How to Choose Good Cryptocurrency Exchange?
High security
Users need to choose exchanges that provide institutional-grade security. Trustworthy exchanges often require an extensive verification process to register the customer to ensure the security of your hard-earned money. Go for exchanges that offer 2FA.
Insurance coverage
It is preferable to use Cryptocurrency exchanges that provide insurance coverage to store coins online on their trading platform and use the cold storage coverage to hold crypto offline with the reputed insurance provides.
Exchanges comply with laws & regulations
Some exchanges require different laws and regulations such as KYC and AML practices to withdraw funds or imply certain limitations, obligating users to provide proofs of identity certain. When you search for good cryptocurrency exchanges, these exchanges that comply with laws and regulations would be your first choice.
Leverage trading
Derivative exchanges offer leverage trading. Derivates refer to the contract that derives its value from the performance of the underlying digital currency. Different exchanges offer 1x to 100 x leverage on their products. For instance, Bitmex offers the highest leverage up to 100 times on Bitcoin and popular altcoins.
Leveraged trading is also an important factor to consider in a good crypto exchange.
Fees
This is also an imperative factor in choosing the right crypto exchange. Exchanges with a small fee for each trade are preferable to exchanges that charge a high transaction fee.
Trading Volume
Select the exchanges with high trading volume. High net worth traders rely on exchanges that exhibits a high trading volume. If a trader wants to sell 100 bitcoin or above, he/she would not be able to sell them on a low volume exchange. You may verify the trading volume of the exchange by reviewing the coinmarketcap site.
Do your own research
Before you go to create an account on any exchange, you need to go through extensive research the exchange considering factors of reputation, available pricing, and pairs, security standards, laws and regulations aspects, crypto to crypto, fiat to crypto options, available payment methods, etc.
And dig deep to secure your money & earn more on your investment as well.
Local Bitcoin
LocalBitcoin is a peer-to-peer oldest Bitcoin exchange. Nikolaus Kangas founded the exchange in 2012 in Finland. Currently, Sebastian Sonntag is the CEO of LocalBitcoin.
In brief
- It provides tremendous guide support to beginners about how to buy and sell Bitcoin by watching the videos.
- It supports more than 60 different payment methods to buy and sell Bitcoin online. Some of them are Bank transfer, SEPA, Western Union, Payoneer, Skrill, PayPal, MoneyGram, and others.
- User can store their Bitcoins in LocalBitcoin wallet. Still, the exchange suggests different BTC storage options such as a computer or mobile storage to better control over your Bitcoin, paper wallets for secure storage. However, the exchange particularly advised using Electrum Bitcoin wallet.
- It charges a 1% flat fee on transactions performed through the exchange.
Features
1. Escrow Service:
LocalBitcoin offers an integrated escrow service that secures all online trades on the platform. Users can withdraw Bitcoin when the seller confirms the trade completion.
2.Creating advertising and trading Bitcoin:
It allows its user to create an advertisement with the price and prescribed payment method to offer Bitcoin.
3. Two – Factor Authentication (2FA) verification:
It adopts a 2FA verification system to avoid theft of Bitcoin.
Pros
- It verifies the identity of users by employing KYC rules.
- Low fees as compared to other exchanges
- All online trades are protected by escrow
- Wide range of payment options
Cons
- Weak customer support
- Scam advertisements issue
- Poorly organized interface
The Popular Available cryptocurrency is Bitcoin
Kraken
Kraken is the largest and the oldest Bitcoin cryptocurrency trading platform in the world.
In brief
- Launched in 2013 by Jesse Powell, since then, it is available to 48 US residents except for Washington DC and New York and 190 countries, with 59 listed cryptocurrencies.
- It offers a variety of additional services, including Staking, Bitcoin Futures trading, and margin trading.
Features
1. Best designed user interface
Kraken’s exchange is one of the best design user interfaces that let you intuitive experience whether you are a newbie or seasoned trader. The user interface guides how you get started trading on the platform, make deposits/withdrawals, and manage the crypto portfolio. Additionally, it also suggests users about how to drive your digital investment to the next level.
2. Wide range of funding options
It offers various funding options in cryptocurrencies and fiat funding options to quickly and securely trade fiat to crypto anywhere in the world.
3. Cryptowatch
Kraken allows users to trade multiple crypto exchanges by watching your portfolio and 2,000 cryptocurrency markets across different crypto exchanges. It analyzes crypto markets & facilitates price alerts to catch the best opportunity, even on mobile devices.
Pros
- Kraken gives you 24/7/365 live chat support anywhere in the world
- It protects your investment with security measures, a high standard of legal compliance, deposits your coins offline, 2FA, email confirmation for withdrawals, constant real-time monitoring for suspicious activities, and others.
- Kraken mobile app enables instant cryptocurrency buying and selling with your debit or credit card
Cons
- Focuses on high-net-worth customers
- In the US, it is not available to the residents of Washington DC & New York
- Not best for beginners
Popular Available cryptocurrencies
Bitcoin
Ethereum
Tether
Monero
Ethereum Classic & others
Coinbase
Coinbase is one of the leading US-based crypto exchanges and the most trusted cryptocurrency exchange that lets you buy, sell and trade in a wide range of popular digital currencies.
In brief
- It claims the largest trading network with a total volume traded over $320 billion and more than 35 million verified users in 100 plus countries.
- A new user can start trading in a few minutes by following three easy steps, creating an account, link your bank account to the exchange, and start buying and selling on the Coinbase platform.
- The exchange allows users to earn up to $167 worth of crypto by watching videos, and Users will receive crypto in their Coinbase wallet after completing a simple quiz.
Coinbase rank and exchange score on Coinmarketcap
Coinbase crypto exchange ranks at the third position on Coinmarket cap with an exchange score of 8.8, accompanied with a trading volume of $2.557 billion, 47 listed coins, and 3 fiat supported currencies, including USD, EUR, and GBP.
Features
- Manage your portfolio
Coinbase Exchange acts as a one-stop-shop where users can manage their cryptocurrency portfolio. It means they can buy & sell their digital assets; keep tracking all cryptocurrencies in one place.
2. Recurring buys
Users can schedule buying cryptocurrencies on a daily, weekly, and monthly basis.
3. Wallet app & Mobile apps
It offers a wide range of services such as the Coinbase Wallet app and Coinbase Mobile apps for Android and iOS to be the leader of the markets.
Pros
- Coinbase exchange extends industry-standard security features. It let you store offline your digital assets in a secure manner.
- Coinbase protects your cryptocurrency by the insurance cover.
- It adopts industry best practices to save your Bitcoin, enables 2 step verification process on each device and service. Furthermore, it also offers strong hash passwords on account creation and stores applicants’ credentials separate from the database.
Cons
It charges high fees as compared to other crypto exchanges
Limited coins are available to purchase
In the US, it extends its services to 42 US states
Popular Available cryptocurrencies
Bitcoin
Ethereum
Chainlink
The Graph
Stellar and others
Bitstmap
Bitstamp is the largest cryptocurrency exchange in Europe. It offers both crypto to crypto and crypto to fiat exchange services. It was founded in 2011.
In 2019, Bistamp granted a virtual currency license, BitLicense, from the New York Department of Financial Services, authorizes the exchange to conduct digital currency operations in the state of New York.
In brief
In April 2016, Bitstamp became the first fully licensed Bitcoin exchange of Europe, licensed to all 28 EU countries.
- It utilizes a multi-signature wallet to protect the digital asset.
- Bitstamp offers military-grade storage of cryptocurrencies & contracted with Xapo to ensure safe handling of assets with its cold storage wallet.
- It allows fiat deposits by SEPA transfer, International Bank WireWire, or through credit/debit card.
- It accesses advanced trading tools, analytical tools with the web platform, mobile app, or APIs.
- It doesn’t charge a fee on deposits and withdrawals of cryptocurrencies.
- One of the four reputed accounting firms, including Deloitte, EY, KPMG, and PW, annually audits the Bitstamp.
Features
1. Ease of trading
Users can buy cryptocurrencies instantly with their Debit/Credit card. US users can use ACH for instant deposits. Users can cash out their funds in seconds to the bank account. Undoubtedly, it facilitates crypto trading with a wide range of global bank deposit methods.
2. High security- standards
It stores 98% of its assets safely offline. Bitstamp lets you allow opening both a personal account and a corporate account by completing the account registration KYC form. It verifies the identity of its customers after receiving requested documents.
3. Licensed Exchange
Bitstamp is identified as the first licensed European Exchange working under Luxembourg Financial Industry Supervisory Commission ( CSSF).
Pros
- Bitstamp is a fully licensed and regulated crypto exchange in the European States.
- It offers 24/7 quick customer support to all its customers worldwide by direct telephone contact and email.
- It offers multiple payment method options with a low fee on SEPA deposit and withdrawal facility to European residents. It offers multiple crypto buying options with a bank account, credit card, Visa, or MasterCard.
Cons
- Bitstamp allows limited supported cryptocurrencies
- Extensive details require for personal account verification and corporate account verification.
- Crypto trading only, no margin trading
Popular Available cryptocurrencies
Bitcoin
Ethereum
Ripple
Litecoin, and Chainlink, etc.
Binance
Binance is the world’s largest cryptocurrency exchange. It offers a wide range of coins to buy, sell and trade with its user-friendly interface. Binance coin (BNB) is the native token of the exchange that powers the Binance blockchain ecosystem. Using BNB coin, users can avail 25% discount on the trading fee.
In brief
- It is a Malta-based leading crypto exchange that offers crypto to crypto and fiat to crypto trading worldwide.
- Binance can support 2 billion average daily volume and 14 million transactions per second.
- It supports the infrastructure of the blockchain ecosystem.
- It does not charge a fee on deposit for the fund on the exchange, while withdrawal fees vary. As the volume of the trading fee increases, the trading fee decreases. 0.1% highest trading fee on the trade below 50 BTC while the lowest trading fee for the maker is 0.02% and 0.04% for a taker on the trade below 15000 BTC or more.
Features
1. Binance ecosystem
Binance supports the infrastructure of the blockchain ecosystem, offering a large range of incredible services, including Binance lab; an incubator for the top blockchain project, Binance Launchpad; a token launch platform for entrepreneurs, Binance Info platform, Binance Research that provides researched data-driven insight to the investors, Binance academy; a learning hub for crypto traders, Binance charity, etc.
2. Binance Trust wallet
Users can buy, sell and store their coins with a multicurrency decentralized Binance Trust wallet. It works with Binance exchange, and Kyber Network protocol, allowing the traders to make quick trades on the exchanges.
3. Binance Mobile App
With the Binance Mobile App, users can make crypto trading and crypto margin trading in different cryptocurrency markets.
Pros
- It charges the lowest transaction fee of 0.1% and even less on the use of BNB Coin
- It provides high liquidity
- It offers a choice of hundreds of different coins
Cons
- US traders are not allowed to trade with Binance
- Lack of telephonic support
- Not regulated exchange
Popular Available cryptocurrencies
- Bitcoin
- Ethereum
- ChainLink
- Polkadot
- Binance USD
Bitmex
Bitmex is a peer-to-peer trading cryptocurrency and derivatives trading platform. In 2014, it was founded by Arthur Hayes, Ben Delo, and Samuel Reed in Seychelles. At present, Arthur Hayes is the CEO of the exchange. It offers a variety of trading services, including margin trading with leveraging offerings up to 100 times. (It means if you have Bitcoin worth equivalent to $100 in your account, you can trade $10,000 worth of Bitcoin), and Futures trading).
In brief
- On February 17, 2016, Bitmex became the world’s first Bitcoin denominated futures contract on a Chinese A-Share index.
- On October 01, 2020, faced criminal charges, the CFTC charged Bitmex with operating an unregistered trading platform, failed to implement AML and KYC regulations, violating the US Bank Secrecy Act.
- In November 2020, Bitmex partnered with Software and Compliance firm Eventus Systems to set up AML regulations and surveillance measures.
- Bitmex determines all gains and losses in Bitcoin rather than fiat currencies.
Features
1. Leveraged crypto trading
Bitmex offers up 100 times leverage on Bitcoin and popular cryptocurrencies.
2. High liquidity
Bitmex offers the largest market liquidity of XBTUSD. It claims to offer 1500% more Bitcoin/USD liquidity.
3. Multiple contracts
The exchange offers a decent range of contract trades in Bitcoin. Trade up to 100 times leverage on Bitcoin Perpetual contract no expiry limit at low fees.
Similarly, trade up to 50 x and 20x leverage on Ethereum contracts and XRP futures contract, respectively.
Pros
- It employs multiple factor security
- It offers advanced margin trading
- Offers up to 100x leverage
- No fee charges on deposit and withdrawal of Bitcoin
- It stores all Bitcoin in the cold multi-signature wallet
Cons
- It is not suitable for beginners
- No option available for fiat deposits/withdrawals
- Only accepts Bitcoin for deposit and withdrawal
Popular Available cryptocurrencies
- Bitcoin
- Ethereum
- XRP
- Bitcoin Cash
- Litecoin
GEMINI
Gemini is an FCA regulated licensed New York-based cryptocurrency exchange. It was founded in 2015 in the US. Gemini offers to trade in crypto to crypto and fiat to crypto pairs as well.
In brief
- It launched its stablecoin, named Gemini dollar (USDT), to peg the cryptocurrency to the stable dollar.
- It is the first licensed Ether exchange & it also introduced the first Bitcoin Futures contracts in the crypto world.
- The exchange is great for beginners and expert traders, offering various advanced tools, including active traders, Gemini Custody, Gemini clearing, Gemini dollar, and Gemini Pay, to exhibits ease of trading.
- The exchange is built with industry-leading security; it protects your account with a hardware security key via WebAuthn.
Features
1. Gemini Credit Card
Gemini is introducing its own Gemini credit card. With a card, on spending USD, users can earn up to 3% back in Bitcoin or another crypto on every purchase. The card will be available to use to the residents of 50 US states. There should be no exchange fees charged on crypto rewards. The platform could protect the card by offering institutional-grade security.
2. Gemini Mobile and Wallet
The exchange is embedded with a Mobile app and wallet app to buy, sell and store crypto assets on the exchange.
3. Insurance Cover
Gemini’s online crypto storage is insured while it secures offline asset storage acquiring insurance cover from the leading insurance providers.
Pros
- It is a fully licensed cryptocurrency platform
- Insurance coverage to hot wallets of exchange
- Strong customer support by email, telephone call, and direct text messaging through the web
- The user-friendly mobile app lets you price alerts to grab the profit gap
Cons
- Limited coins support to buy up to 29 cryptocurrencies
- Limited deposit options
- Dual charges (commission fee and convenience fee) on buying and selling crypto through the mobile app
Popular Available cryptocurrencies
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
- ChainLink
- Ren
- Yearn.Finance
Changelly
Changelly is a non-custodial instant crypto exchange. Unlike custodian exchanges like Binance, Coinbase, or Kraken, non-custodian Instant exchanges do not receive and store crypto funds into their trading platform. It enables traders to make trades using their crypto wallets.
In brief
- Changelly allows traders to trade with more than 150 cryptocurrencies.
- Changelly is extending services to 2 million customers & 50 plus markets with competitive trading fees and fast transactions.
- It offers an intuitive interface, secure transactions, and the best exchange rates.
- It charges a fixed charge of 0.25% fee for crypto-to-crypto swaps.
Features
1. Trusted exchange
Changelly is a trusted exchange that offers the best exchange rates on the market. Users can buy Bitcoin/ altcoins with fiat currencies such as USD, EURO & GBP. It partners with the crypto industry’s reputed players, including Binance, Coinomi, MyEther Wallet, Exodus, and Ledger to provide the trusted services to its customers.
2. Changelly Web and mobile app
Users can use Changelly web and mobile app to exchange rate (Exchange rate for cryptocurrency exchange) or buy.
3. Highly intuitive interface
Changelly embedded with a highly intuitive interface and simple to use.
Pros
- It allows traders to use trading pairs with a simple sign up processes using their email or social media page. However, in case you make trade fiat to crypto over $150, Changelly asks the trader to connect your bank to comply with KYC procedure
- 24/7 live chat support available
- Low withdrawal fees on most popular cryptocurrencies
Cons
- Accepts only 3 fiat currencies to buy cryptocurrencies, namely USD, EUR, and GBP.
- It does not hold the digital assets of the users in the custody of exchange.
- It offers less advanced trading options when compared to the custodial service exchanges, including derivatives, order placement, stop-limit orders, and margin trading.
Popular Available cryptocurrencies
Bitcoin
Ethereum
Ripple
Litecoin
Bitcoin Cash, and others.
CEX.IO
Cex.io is a trustworthy and secure Bitcoin exchange to buy and trade cryptocurrency. There are over 3 million users registered on the platform. It runs its operation in 47 US states and 99% of countries supported.
In brief
- It enters the crypto market in 2013.
- Crypto to crypto and fiat to crypto exchange.
- It is constantly listing new coins after thorough checking.
- Cex.io is a Bitcoin trading platform that ensures industry-standard security practices & high-level customer support.
- CEX.IO facilitates the service of margin trading and staking. Users can trade cryptocurrencies on margin with up to 100x leverage. With Staking, you can earn by simply holding coins on the platform.
- CEX.IO is equipped with advanced order matching algorithms to maintain high liquidity order book.
Features
1. Instant purchase & easy withdrawals
Cex.io helps you quickly purchase cryptocurrencies using debit or credit cards and easily withdraw your funds to a card or bank account just in a few clicks.
2. Multiple payment methods
Cex.io accepts multiple payment methods, including Visa, Mastercard, bank transfer, (SWIFT, SEPA, ACH) faster payments to fund the account.
3. Compliance with regulations
Cex.io compliance with AML and KYC regulations. Users will verify their identity by submitting the required information such as passport copy, ID copy or driving license, and proof of residency documents to avail of the maximum payment limits and withdrawal funds
Pros
- With the CEX.IO mobile app, users can buy, sell, earn, and transfer their cryptocurrencies anywhere in the world.
- It extends different trading pairs
- It offers 24/7 dedicated customer supports via call, email, live chat
- It provides strong security protection against DDOS attacks, full data encryption, crypto cold storage, and compliance with PCI DSS standards to protect your funds.
- It offers reasonable fees for takers and makers.
Cons
- The account verification process restricts those users who want to keep anonymous their identity
- Lack of coin options
- It is available in 47 US states
Popular Available cryptocurrencies
Bitcoin
Ethereum
Tether
Cardano
Bitcoin Cash and others
Wall of Coins
Wall of Coins is a peer-to-peer Bitcoin cryptocurrency. It is the most trusted marketplace where users can buy and sell cryptocurrencies with cash.
In brief
- Wall of coins is a US-based crypto exchange, and currently, it doesn’t work outside the US.
- Users will only pay the network transaction fee. It doesn’t charge a fee on selling through its exchange.
- The platform directly connects the buyers and sellers and simplifies the process of buying and selling coins. Users can buy and sell their orders using smartphones.
Features
1. Cash deposits and withdrawals
Wall of Coins only supports cash deposits and withdrawals options. Wall of Coins can’t accept credit cards for payment. It follows the cash-based system to protect the sellers. Users can’t deposit the bank’s ATM, however; you can deposit with the bank teller.
2. Quick access
It offers quick access to the marketplace. Users can open an account by providing an email, contact number, and password to create an account on the platform. Users can buy and receive their coins within 15 minutes without getting involved in the process of registration.
3. Instant Cold storage
It stores your coins securely offline.
4. Transparency
It exercises a high level of transparent mechanism. Buyers’ orders are publicly visible, and their coins are immediately withdrawn into the private wallet while sellers’ transactions are visible into their selling account.
Pros
- Fastest customer dedicated customer support through various channels, including live chat, email, telephone, and social media outlets.
- Low fee charges around 1-2%
- No registration and verification process
Cons
- Deposits and withdrawals are limited to a cash-based system
- Fees are not publicly disclosed
- Limited coins option available
- Not regulated exchange
Popular Available cryptocurrencies
- Bitcoin
- Bitcoin Cash
- Dash
- Ethereum
- Groestlcoin
- Litecoin
What is Cryptocurrency Exchange?
Cryptocurrency exchanges are online platforms where traders/investors can buy and sell Bitcoin or altcoins using different fiat currencies or cryptocurrencies.
The most popular exchanges are Binance, Coinbase, Bitmex, Bitstamp, CEX.IO, etc.
Crypto trading is a trading activity that allows traders to buy and sell cryptocurrencies and make a profit through price difference between currencies.
These exchanges work similarly to traditional stock exchanges. On stock exchanges, traders buy and sell shares & make a profit from their changing rates. Similarly, on crypto exchanges, traders use cryptocurrency pairs to make a profit from the currencies changing rates.
If a trader wants to trade between different cryptocurrencies, he/she will pay a currency conversion fee.
Different cryptocurrency exchanges offer different payment methods to deposit funds, including credit/debit card, bank wire transfer, Paypal, Payoneer, etc.
Users can buy Bitcoin or altcoins using accepted payment modes and store their funds in a crypto wallet. Some exchanges provide insurance coverage to the wallet. There are two popular types of wallets. Hot wallets are online wallets, while cold wallets are offline wallets.
Different exchanges offer different wallet storage facility. For instance, Gemini’s online crypto storage is insured while it secures offline asset storage acquiring insurance cover from the leading insurance providers. LocalBitcoin offers an integrated escrow service that secures all online trades on the platform.
There is a subtle difference in the pricing of assets in different exchanges because they are not connected, and traders are taking advantage of the differences in prices.
Best for Beginners
Beginners are not familiar with how to buy, sell and trade with trading tools. Some significant factors that are imperative for beginners when searching for cryptocurrency exchanges are ease of use, safe storage of funds, available payment methods to buy and sell coins, and where users can frequently trade.
Here is the list of the two most popular and trusted cryptocurrency exchanges: the best exchanges when investing or trading in Bitcoin and altcoins.
It is one of the best cryptocurrency exchanges for beginners where users can trade in just a few minutes by creating an account & linking their bank account to the exchange and trading. Coinbase is a US-based exchange which a fully regulated and licensed exchange. It operates in 42 US states.
Coinbase offers a reputed variety of altcoin and high liquidity. It is extremely easy to use exchange with its simple user interface. It also offers insured custodial wallets to store your Bitcoin and altcoins.
Traders can easily buy, sell and transfer their cryptocurrency using Coinbase Mobile app. On Coinbase, users can manage their cryptocurrency portfolio in one place.
Coinbase has the largest trading network with volume traded of $320 billion and over 35 million registered users in 100 + countries.
It is another best cryptocurrency exchange for beginners, clean & user-friendly interface. It is the most reliable Bitcoin exchange with more than 3 million registered users. It ensures industry-standard security practices & protects against DDOS attacks.
CEX.IO supports multiple payment methods for buying and selling digital assets via credit/ debit cards and bank transfer like SWIFT, SEPA, ACH)
The dedicated customer support via telephone, live chat is available 24/7 on the platform to solve the clients’ issues.