In the world of cryptocurrency, you cannot do without the exchange of cryptocurrency. This is a crucial component of the business. Sometimes the choice of cryptocurrency exchange can affect a lot, so it is vital to be confident in your exchanger. In our article, we will tell you about the most significant features that you need to know and take into account before choosing one of the best crypto exchanges.
Summary of the Best Bitcoin and Crypto Exchange
Not to pull for a long time with the most interesting, we will give you the names of the best Crypto Exchanges at the beginning of the article. If you do not have enough time to independently study the question and you want to go to the trading market immediately, you can trust us. These 3 platforms meet all the requirements and are the best in their categories. Here they are:
1. CEX.io
2. Coinmama
3. Localbitcoins
Below we will tell you the details of each of these platforms, but if you are in a hurry, you can just stop your choice on one of them. Although, of course, we recommend you familiarize yourself with all the useful information about a crypto exchange in our article.
Before making your choice, you can simply ask yourself a few questions. Based on your answers, you will quickly find a suitable cryptocurrency exchange. So, you need:
- Decide on the type of exchange. The three main ones are the trading platform, P2P, and a broker
- Check if the platform is available in your country
- Find out if the selected crypto exchange works with the type of coins you are dealing with; usually, exchanges support several currencies
- Check if you can use a payment system convenient for you
- Learn the specifics of working with the platform: buying limits and fees
- Read customer reviews and check the reputation of the cryptocurrency exchange. Past and current users will give you a true understanding of the company’s services.
Below, we will tell you everything you need to know about cryptocurrency exchanges to get started.
What Is a Cryptocurrency Exchange?
Cryptocurrency exchange (or just crypto exchange) is almost the same as familiar to us exchangers. They are not engaged in exchanging Euros for Dollars, but Euros and Dollars for cryptocurrencies like Ethereum or Bitcoin. Another difference is that these are not physical currency exchanges. They exist on the Internet.
Thus, Crypto exchange is an internet platform (website) where you can exchange fiat money (the so-called common currencies like GBP, USD, EUR, and others) for cryptocurrencies like Bitcoin. And in the same way, you can change them back.
Crypto Exchange Types
If most physical currency exchanges are approximately the same, then the situation with crypto exchanges is somewhat more complicated. The type of exchange platform will depend on these questions:
- Can you trade and interact with other users;
- Will they provide you with the coins themselves or just speculation of the price;
- Do you buy cryptocurrencies directly;
- And other features.
Therefore, it is worthwhile to thoroughly understand the various types of exchanges and choose the appropriate one.
P2P Platform
Platforms supporting this type: Paxful, LocalBitcoins
The task of such services is to connect buyers with sellers of coins directly. They then negotiate terms and conditions and close a deal. The disadvantage of such trading strategies is that you are exchanging with an unverified seller. But on the other hand, such platforms have many advantages:
- More supported countries
- A lot of payment methods
- More favorable conditions
Trading Platform
Platforms supporting this type: Bitstamp, Binance
This type of website also connects buyers and sellers of coins. The difference is that everything happens anonymously, and market participants do not communicate with each other directly to get Bitcoins or other digital currency.
Sellers post their offers to sell coins, and buyers place an order. An automated service selects the best offer according to the order. The downside is that the purchase does not happen instantly. Sometimes the service cannot immediately find a suitable sale due to the lack of a suitable offer.
The big advantage of this exchange platform is the cheapness of the method. Usually, there is the least commission, and many additional payments are absent. But a beginner will have to take some time to get used to the interface.
CFD Crypto Trading Platform
Platforms supporting this type: Plus500, eToro
A service that is not suitable for beginners, as it involves a lot of risks. But experienced users love it for its ease of use and user interface.
CFD stands for Contract for Difference. Users do not own coins; they are betting on the price of the currency in the future. Also, on this platform, you cannot withdraw purchased coins to the crypto wallet. Essentially, a contract is acquired regarding the price of a coin in the form of fiat currencies.
CFDs give users more potential for further trades and allow for higher rates by borrowing money from the platform (margin trading).
Broker Platform
Platforms supporting this type: Coinbase, Coinmama
Perhaps the simplest type of platform. Users simply buy coins directly through the site.
Pros:
- The simple process of crypto trading
- Intuitive interface
Cons:
- More expensive type of purchase
- High transaction fee
Best Bitcoin and Crypto P2P Platforms
LocalBitcoins
LocalBitcoins is a fully Bitcoin exchange that does not serve other types of cryptocurrencies. But you can use almost any payment method convenient for you.
This Bitcoin exchange supports:
- Webmoney
- PayPal
- Cash
- Western Union
- Wire transfer
You will need to pay a 1% sell fee to transfer your funds to a digital wallet located at the LocalBitcoins. If you want to learn more about this Bitcoin platform, you can read our full LocalBitcoins review.
LocalCryptos
LocalCryptos is a good P2P platform, perhaps with the only drawback — you run your business with real people, not with trusted companies. The service connects the buyer directly with the seller but is not responsible for the seller’s reliability.
This trading platform operates with several types of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others. The cryptocurrency exchange allows you to use various payment systems, which is undoubtedly a plus for users. Still, first, we would advise you to consider the other options of the trading platforms.
Best Cryptocurrency Trading Platforms
Bitstamp
This Bitcoin trading platform is supported by the fact that having survived all the troubles and disorders, it remains the oldest operating Bitcoin exchange in the world. Unfortunately, Bitstamp has some disadvantages:
- Not the most user-friendly interface
- A limited selection of payment systems
If you want to know more about this Bitcoin exchange, take a look at the Bitstamp review.
Luno
This trading platform supports three cryptocurrencies at the moment:
- Ethereum
- Bitcoin
- XRP
Luno‘s target is a market of developing countries like Indonesia, Nigeria, and Malaysia. If you want to know more about this exchange platform, take a look at the Luno review.
Binance
Binance, an excellent cryptocurrency and Bitcoin exchange trading platform offers one of the best rates in the world. Binance is ideal for exchanging crypto to crypto, but it also accepts credit cards. Users from all over the world can make an account and trade at Binance. If you want to know more about this exchange platform, take a look at the Binance review.
BitMex
BitMex is a crypto exchange platform for advanced users. They have two areas of their activity:
- Margin trading with Bitcoin
- Selling contracts for different types of cryptocurrencies
You can read more about Bitmex here.
Coinbase Pro
Coinbase Pro is a branch of Coinbase, the most popular crypto exchange platform in the USA. It will be very convenient for users that they do not need to create a new account. They can use the existing one on the Coinbase platform.
The trading platform supports several types of cryptocurrencies:
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
- ZRX
If you want to know more about Coinbase, take a look at our review.
PrimeXBT
PrimeXBT is one of the crypto trading platforms supporting different cryptocurrencies, including Bitcoin, Ethereum, LTC, EOS, and XRP. But to fund trades and account balances, one can use only Bitcoin. Other currencies are available for trading contracts with speculating on asset prices. If you want to know more about the trading options of PrimeXBT, take a look at our review.
Best Bitcoin and Crypto Brokers
BitPanda
BitPanda is a crypto exchange for European countries. Company advantages:
- Low transaction fees
- Support for various payment systems, including bank cards, bank account transfers, SEPA, Skrill, and others
This exchange was founded more than 6 years ago and remains one of the most famous in Europe to this day. If you want to know more about it, take a look at the Bitpanda review.
Coinmama
Coinmama is one of the oldest Bitcoin exchanges with many advantages:
- Wide coverage area, not available in only a few countries;
- Responsive and convenient customer service;
- Several payment methods (bank cards, SEPA or SWIFT transfers);
- Not only Bitcoin is available, but also other cryptocurrencies.
If you want to know more about Coinmama, take a look at our review.
CEX.io
CEX.io is a crypto trading platform and a broker at the same time. Users note the convenience of the company’s service. If you want to know more about this exchange, take a look at our review.
Coinbase
Coinbase is one of the most popular exchanges in the USA, although the company provides its products in more than 100 countries worldwide. The company was established by Brian Armstrong and Fred Ehrsam almost 10 years ago. Coinbase is a broker, but the company also has its own trading branch called Coinbase Pro. If you want to know more about Coinbase, take a look at our review.
Buyer Identity Disclosure
Over time, crypto exchanges began to gain more and more popularity, thereby attracting government interest. Although cryptocurrency is a free digital currency, countries’ governments try to control exchanges and get them to collect information about their customers. Therefore, modern exchanges support a procedure known as Know Your Customer (or KYC for short).
Before registering, clients need to provide some information about themselves. Usually this:
- ID number or Passport number
- Proof of residency
In some cases, exchanges are additionally asked to provide proof of income. This is done for the security purposes of the markets.
If you do not intend to disclose personal information, then we recommend you read our article on this topic: Buying and Using Bitcoin Anonymously / Without ID.
Exchange Features
Above, we have provided you with descriptions of the most popular and best crypto exchanges. Now you have to choose the best one for you. To do this, you need to decide on the features that we indicated below and are important for the selection of a suitable platform.
Supported Countries
Many services have limited geography. Make sure your chosen company is functioning in your place. Basically, the language of the platforms is English, so make sure you understand the information provided on the site.
Reputation
Check the reviews for the service before choosing. Check out the ratings and read articles. Remember, if there is only good feedback, it is unlikely that everything is provided honestly. The volume of the reviews and the company’s work with appeals is important. Is communication with exchange representatives convenient? Is important information provided clearly? Do they have an app?
Supported Coins
From our descriptions of the platforms above, you already understood that exchanges usually provide a limited choice of cryptocurrency. Also, it may be important for you which trading pairs are available. For instance, one can exchange Ethereum for Euro, then search among trading pairs for an ETH/EUR.
Exchange Rate
The exchange rate is an important metric that can contain hidden fees. Even if the company says that they have no additional fees, they can be enclosed in the rate itself.
Fees
There are different types of fees. The most common:
- Transaction fees
- Deposit fees
- Withdrawal fees
Read the rules carefully to be aware of the conditions.
Payment Systems
Some companies accept almost all payment methods, while others support just a few of them. Payment fees may depend on the choice of payment method. They will be higher for those systems where payment cancellation is possible.
Buying Limits
Another feature is designed to restrict trading volumes. Read the company policies to check. If you want to buy a lot of Bitcoins, some platforms will not work for you.
You can read more about how to buy Bitcoin here.
To Sum Up
We hope that our article will help you choose the best crypto exchange. At least now you know exactly what points you should pay attention to. Remember that the most important thing is reliability and safety. Therefore, sometimes it is better to overpay little funds to get reliable and high-quality service and not worry about the honesty of the products and services provided.
If you ask us to shorten our long list to only 4 platforms, then we can highlight:
- Coinbase and Coinbase Pro: Broker/trading platform
- Bitstamp: Trading platform
- CEX.io: Trading and broker platform
- Coinmama: Broker
FAQs
What are the best Bitcoin exchanges?
There is no universal answer to this question because it all depends on your goals, capabilities, and even geographic location. But if you ask us to single out the most popular and recognized platforms, then we can name the best ones:
- Coinbase and its branch Coinbase Pro
- Coinmama
- Bitstamp
- CEX.io
Bitcoin trading is gaining more and more popularity, so we advise you to carefully choose the place where you will exchange your bitcoins.
Which Bitcoin exchange is the safest?
We can highlight several cryptocurrency exchanges with high-security level:
- eToro (good for beginner traders)
- Coinbase and Coinbase Pro
- Binance
- Coinmama
- Bitpanda
- Bitstamp
- Kraken
- CEX.io
To choose the best exchange and investment platform, pay attention to the company’s reputation and the terms of the products and services provided.
What are the Top-10 cryptocurrency exchanges?
The cryptocurrency market is developing rapidly, more and more new business players appear, the trading volume is increasing. However, it is important to choose reliable exchanges.
If you ask us, we can name the 10 best platforms (out of order of preference):
- Coinbase
- Binance
- eToro
- Coinmama
- Bitpanda
- CEX.io
- Bitatamp
- Gemini
- Bittrex
- Bitmart
Some traders prefer to conduct business in multiple exchanges, thereby reducing their risks.
How many Bitcoin exchanges are there?
Some time ago, there were just over 200 Bitcoin exchanges in the world. We are sure that now this number is much higher. Not all of them have developed enough to become famous or function normally. There are not so many large and well-known players. Those who are worth trusting even less. Fiat currencies can be exchanged in almost any exchange anywhere on the planet, but crypto traders have to be more careful and responsible. Reliable platforms include eToro, Binance, Coinbase, and others.
