Up until very recently, it was not the norm to have Cryptocurrencies regulated.
Cryptocurrencies and their tools and technology are decentralized, the people who invented the first crypto coins started their journey looking to create an unregulated and decentralized digital money that can be transferred anonymously. Cryptocurrency trading has been unregulated for quite a while until recent years and now regulators are starting to take steps to protect investors. When Cryptocurrencies began to take off in those earlier days, many regarded the practice as non reliable and in some jurisdictions today the industry is still banned by the regulators. However, things have changed quite a bit and now regulation framework is starting in some countries.
It must be noted that regulation is not mandatory yet in most countries. At the same time, the ultimate decision to regulate rests with the regulator who may choose not to regulate an exchange once a regulatory framework has begun – for whatever reasons. However, it is usually in the best interest to agree to regulation and comply when demanded. This is because it has been shown that traders tend to have more confidence when trading with regulated exchanges, platforms and broker-dealers. This means that in the future, regulated exchanges are likely to get the bulk share of the market.
Regulation means that online cryptocurrency exchanges will come under the scrutiny of the regulator and they will have to abide by certain rules and principles in their trading processes. All systems and processes including the trading platform that regulated exchanges are using will have to meet certain standards before any licenses will be issued. This reduces the likelihood of scam and fraud among exchanges and platforms and also provides greater levels of protection for traders who may file disputes.
There are many websites that allow you to purchase Bitcoin and other cryptocurrencies online with cash, bank transfer or credit card, among these popular websites are Coinmama, LocalBitcoins, BitPanda, WeMoveCoins, Paxful and CEX.IO.
There are so many Cryptocurrency exchanges right now that it is sometimes difficult to decide which one is best from a traders viewpoint. Currently none of them are regulated. Nevertheless, there are some names that keep popping up whenever one mentions Cryptocurrency trading. Among the list of top providers are CoinBase, Poloniex, Bittrex, Changelly and Shapeshift. While these platforms are similar in several respects, some of them stand out based on the uniqueness of the technology that they utilize and their reputation.
When shopping around for the right Cryptocurrency exchange, reputation should be among the priority features. While some newer platforms have not had ample opportunity to establish themselves in the market yet, the older, more well-known platforms will continue to be at an advantage. However, newer platforms can gain leverage by utilizing unique technologies that better meet the demands of users.