Before you buy cryptocurrency and start trading on a cryptocurrency exchange, you must keep in mind that all coins are not created equally or for the same purpose. In fact, unless you are a currency or precious metals investor or trader, you might be even further behind in your understanding about cryptocurrency and how cryptocurrency market functions.

Instead of just advertising that they are the best cryptocurrency trading platform, many cryptocurrency trading sites have resources to teach you that each cryptocurrency is created for a different reason and/or has a different function or implementation.

If you try to read your first daily cryptocurrency article with no background, it is easy to get tripped up on various types of cryptocurrency market trading, finding the best trading platform for cryptocurrency, security tokens, forks, stable coins, digital assets, etc.

In a normal scenario; a bank being a financial institution has the authority to accept deposits from public and give loans. Banks will provide wealth management, currency exchanges services and offer credit facilities to its customer base. Banks have played a critical role in the stability of the economy, thus are regulated in most countries around the world, unlike cryptocurrency exchange. Some of the growing concerns regarding a bank are its capital adequacy requirements. These are based on the capital mandates set by the Basel Committee on Banking Supervision.

On the other hand, a cryptocurrency exchange platform is concerned with managing withdrawals and receiving deposits as well as supplying credit to traders and institutional investors. Traders will use their funds to buy cryptocurrency online, whereas customers will use their cryptocurrency trading platforms for basic checking and saving