Cryptocurrency exchanges allow you to swap fiat money (dollars, Euros, rupee, etc.) for the cryptocurrency, or cryptocurrency for the cryptocurrency
Whether you're a seasoned professional trader or a total cryptocurrency novice, who only wants to buy the first crypto coin, the choice of cryptocurrency exchange always remains crucial for everyone.
Cryptocurrency exchanges allow you to swap fiat money (dollars, Euros, rupee, etc.) for the cryptocurrency, or cryptocurrency for the cryptocurrency. In other words, cryptocurrency exchanges are websites where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency.
Before making your first trade, it is important to do some homework. While choosing any cryptocurrency exchange, always bear following points in mind:
- Privacy- How much personal information does the exchange require?
- Limits-How much can you buy or withdraw?
- Fees-How much does the exchange charge for converting your money?
- Speed- How fast will your coins be delivered?
- Reputation- How long has the exchange been around? Is it regulated?
- Payment Methods – What payment methods are available on the exchange? If an exchange has limited payment options then it may not be convenient for you to use it.
Types of exchanges
- Trading Platforms – These are websites that connect buyers and sellers and charge fee for every transaction.
- Brokers – Anyone can visit these websites to buy cryptocurrencies at a price set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers.
- Direct Trading – Here you will not find a fixed market price, instead, each seller sets their own exchange rate. These are the platforms that offer direct person to person trading where individuals from different countries can exchange currency.
The Best Cryptocurrency Exchanges
With numerous platforms available to choose from, the task may seem difficult. Here we have compiled a list of the Best Cryptocurrency Exchanges for you! This list is based on above-mentioned factors like user-friendliness, accessibility, fees, security as well as user reviews. The list of exchanges is not in any specific order.
If you are buying for the first time, Coinbase is a good gateway into cryptocurrency world. It is one of the most popular trading platforms in the world. The interface is very clean, making your first purchase an easy one. Coinbase is an online exchange for Bitcoin, Ethereum, and Litecoin. These coins can be purchased from Coinbase through a digital wallet available on Android and iPhone or through trading with other users on the company's Global Digital Asset Exchange (GDAX) subsidiary. Users from the USA, Canada, UK, Europe, Singapore, and Australia can buy bitcoins, litecoins and ether with a credit card or bank account.
Thus, Coinbase scores high on account of good reputation, security, reasonable fees, and user-friendliness. However, it lacks in few aspects like, customer support, limited payment methods, supporting limited countries, a non-uniform rollout of services worldwide and GDAX is suitable for technical traders only.
Cex.io is a great platform that offers a wide range of services for using bitcoin and other cryptocurrencies. It is known to provide high liquidity, legal compliance, security, cross-platform trading, and margin trading. Cex.io enables users to easily trade fiat money with cryptocurrencies and conversely cryptocurrencies for fiat money. The website is secure and intuitive which makes storing cryptocurrencies safe in cold storage. For professional traders, CEX offers personalized and user-friendly trading dashboards and margin trading. Moreover, it also offers a brokerage service that enables beginners to buy bitcoin easily.
Apart from having a good reputation, CEX is a good option as it has features like supports credit cards, is beginner-friendly, charges decent exchange rate and is being supported worldwide. However, it has average customer support, long verification process and expensive depositing.
Unlike other exchanges, LocalBitcoins has an interesting exchange method. This is a P2P Bitcoin exchange with buyers and sellers in thousands of cities around the world. This is one of the Best Cryptocurrency Exchanges for peer to peer trading. With LocalBitcoins, you can meet up with people in your local area and buy or sell bitcoins in cash, send money through PayPal, Skrill or Dwolla or arrange to deposit cash at a bank branch. Thus, it supports markets all around the world and only takes a commission of 1% from the sellers who set their own exchange rates. Anyone can post a quick buy or quick sell ad on LocalBitcoins. Moreover, to ensure trading is secure, LocalBitcoins takes a number of precautions.
The pros of LocalBitcoins include no ID requirement, beginner friendly, usually free, instant transfers, available worldwide. Whereas, on the dark side, it is hard to buy large amounts of bitcoin and exchange rates are also high.
It is the largest Bitcoin exchange in euro volume and liquidity as well as it is a partner in the first cryptocurrency bank. They provide all the tools and reliability needed to make expert decisions surrounding crypto trading. As such it is the exchange of choice for many professional traders. It enables to trade digital currencies other than bitcoin, like Litecoin, Ripple, Ethereum, Monero, Ethereum Classic, Augur REP tokens, ICONOMI, Zcash, Dogecoin, and Stellar/Lumens. It offers a high-security environment with reliable cold storage, legal compliance, and advanced order types such as stop-loss orders.
Kraken gets thumbs-up for low transaction fees, high reputation, minimal deposit fees, excellent user support, security, and worldwide support. On the other side, it has some drawbacks like availability of limited payment methods, unsuitable for beginners, unintuitive user interface.
Poloniex is one of the world's leading cryptocurrency exchanges, founded in 2014. It is the largest crypto exchange in terms of volume. The exchange offers a secure trading environment with more than 100 different cryptocurrency pairings. As such it has good liquidity for most alt/BTC pairs. The exchange makes use of a volume-tiered, maker-taker fee schedule for all trades so fees are different depending on if you are the maker or the taker. Besides, there are no fees for withdrawals beyond the transaction fee required by the network.
So, Poloniex stands tall for providing fast account creation, BTC lending, high-volume trading, user-friendliness, low trading fees, open API. But, it lacks on account of slow customer service and no fiat support.
BitSquare is an easy, open-source, decentralized cryptocurrency exchange. It is a user-friendly peer to peer exchange that allows you to buy and sell bitcoins in exchange for fiat currencies or cryptocurrencies. Bitsquare is instantly accessible and without any need for registration or reliance on a central authority. It has a secured environment and does not hold user funds and no one except trading partners exchange personal data. So, Bitsquare is the perfect platform for those who want to remain anonymous and don't trust anyone.
Despite being secure, private, worldwide accessible with no registration requirement and offering a vast amount of cryptocurrencies, it lacks for not being beginner's friendly, offering limited payment options and having average customer support.
A veteran broker platform, CoinMama serves as a good place to buy your first bitcoin. They guide you through every step of buying your first Bitcoin in an easy to understand way. This platform is for anyone who wants to buy bitcoin or Ether using a credit card or cash via MoneyGram and the Western Union. They currently deal in BTC, EUR, and USD. CoinMama is great for those who want to make instant straightforward purchases of digital currency using their local currency.
The platform boasts features like easy user interface, good range of payment options, worldwide accessibility, and fast transaction time. However, it involves high exchange rates, a premium fee for credit card, has no function to sell bitcoin and average user support.
For those who want to make instant straightforward trades without signing up to an account or relying on a platform to hold their funds, Shapeshift is a great option. The platform support dozens of cryptocurrencies like Bitcoin, Ethereum, Litecoin, Zcash, Monero, Dash, etc. ShapeShift does not allow users to make purchases with debit cards, credit cards or any other payment system as it has a no fiat policy. It only allows for the exchange between bitcoin and the other supported cryptocurrencies.
Founded in the year 2011, Bitstamp is a European Union based bitcoin exchange known for building up a loyal customer base. The platform is well-known for providing advanced security features like two-step authentication, multisig technology for its wallet and fully insured cold storage. It is easy to get started as after opening a free account and making a deposit, users can start trading immediately. Moreover, the platform has 24/7 support and a multilingual user interface. However, it has limited payment methods and high deposit fees.
Gemini is a fully regulated licensed US Bitcoin and Ether exchange. The platform serves traders only limited cryptocurrencies as it trades in only three currencies, US dollars, bitcoin, and ether. The exchange operates via a maker-taker fee schedule with discounts available for high volume traders. It provides security and user-friendly interface. All deposits and withdrawals are free of charge. The platform has limited worldwide availability as it is only fully available to customers in 42 US states, Canada, Hong Kong, Japan, Singapore, South Korea and the UK.
Disclaimer: This is not an investment advice. It is of paramount importance that everyone should do his or her own due diligence before investing in any product, platform, tokens etc. Cryptocentral.io does not endorse any content or product published on this page. Our aim is to simply provide all the readers with the latest information in the field of cryptocurrency / blockchain industry that might be of interest to our readers.