Top 10 Cryptocurrency Exchanges

With the growth of Bitcoin skyrocketing this year, cryptocurrencies are highly exciting to watch. Although Bitcoin was the only cryptocurrency available before, today you have the option of buying over hundreds of alternative currencies. Whether you want to buy, sell, or invest, you have plenty of options in the cryptocurrency market. The rise of the cryptocurrency market has been brought about by the world currencies, which continue to become problematic as governments try to increase their grip on the activities of the platform’s users.

Before getting into a cryptocurrency market, it is essential that you watch the movement of the market instead of just jumping into it because the price is rapidly increasing. If you are someone who plans to buy a cryptocurrency to make a quick profit, you will most likely have a weak hand when trading in this market. You may be tempted to abandon the ship too early when the price starts going the opposite direction.

As an investor, it is essential that you educate yourself about the choices in cryptocurrencies. Some individuals choose to trade certain type of cryptocurrencies because they believe that it will grow exponentially due to the potential of underlying technology. There are also investors who choose to diversify their portfolios with different cryptocurrencies such as Bitcoin, Ethereum, Monero, and Ripple. Identify which cryptocurrency will work best for you and once you have decided, the next important step is to find a cryptocurrency exchange, which is the most popular way for traders to acquire their coins.

What is a cryptocurrency exchange?

To start out in the cryptocurrency world, you must select an exchange. You can think of the cryptocurrency exchange similar to the way that money is exchanged at the airport. The only difference with cryptocurrencies is that instead of changing it to another foreign currency, you change it to virtual currencies such as Bitcoin.

There are different types of cryptocurrency exchanges that you can choose from, depending on the purpose of your exchange. You can choose direct trading exchanges, cryptocurrency brokers, cryptocurrency funds, and the most popular are traditional cryptocurrency exchanges.

Factors to consider when selecting a good cryptocurrency exchange

There are a variety of exchanges out there but selecting the right one can be a difficult task. All the exchanges offer a unique appeal. Now, you need to figure out which is the best exchange for you. Answering this question is highly subjective as it depends on your needs and requirements.

You need to consider what you are doing in the cryptocurrency world, how you plan to do it, and the reason why you are doing it. From there, you can begin to narrow down your options to exchanges that best suit your needs.

  • Location

Depending on the country that you reside in, the regulations that your government impose can affect how these platforms operate in your country or if they’re allowed at all. If not, you will spend all of your time researching the best cryptocurrency exchange, only to find out that it is not available in your country.

  • Payment method

Take into account the method of payment you will use to find a cryptocurrency exchange account. Take your time in choosing the best method of payment. Some investors care about the fees that are required for each type of payment methods. You can save a lot of money, especially if you intend to buy a lot of cryptocurrencies.

One thing to keep in mind is that you are only able to purchase using debit or credit cards on selected exchanges. Not many exchanges allow this method of payment these days. However, you can use Bitcoin as a payment method if you want to convert it to an alternative currency. Even if you found an exchange that allows you to buy using a credit or debit card, you will be charged high transaction fees.

  • Cryptocurrency type

Keep in mind what type of cryptocurrency you intend to buy. In fact, there are hundreds of cryptocurrencies available on the market today, so you have many choices. It is essential that you consider your options very carefully before you buy. Bitcoin is the most popular cryptocurrency on the market, but there are also other currencies such as Ethereum, Ripple, and Monero.

  • Research

As with any investment, it is highly recommended that you learn more and do research to identify which cryptocurrencies can work best for you. We can also apply this concept to searching for the cryptocurrency exchange. One of the best ways that you can identify a good cryptocurrency exchange is if it has high liquidity.

Do some research on the exchange that you want to use. You also probably need to find reviews of the exchange from actual users. This will help you to finalize a decision on which cryptocurrency change to use.

Which are the best cryptocurrency exchanges?

There are plenty of cryptocurrency exchanges in the market but selecting the best one depends on what you plan to do in the cryptocurrency world. That said, here are our picks for the best cryptocurrency exchanges today. We have included pros and cons of each platform so that you can make a more informed decision.

  1. Bitpanda

This is the world’s most popular exchange, and it has established itself as a trustable exchange in Europe. This company is based in Austria, and it offers a range of options for cryptocurrencies, allowing you to trade cryptocurrencies such as Bitcoin and Ethereum. It is great for both beginner and advanced traders because it has a fully automated platform that has instant transactions.

This platform is beginner friendly because it has an easy-to-use interface. Before you decide to use this cryptocurrency exchange, keep in mind that only European Union members can purchase cryptocurrencies from this platform. Also, this platform is very vague on the fees that are charged to users.

  1. Bitfinex

This is probably the most well-known cryptocurrency exchange in the world. It has an excellent reputation, and you can purchase all of the major cryptocurrencies on it and also a variety of other alternative coins. For traders searching for high security when trading, this platform also has a highly rated security system. It is available for Android and iOS.

Slightly experienced users will prefer this platform because it provides advanced features compared to other platforms. However, one of the downsides is that this platform only allows you to fund your account using USD. Despite this, the benefits of this platform include the user-friendly interface and no withdrawal or deposit fees for cryptocurrencies.

  1. Coinbase

This platform does not only function as a cryptocurrency exchange, but it is also an online wallet. This wallet has over 4 million customers, which demonstrates the level of traffic this exchange has. The major pro of using the exchange includes high liquidity, and it is well known for being convenient to use even for beginners.

  1. Localbitcoins

This is a peer-to-peer Bitcoin exchange which allows buyers and sellers to trade among themselves based on second trade terms. In addition, it also utilizes Escrow which ensures the security of the funds. This platform is one of the best platforms in the world because of high security and the variety of payment methods available. Despite that, because it is a peer-to-peer transaction it is exposed to the risk of the transactions being scanned.

If you do choose this exchange, you need to be cautious about how you buy and sell your cryptocurrencies. If you choose to pay using cash, you will have to fork out a good deal of money, because the fees imposed by the exchange are quite high. Despite this, this exchange still receives a lot of support because people are willing to pay extra for the amount of privacy that this exchange guarantees. Another good thing about this exchange is that there aren’t any buying or selling limits.

  1. Coinmama

This is one of the world’s most well-known exchanges for the major cryptocurrencies, Bitcoin and Ethereum. This is one of the many exchanges that allows you to purchase cryptocurrencies by using your credit card and sell them on the same website.

Again, the fees imposed by this website can be quite high especially if you regularly use this platform. Hence, we recommend you to look at other types of cryptocurrency platforms available that may be a lot cheaper than this platform. However, if you are still interested, this platform is supported in 226 countries worldwide.

  1. Kraken

This exchange platform enables traders to trade major cryptocurrencies. It also offers payment through wire transfer. They take security very seriously as they use two-factor authentication and PGP email encryption. Proving your identity is also essential to sign up. Despite this, you may face some problems especially during peak times because the system can be overwhelmed.

  1. Shapeshift

This is yet another exchange that has established its position as a powerful online broker in the cryptocurrency market. It was first created in 2013 and is accessible on both web and mobile platforms. It offers three types of transactions which are Bitcoin to Altcoins, Altcoins to Bitcoin, and Altcoins to Altcoins.

Besides that, it also offers to trade for several cryptocurrencies, such as Ethereum, Monero, and Dash. One of the downsides of this platform is that you need to purchase your coins elsewhere before you can utilize this platform.

  1. Changelly

This exchange is not as popular compared to other cryptocurrency exchanges on this list, but it is still a good option to buy or sell cryptocurrencies online. The reason being is that this platform is very convenient and fast to use. In fact, it also offers a convenient way to switch between alternative coins. The level of liquidity that they offer is good, and it offers to trade for the main cryptocurrencies.

As it is a small exchange, it has the benefit of charging lower fees compared to the other exchanges. It only charges 0.05%, regardless of the amount of exchange. Also, this platform does not require any verification for purchases or cryptocurrencies.

  1. Poloniex

If you’re searching for a heightened level of privacy for cryptocurrency trading, this platform helps you do that by allowing you to create anonymous accounts. They provide support for over 90 different cryptocurrencies. However, you should only use this platform if you are well versed in the cryptocurrency world. One of the downsides of this platform is that it does not offer any mobile application.

  1. Bitstamp

This is a European Union based marketplace founded back in 2011. It is also one of the first generation Bitcoin exchanges that has built up a loyal customer base. This exchange offers very low transfer fees which are 0.5% for any transactions under $500. If you engage in transactions over $150,000, you will only be charged at 0.2%. The interface is also very easy to use, and it supports different types of currencies such as USD and Swiss Francs.

Final thoughts

When it comes to cryptocurrency exchanges, you have plenty of choices out there. However, this guide outlined the top 10 cryptocurrency exchanges that you can consider. With different types of unique features such as no fees, low fees, mobile apps, and more, you can select the cryptocurrency exchanges with features that you need. When it comes to selecting the right cryptocurrency exchange for you, it is good practice to do your independent research. Dig deep for independent reviews of these exchanges as user opinions are highly useful to determine which cryptocurrency exchange is the best.

Regardless of how good you are at determining which cryptocurrency is going to make it in the future, this is all useless without a good cryptocurrency exchange to support your efforts. Having a trustworthy cryptocurrency exchange is crucial to successful crypto investing. There have been several cases of hacking in major cryptocurrency exchanges. Researching which exchanges have been exposed to these risks will also avoid you getting into any trouble.

There are also exchanges which charge expensive fees on transactions. You have to consider whether you are willing to take on the cost of these transactions. Some investors don’t mind about paying extra because of the security that the exchange offers and the large number of cryptocurrencies that they are trading.

The cryptocurrency world has proved to be an exciting development to follow as prices skyrocketed to a vertical rise this year, particularly for Bitcoin. It is inevitable that the growth of cryptocurrencies will change how economies are run and how our day-to-day transactions are done. Moving from a centralized currency to a decentralized virtual currency is one of the main reasons why people are backing the idea of cryptocurrencies. In a nutshell, we should keep a close eye on cryptocurrencies and see where the market is heading in the future.

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