Cryptocurrency exchanges are basically online sites where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency like US dollars or Euro. Using an exchange can be a way to trade your cryptocurrency and make the most of the Bitcoin boom.
There are two main types of exchanges. The first is a Fiat Exchange where crypto is traded with traditional currency while the second is cryptocurrency to cryptocurrency exchange, in this type of exchange you can trade crypto for other crypto for example Bitcoin and Ethereum.
There are many regulations that govern these exchanges, so sometimes you may have to use more than one exchange to get the cryptocurrency you are looking to own. Here are the top things to consider when choosing a crypto exchange.
What to Look for When Choosing a Crypto Exchange:
Is the exchange safe? The website and server being secure is of utmost importance. Recently a cryptocurrency exchange in South Korea was hacked and eventually filed for bankruptcy.
The volume of the exchange is another thing you should consider when choosing the exchange. The higher the volume, the safer it is.
The exchange fees charged can also be an important factor in choosing your exchange. While lower exchange fees can be better, it is important not to get scammed by fake exchanges. Stay vigilant while choosing your exchange
Another thing you should find out is the type of Cryptocurrency the exchange supports and the trading pairs available. Remember that not all exchanges offer all Cryptocurrencies.
The payment options the exchange offers is also something you need to look into before you sign up.
Knowing about the verification requirements the exchange needs can be necessary. While some exchanges do allow you to remain anonymous, others don’t. Verification can take few days on some exchanges. However, exchanges that encourage verifications are more likely to remain safe.
Some exchanges are only accessible for certain specific geographic locations and countries. Finding an exchange that is best suited for your location and needs is essential.
Top Cryptocurrency Exchanges:
Coinbase is a good option for beginners and allows users to make recurring purchases when investing in various crypto. It charges 1.49% fees on bank purchases and 3.99 percent fees on credit and debit purchases. www.coinbase.com
Coinmama is also a good option for crypto beginners and it is accessible with credit and debit cards. They sell Bitcoin and Ethereum to most countries. Their fees is higher than some others at 5.5 percent. www.coinmama.com
Bitpanda is based in Europe and sells many cryptocurrencies including Bitcoin, BCash, Dash, Ethereum, Litecoin and Ripple. The traditional currency used on this site is the Euro and it has payment methods such as bank transfers, credit and debit cards etc. it charges a 5 percent fee. www.bitpanda.com
Kraken is known to be one of the best Bitcoin exchanges around. It is said to be safe and also charge slow fees. Kraken lets you buy and sell bitcoins and trade between bitcoins and euros, US Dollars, Canadian Dollars, British Pounds and Japanese Yen. However Kraken is for more experienced users and not for crypto virgins. www.kraken.com
CEX.IO is another good exchange. It has a secure website and is based in the U.K and can trade across the world. It is suitable for beginners and supports credit cards. It however has a rather long verification process. cex.io
LocalBitcoins is an exchange platform that allows users to trade among themselves and charges low fees. Users can ratings of other users before they decide to trade. localbitcoins.com
Bitstamp is a cryptocurrency exchange which has a very high trading volume. Higher trading volumes essentially increase liquidity making it a lot safer. www.bitstamp.net
Gemini is based in New York and trades in Bitcoin and Ethereum and US dollars. The exchange charges low fees and offers multi factor authentication. gemini.com
While these are all fiat exchanges where crypto is traded for traditional cash, there are also some cryptocurrency to cryptocurrency exchanges. Depending on your requirements you should choose an exchange that best suits your location, investment strategy and trading ideas.