Post
Topic
Board Beginners & Help
Re: Sort of a Newbie - Questions I should have asked
by
Jawhead999
on 05/02/2021, 05:15:23 UTC
* I don't know the best way/place or why one exchange is better than the other or why (I guess I could have asked that first). I can read what the exchanges say the reasons are but that's marketing. I'd rather ask actual users.
There are 2 kind of exchanges:
1. Centralized exchanges (CEX) ) (e.g. Binance, Kucoin, Kraken, Huobi)
2. Decentralized exchanges (DEX) (e.g. Bisq, Hodl hodl, localbitcoins)

Centalized exchanges is a third party who has control of your funds so you need to rely your funds to them, while Decentralized exchanges doesn't. So if the CEX got hacked or exist scam, your funds will be gone. DEX didn't hold your coin and has better privacy since you didn't need to submit KYC, on CEX KYC is mandatory... so you can be forced to submit KYC or your funds will be stuck.

Some CEX (e.g. Binance) offer no KYC if withdraw less than 2BTC, but as I said above KYC is mandatory on CEX.

Quote
Now, if I decide to put a larger amount in bitcoin, I definitely want to know
* fees (for all types of transactions)
* best ways to get out if and when I'm ever done with it (maybe never. But need to know just the same)
* ways to avoid losses through ignorance
There's a lot fees and it's vary from each platform (exchanges nor wallet)
1. Fee maker/taker (trading)
2. Withdrawal fee
3. Transaction fee (sending)

If you want cheap fee you can use Binance since the fee trading only 0.1% and withdrawal to fiat is 1%. As said above to reduce transaction fee you can use electrum wallet and create segwit address, adjust the fee based on the mempool size https://core.jochen-hoenicke.de/queue/#1,24h