Cryptocurrency exchanges can simply be referred to as online platforms where you can buy, sell, or exchange cryptocurrencies for another digital currency or traditional currencies, such as the U.S. dollar or the euros.
Those who wish to trade professionally and have access to sophisticated trading tools will probably have to use an exchange, which requires them to verify their identity card and open an account.
If you just want to trade occasionally and directly, there are platforms you can use that don’t require an account.
Types of cryptocurrency exchanges
- Trading platforms: these are platforms that connect buyers and sellers and charge a fee for each transaction.
- Direct trading: these platforms offer direct person-to-person trading, where individuals from different countries can exchange currency from their bank account. Direct trade has no fixed market price, but each seller sets their exchange rate.
- Brokers: These are platforms that anyone can visit to buy cryptocurrencies at a price set by the broker. Cryptocurrency brokers are similar to Forex traders.
What to Consider Before Joining a Cryptocurrency Exchange
It is important to do some homework before you start trading. Here are some things to check before doing your first exchange;
The best way to discover a cryptocurrency exchange is to search user reviews and well-known sites in the industry. You can ask questions on forums like BitcoinTalk or Reddit.
Most cryptocurrency exchanges must have information on exchange rates on their websites. Before registering, make sure you understand the deposit fees, transactions, and withdrawals. The prices can vary considerably depending on the exchange you use.
What are the payment methods accessible on the cryptocurrency exchange? Credit card? Debt? Bank transfer via your bank account? PayPal? Can you exchange USD – EUR? If the cryptocurrency exchange has limited payment options, it may be inappropriate to use it.
Keep in mind that buying a cryptocurrency with a credit card will always require authentication and that the prices will be higher as there is a higher risk of fraud and more transaction and processing costs high.
Purchasing cryptocurrencies by bank transfer will take much longer, as banks need time to process it.
The broad majority of Bitcoin exchanges in the United States, United Kingdom, usually require some form of ID card verification to make deposits and withdrawals. Certain cryptocurrency exchanges will allow you to remain anonymous.
Although the verification, which can take several days, may seem complicated, it protects the exchange against all kinds of fraud and money laundering.
Certain specific user functionalities offered by the cryptocurrency exchanges are only available in certain countries. Ensure that the cryptocurrency exchange you want to join gives you full access to all the tools and features of your country’s platform.
Different cryptocurrency exchanges have different exchange rates. You will be surprised at how much you can save by comparing prices. It is not uncommon for rates to fluctuate up to 10% or more in some cases.
Which crypto exchanges are best for buying bitcoin?
There are various crypto platforms to choose from today, but not all cryptocurrency exchanges were created equally.
This list below is based on user feedback and several other criteria, such as ease of use, accessibility, cost, and security.
Best Cryptocurrency Exchange List
Bitbuy.ca is a Canadian digital currency platform that initially started as InstaBT in 2013. Bitbuy’s mission is to provide convenient, reliable, and secure access to bitcoin and other digital currencies.
The standard of this platform is excellent customer service, ease of use, and quick response time for deposits and withdrawals. Serving both beginners and experienced traders, it is one of the fastest-growing buying/selling cryptocurrency exchange in Canada.
There are excellent options for users who want to buy and maintain cryptocurrencies or users looking for a reliable means to quickly and easily convert their currency to cryptocurrency.
- Advantages: Excellent customer service, Quick registration, verification, Quick processing of CAD deposits and withdrawals, and low rates.
- Disadvantages: Offer only BTC, ETH, LTC, BCH, Available to Canadians only.
ChangeNOW is a free registration cryptocurrency exchange platform for unlimited crypto conversions.
ChangeNOW has existed for over a year and has earned a reputation for reliable service at great prices. The cryptocurrency exchange platform does not require opening an account, rapid processing of transactions for more than 170 cryptocurrencies, and fiat purchases to cryptocurrencies.
ChangeNOW is honest with its customers and does not charge hidden or increased fees. The transaction time is still quite short. Depending on the volume of the transaction, the processing speed may take as little as 2 minutes.
- Advantages: No registration, More than 170 cryptocurrencies, and tokens are listed: more than 36,000 trading pairs, No maximum amount of exchange, Two cryptocurrency exchange flows: standard and fixed exchange rate, Convenient credit card purchases, 24/7 assistance, Mobile app.
- Disadvantages: ChangeNOW does not offer leveraged cryptocurrency trading.
Xcoins.com is the leading cryptocurrency exchange in Europe. Since its launch in 2016, the easy-to-use platform has served more than 250,000 satisfied customers worldwide.
Xcoins offers a fast and secure solution to buy cryptocurrencies with 24-hour live support. They deal with beginners as well as experienced crypto veterans and support over 167 countries.
With extraordinary customer service and one of the fastest transaction processes, it’s easy to understand why Xcoins has grown exponentially since its inception.
Whether your level of experience or location in the world, Xcoins.com is a safe and reliable way to take control of your cryptocurrencies.
- Advantages: 24/7 live support, Low rates, Easy and secure registration and verification, Fast transaction processes and processes, Available worldwide.
- Disadvantages: Offers only BTC, ETH, LTC, XRP, BTC Cash.
Financed by trusted investors and used by millions of customers worldwide, Coinbase is one of the most popular and best cryptocurrency exchanges in the world.
The Coinbase platform enables the secure purchase, use, storage, and trading of digital currencies. Users can buy bitcoin, ether and now litecoin from Coinbase via a digital wallet available on Android and iPhone, or through a store with other users of the Global Digital Asset Exchange (GDAX) subsidiary.
They can also easily sell their cryptocurrencies and receive money directly into their bank account. GDAX is currently in the United States, Europe, the United Kingdom, Canada, Australia, and Singapore.
GDAX does not currently charge transfer fees between your Coinbase account and your GDAX account. For now, the choice of trading currencies will depend on the country in which you live.
- Advantages: Good reputation, security, high transaction volume, ease of use, reasonable costs, parts stored for beginners covered by Coinbase insurance. It is easy for newcomers to trade and buy bitcoins as it allows trading in fiat money.
- Disadvantages: customer support, limited payment methods, restricted countries supported, uneven distribution of services worldwide, GDAX only suitable for technical traders.
LocalBitcoin is a peer-to-peer (P2P) Bitcoin exchange with buyers and sellers in various cities around the world.
With LocalBitcoins, you can meet people in your area and buy or sell bitcoins in cash, send money via PayPal, Skrill, or Dwolla, or arrange for depositing cash at a bank branch.
LocalBitcoins only takes 1% commission from sellers who set their own rates. To guarantee the security of exchanges, LocalBitcoins takes a certain number of measures. To start, the platform assesses each reputable operator and publicly displays past activities.
Also, when a transaction is requested, the money is kept in the local Bitcoin custody service. Once the seller confirms that the exchange is complete, the funds are released.
If a problem occurs, LocalBitcoins has a conflict resolution team to resolve conflicts between buyers and sellers. This cryptocurrency exchange uses two-factor authentication or 2FA for added security.
It is a handy add-on to prevent account hacking. This function is not activated by default. The user must do this. Keep a record of the IP address of the computer used to open the account.
The exchange office will also keep a browser log, which is continuously used in accessing the account. If the user makes use of a new IP address (for example, moves to a new location), a verification process of the authentication email is performed.
The entire transaction between the parties uses LBC as a deposit to store the funds. Funds are only released when it is confirmed that the transaction has been completed.
- Advantages: No identification required for beginners, instant transfers are generally free and available worldwide.
- Disadvantages: It is difficult to buy large amounts of bitcoin due to the high rate.
If your goal is to trade cryptocurrencies, Binance is one of the best cryptocurrency exchange options. Ranked among the most popular cryptocurrency exchanges in the world, they offer you impressive deals with extremely low trading fees.
Although the Binance platform is a young player in the market, it is growing rapidly and offers a wide selection of alternative currencies with pairs of Bitcoin, Ethereum, and Tether.
The cryptocurrency exchange offers its currency called BNB (Binance Currency). Because you are a centralized exchange, you can get decent discounts while trading with their token.
Binance offers standard trading fees of only 0.1%, which can even be further reduced if payment is made using BNB.
- Advantages: Ubiquitous platform, token platform, very inexpensive to access, available worldwide.
- Disadvantages: No fiduciary business, limited payment options.
Choosing the best cryptocurrency exchange for your specific needs can be a time-consuming and challenging process. Remember to pay attention to the rates, reputation, security, verification processes, and geographic services offered by the cryptocurrency exchange platform.
Make sure you remember that you are not limited to using a single cryptocurrency exchange. We hope the information provided will help you decide which exchange platform to use.