It's all about the exchange...
and I've been looking further into the different options out there in an effort to discover the best one. As it stands, I have some thoughts but I'm really hoping to get some feedback from the SteemIt community. I want to be very clear when I say that I am in no way an expert on crytptocurrency. I'm a researcher and I obsess about things. I want to hear from other people who have been in the game longer than me but I will share what info I gather along the way. We're all on our own grind, so respect the hustle and lets spread some knowledge.
After doing some research I started to realize that if you plan to dabble in a lot of different altcoins then you most likely will not be able to get away with using just one exchange. I also came across many helpful tips, such do not store your coins on an exchange. Upon further research I want to say that again...
Do not store your coins on an exchange
Exchanges get hacked. People create new ones, demand deposits, and then steal your coins. Exchanges pop up and disappear, so be smart and store your coins in a wallet. I may do another post later describing different wallet services out there and include information about security, but for now I'll just say that I'm currently using Jaxx as a desktop wallet for near term exchange. I will also be using a hardware wallet but I haven't decided on one yet. Now let's move on to the exchanges I've looked into the most.
Coinbase was recommended to me because...
-It's very popular and well established
-The interface is very easy which is really good for those of us who are new
-You can use a card to buy right into the crypto market quickly or use a verified bank account
The fee for a card transaction appears to be around 3.99% and the average fee for a bank account transaction is around 1.5% or less. This appears to be the about the average on every exchange. If you are on one that is charging more than that, it's time to move on.
For those of you who are familiar with Coinbase or have experience using it, what are your impressions of the exchange? Any horror stories or positive reviews to share? I've seen a few instances of extra verification requirements, such as questionnaires, that have come up DURING a transaction... which obviously makes me nervous.
Next up we have... Changelly!
- Changelly will shop around for the best rates based on what coin you are looking for, which is dope
- It's a lot faster than other exchanges like coinbase and poloniex
- You don't need to deposit coins first and you can also use a card
- The interface is easy and only requires an email instead of a full blown verified account
Something to note, however, is that the overall cost of the transaction may be more than you would be paying elsewhere. I've seen several comments regarding this across the digital landscape. It doesn't appear to be a major difference but the explanation has been changing exchange rates. Most people seem to chalk it up as the cost for doing business with such a speedy service.
I have heard that Shapeshift is very similar to Changelly, in the sense that they both kind of act as third party exchanges that shop for the lowest rate. They also both have low fees listed (0.5%) but appear to have the occasional issue with changing exchange rates. Changelly appears to be bigger in size, however shapeshift is about as anonymous as you can get. They don't require anything at all. No email. No phone number. Nothing at all, so if you want to be super secret squirrel about your dealings then maybe that's the way to go.
Now I would like to hear from you, Steemit. What Cryptoexchanges do you like? Which ones do you hate? Let's get the information flowing and help each other out.
In the meantime, thanks for reading and please upvote/follow/resteem!
The community needs more discussions like this. I know about ShapeShift ... I'll look into Changely now. Worth note is the sibling site of ShapeShift -- coincap.io; not an exchange but a good market cap and rate page (their phone app is not half-bad either).
Thank you for the support and participation. I'm going to check on coincap.io. Im definitely looking for a good market cap and rate page. I also haven't really thought about phone apps. It might be a good idea to discuss mobile platforms.
So far most of my dealings have been with coinbase. It was also recommended to me by a friend. Though shapeshift does interest me. I always want to make my exchanges with the lowest rates, and of course the more anonymity the better. Because a big part of crypto is reclaiming our digital footprint, right? It will be interesting as we all watch the crypto market grow and we see what services stay and what fall away. And just to reiterate, Never Keep Your Coins In A Exchange
Reclaiming our digital footprint! I like that. Thanks for the comment and I look forward to seeing your posts in the near future.
I also feel the need to expand on the anonymity part that I stated, in case anyone else stumbles upon this post and the comments. When I say anonymity I really mean pseudo-anonymous because you don't have to create an account or give up phone numbers or email addresses (with Shapeshift) which is a big difference when compared to exchanges that require verification. But technically when the transaction takes place information about it is permanently stored on the blockchain that could be traced back to you, such as your wallet address. There are projects being worked on that are trying to create a fully anonymous digital wallet but obviously that has a whole different set of concerns which I'm not looking to get into in this post lol