traders and investors have the opportunity to enter OTC trading platforms and gain access to custom trading instruments.
Pros:
- Large selection of cryptocurrencies and trading pairs
- Competitive trading fees and low spreads
- Advanced trading tools and charts for experienced traders
- High level of security and regulatory compliance
- User-friendly mobile app and platform
Cons:
- Limited fiat currency options for funding and withdrawals in some regions
- Withdrawal fees can be higher than other exchanges
- Limited customer support options
- Some users have reported technical issues or delays with the platform
- Some products and services are only available to users in certain countries or regions.
Liquid.com
Founded in 2014, Liquid.com (“Liquid”) describes itself as a global cryptocurrency platform that provides trading, exchange, and blockchain-based financial services. With offices in Japan, Singapore, Vietnam, and the USA, Liquid aims to combine a network of local partners with extensive team experience in banking and financial products to deliver best-in-class financial services for its customers.
According to the team, Liquid is the world’s largest crypto-fiat platform by transaction volume that is regulated in Japan. Powered by the World Book, which provides customers enhanced price matching and deeper liquidity for various fiat and cryptocurrency pairs, Liquid offers trading services for major cryptocurrencies against fiat currency pairs (e.g. JPY, USD, SGD, AUD, EUR).
Part of its roadmap entails the development of a distributed ledger, which will allow other fintech companies to build DLT-based products and services.
Pros:
- Wide range of cryptocurrencies and trading pairs
- Competitive trading fees and low spreads
- Advanced trading tools and charts for experienced traders
- High level of security and regulatory compliance
- User-friendly mobile app and platform
- Supports fiat currency funding and withdrawals
Cons:
- Limited customer support options
- Withdrawal fees can be higher than other exchanges
- Some users have reported technical issues or delays with the platform
- Limited availability in certain countries or regions
- Limited range of additional services or features beyond trading.
Okcoin
Founded in 2013, Okcoin is a US-headquartered cryptocurrency exchange serving 190+ countries and territories. The platform enables retail and institutional investors to purchase digital assets using local currencies, with a mission to make crypto easy for everyone, including first-time buyers.
Okcoin was the first centralized exchange to offer direct entry into decentralized finance (DeFi) with Earn, a tool for earning APY through decentralized lending, liquidity pools, staking, and more. In addition, Okcoin offers institutional trading tools and APIs to asset managers, venture capital and hedge funds, retail brokers, payment processors, and more.
Pros:
- Wide range of cryptocurrencies and trading pairs
- Competitive trading fees and low spreads
- Advanced trading tools and charts for experienced traders
- High level of security and regulatory compliance
- User-friendly mobile app and platform
- Supports fiat currency funding and withdrawals
- 24/7 customer support
Cons:
- Limited availability in certain countries or regions
- Limited range of additional services or features beyond trading
- Withdrawal fees can be higher than some other exchanges
- Some users have reported technical issues or delays with the platform
- Some products and services are only available to users in certain countries or regions.
Paybis
They are a team of passionate blockchain enthusiasts who have come together to help you participate in this exciting new world. More specifically, they developed a platform to help you buy and sell your favorite cryptocurrencies using a variety of (often unusual) payment methods.
The founders started Paybis after realizing the boundless potential of crypto. The goal was not to be the biggest or most popular exchange, but rather to become the most trusted and responsive platform on the market.
They are well on the way to achieving those goals. With a near-perfect score on Trustpilot and a dedicated support team, almost all of the customers come back to use the service again.
Pros:
- Wide range of payment methods accepted, including credit/debit cards, bank transfers, and e-wallets
- Wide range of cryptocurrencies available for trading
- Quick and easy verification process
- User-friendly interface and mobile app
- Good customer support
- Offers various buying options such as express buy, market order and limit order.
Cons:
- High fees for credit/debit card purchases
- Limited trading pairs for some altcoins
- Limited geographic availability, with some countries not allowed to use the exchange
- Lack of advanced trading features, such as margin trading or futures trading
- Limited liquidity for some less popular trading pairs
- Some users have reported slow transaction processing times.
Security Tips When You Using Exchange
Here are some security tips for using a cryptocurrency exchange:
- Use a strong and unique password: Use a strong password that is at least 12 characters long and contains a mix of upper- and lower-case letters, numbers, and symbols.
- Enable two-factor authentication (2FA): Enable two-factor authentication to add an extra layer of security to your account.
- Store your private keys securely: Keep your private keys secure by storing them in a secure hardware wallet or encrypted file on your computer.
- Use a reputable exchange: Use a reputable and established cryptocurrency exchange that has a proven track record of security and reliability.
- Keep software up to date: Keep all of your software up to date, including your operating system, web browser, and any other software that you use to access your exchange account.
- Be cautious with email requests: Be cautious of any emails or messages that request your password, private keys, or other sensitive information.
- Monitor your account regularly: Regularly monitor your exchange account to ensure that no unauthorized transactions have taken place.
- Use a VPN: Use a virtual private network (VPN) when accessing your exchange account to protect your internet connection and to keep your activity private.
- Withdraw funds regularly: Regularly withdraw your funds from the exchange and store them in a secure wallet to minimize the risk of loss due to a potential hack or security breach at the exchange.
